Individuals considering a planned gift are unique in their giving goals, financial means, and outstanding obligations. Please consult your estate planning attorney or financial advisor to determine which of these options is right for you.
Knox Heritage encourages its supporters and friends to provide for the future of the organization by including Knox Heritage in their philanthropic estate plans. A donor may name Knox Heritage as a beneficiary of his or her will or revocable trust, IRA, retirement plan assets, or life insurance policy. Bequests may be made in the form of cash, securities, specific property, or by naming Knox Heritage to receive a specific percentage of the estate or the residue of the estate after the payment of all taxes, other bequests, and expenses.
Many individuals have life insurance policies whose benefits they no longer need. If this applies to you, you may want to consider naming Knox Heritage the beneficiary and assigning us ownership of the policy. In doing so, you will receive a charitable deduction; and in removing the life insurance policy from your estate, you may also reduce your estate taxes.
Knox Heritage accepts gifts of real estate, both improved and unimproved, including gifts subject to a retained life estate, only after a thorough review of the criteria for acceptance. The donor must submit a letter of intent regarding the gift of real estate before Knox Heritage will conduct its own due diligence and market analysis. The existence of any and all mortgages, prearranged sales agreements, deeds of trust, restrictions, reservations, easements, mechanic liens, and other encumbrances and limitations of record must be disclosed. No gift of real estate will be accepted unless and until all encumbrances have been discharged, except in very unusual cases. Should a retained life estate gift be accepted, the donor will continue to be responsible for taxes, insurance, and maintenance on the property. If the donor wishes to sell the property prior to death, the donor and Knox Heritage will jointly negotiate the terms of the sale. The split of sale proceeds will be divided between the donor and Knox Heritage.
Retirement plans are excellent assets to leave to Knox Heritage. IRAs and qualified retirement plans such as 401(k)s, when passed on to heirs, can incur as much as 70 percent in taxes, because this asset faces double taxation. Not only is the plan benefit reduced by estate taxes, but the recipient must also pay income taxes on the plan.
If you plan to make a planned gift to Knox Heritage, you may want to consider naming us the beneficiary of your 401(k), pension, or other retirement plan, and leaving other assets to your family. Naming us the primary beneficiary avoids all income and estate taxes on the retirement plan. Of course, you can also name Knox Heritage for a portion of the assets, or as a contingent beneficiary, with the gift to be effective only after the death of a spouse or other family member.
Moreover, in 2001 the IRS issued favorable, simplified new rules for calculating minimum annual payments from IRAs and other retirement accounts such as 401(k)s. These new rules make it easier for you to accumulate more savings – tax deferred – in your account. Now you can name Knox Heritage as a beneficiary without increasing the minimum amounts you must withdraw each year. By taking advantage of these new rules, you can keep more tax-deferred savings in your account during your life and designate an important future gift to Knox Heritage.
Simply contact your plan manager, ask for a change of beneficiary form, and name Knox Heritage.