Income for You Now, Support for Wheeler’s Mission in Perpetuity

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With tax law changes in 2018, and more perhaps to come in 2021, donors are looking for the best ways to utilize their philanthropic gifts for the greatest impact and still enjoy savings on their taxes.

In this issue, let’s examine how another planned giving tool, the charitable gift annuity, may benefit you and your estate, and offer more stability of fixed payments for the remainder of your life. Always consult with your tax or financial advisors to determine the best strategies for you.

STABILITY OF FIXED PAYMENTS FOR LIFE

Charitable gift annuities are legal agreements creating a contract between the donors and Wheeler. In exchange for the gift, CGAs offer donors the security of fixed payments for the remainder of their lives. The gift agreement states the rate, amount, and schedule of payments that the donors receive from Wheeler.

The gift is set aside by Wheeler and invested. Based on the donor’s age(s) when the gift is made, they receive a fixed monthly or quarterly payout for the rest of their life. At the end of their donors’ lives, Wheeler receives the remainder of the gift.

In addition to supporting Wheeler’s mission through their annuity donation, donors may be able to receive tax savings on the gift that creates the annuity, based on how much will eventually go to Wheeler after all payments have been made, as well as the payments based on the donor’s life expectancy.

CGAs can be created through most investment/financial planning companies with cash, securities, or other assets.

A CHECKLIST TO START

Regardless of whether you choose a charitable remainder trust, a charitable gift annuity, or another way of planning your gift, it’s important to review your estate plans regularly to ensure they still accomplish what you want them to, and to make sure they reflect life’s changes. Events like births, marriages, even new tax laws, should all trigger a review of your estate plans.

Review Your Will. Check for any changes that may need to be made because of a change in your life or because you want to add a charitable gift to organizations you care about, such as Wheeler, in your plans.

Confirm Your Executor. Make sure the person named is still the qualified individual you want to manage your estate, resolve claims, and distribute the designated portions of your estate to your chosen beneficiaries.

Update Guardians. Make sure you are still comfortable with the guardian named in your will for those under your care. If your dependents were minor children who are grown now, does a guardian still need to be listed?

Review Your Beneficiaries. Make sure the beneficiaries you have designated for your insurance and retirement plans are up to date. Once you’ve named someone a beneficiary, it may be beneficial to let them know so they can claim the proceeds.

Check Your Power of Attorney. Make sure your durable powers of attorney for financial and health care are current. Provide a copy of your financial power of attorney to the named person. Your health care power of attorney designee will need a copy, along with your health care provider.

To discuss how you can donate stock to support the individuals and families that Wheeler serves and align our needs with your philanthropy, please contact our Philanthropic Giving Department at giving@wheelerclinic.org.

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