Shape the Future of Way
Making a bequest to the Way Public Library Foundation & Friends not only is a sign of benevolence, but also is the mark of your desire to help shape the future.
The proceeds of any planned gift can be unrestricted, allowing the Foundation to meet the needs of the Way Public Library as they arise, or can be restricted, offering a way for you to support a program or area in which you are particularly interested.
Bequests are one of the simplest and most common types of charitable gifts. Along with significant tax benefits, you will gain a kind of immortality that can’t be achieved in any other way. Please let us know your plans. We would like the opportunity to convey our appreciation of your consideration.
Perhaps one of the most important documents you will ever make is a will—your last chance to remember loved ones and make sure your assets are distributed as you want. Through your will you can…
- Provide for your family’s security.
- Name a guardian for dependents under your care.
- Name an executor or administrator of your estate.
- Incorporate trusts.
- Make charitable provisions.
One of the simplest ways to leave a planned gift is to make a bequest by including specific language in your will or living trust naming the Foundation as the recipient of a testamentary gift. You may contribute a specific dollar amount, a percentage of your estate or the residual of your estate in this manner. Your heirs will not pay estate taxes on these assets.
Types of Planned Giving
Planned gifts to the Way Public Library Foundation and Friends can be an advantageous way to create a legacy for our community, while also meeting your own financial and personal objectives.
Gifts of appreciated assets, such as stock or real estate, may be a good choice for those who want to make a charitable contribution while optimizing tax benefits. A donation of an appreciated stock gives the donor a tax deduction equal to the value of the stock on the date it is donated.
A Charitable Remainder Trust allows the donor of the trust to transfer appreciated assets without paying capital gains tax, while also keeping an income stream for the donor’s lifetime or a term of years. The trust will also allow the donor to take a current charitable deduction on a portion of the property transferred to the trust. Upon the death of the donor the assets remaining in the trust will be distributed to the Foundation.
A Charitable Lead Trust makes payments of the income earned by the assets of the trust to the Foundation during the donor’s lifetime or a selected term of years. After the trust term ends (upon the death of the donor or after the expiration of the selected term), the assets of the trust (principal) pass to the donor or the donor’s children. The tax savings from a charitable lead trust may allow you to provide significant support for the Foundation at little or no cost to heirs.
Qualified retirement plans (KEOUGH, IRA, 401(k), 403(B) or annuity) are not transferred through your will, provided a beneficiary is named for such plan. Often, a retirement plan is a pre-tax asset and, when transferred to a named beneficiary upon the owner’s death, may trigger a large tax obligation for your heirs. Naming the Foundation as the beneficiary of your qualified retirement plan may be advantageous, as donating retirement accounts can reduce or eliminate these taxes.
Naming the Foundation as a primary or contingent beneficiary of a life insurance policy is another effective way to meet your financial and personal objectives. The Foundation can be named the beneficiary of a life insurance policy, payable upon your death. If the Foundation is named both the sole owner and beneficiary of a paid-in-full policy, you may receive an immediate charitable deduction for the lesser of the policy’s fair market value or the net premiums paid. Additional premiums that you pay may also be tax deductible.
As with all financial matters, no decision should be made without first consulting your financial or tax advisor.