Friends of The Army
SOUTHERN NEW ENGLAND Vol. XVI, Iss. 3
Friends of the Army ESTATE AND FINANCIAL PLANNING IDEAS
Make Your Legacy Last Forever Benjamin Franklin, one of the Founding Fathers of our country, was among the first in a long line of Americans who created legacies that would live for future generations. Franklin left a total of £2,000 sterling (equivalent to $4,400 each) in trust for the town of Boston and the city of Philadelphia, noting he wished “to be useful even after my death.” Franklin was not concerned with saving estate taxes when he signed his will in 1788. His bequest was in return for the benefits he had received from his friends in these towns. Franklin directed that, for the first 100 years after his death, the funds were to make loans and investments to help young apprentices, much like he was helped in his early years. The cities had access to a portion of the funds in the second hundred years, with the remainder passing outright at the end of 200 years. Eventually, Philadelphia received a $2 million distribution, with $600,000 passing to the Philadelphia Foundation in 1993, to support vocational training. Boston’s share had grown to $5 million. To this day, Franklin’s bequests continue to provide financial support for causes he supported. Just as Franklin sought to benefit Boston and Philadelphia, The Salvation Army’s Hometown Endowment allows you to address needs in your own community. In an endowment, the earnings from your gift are used to fund programs you support, for years to come. Almost any kind of gift can be designated for a hometown endowment: cash, securities, insurance proceeds, bank accounts, real estate, retirement plan benefits, distributions from wills or living trusts or the charitable portion from charitable gift annuities, charitable remainder trusts or charitable lead trusts. Your gift to the hometown endowment helps create a stable source of income, allowing us to reach people in need for decades into the future. We’d be happy to show you how you can leave a lasting legacy of caring through a hometown endowment.
Send for our new FREE publication, Better Living Through Charitable Giving
The First Step in Planning Your Estate Whether planning your first will or updating existing plans, The Salvation Army is available to help. In the privacy of your home, without cost or obligation, our gift and estate planning staff will save you much time and expense by helping you to complete step one of your estate plan. We can: n Review the assets in your estate – including how jointly owned property would affect your heirs;
Mission Statement The Salvation Army, an international movement, is an evangelical part of the universal Christian church. Its message is based on the Bible. Its ministry is motivated by the love of God. Its mission is to preach the gospel of Jesus Christ and to meet human needs in His name without discrimination.
n Discuss your needs concerning a will, including the possibility of leaving heirs a lifetime income, with a later gift to the Army; n Examine the possible advantages of trusts in your estate plan; n Review your federal and state estate tax situation;
n Prepare a worksheet that you can take to your attorney for independent review and advice, and the preparation of necessary documents.
The Salvation Army is a name you know and trust. Consider meeting with one of our trained planned giving staff members who will help you do your homework before seeing your attorney about having your will drafted or revised. We can also meet with you and your advisers to discuss charitable opportunities in your estate plan. Our services are provided at no obligation.
Year-End Ideas for Assisting Army Programs A gift to The Salvation Army at year-end can be a source of both satisfaction and tax savings. Consider some of these options: n Stocks or mutual fund shares that have gone up in value can be given at remarkable tax savings. You can deduct the current fair market value of securities, not just what you paid originally, if you have held the shares more than one year. The capital gains tax that would have been due if the shares were sold is completely avoided. n A life insurance policy that is no longer needed for family security can be given to the Army, generating an income tax deduction to reduce your taxes.
n U.S. savings bonds stop earning interest after a certain number of years. Consider redeeming fully matured bonds and contributing the proceeds to the Army. The charitable deduction from your gift may offset tax on the bonds’ interest and reduce other taxable income.
n If you are age 70½ or older, you can make a tax-free gift of any amount up to $100,000 to the Army from your IRA. Simply direct the custodian of your account to send us a check. The amount of your gift can satisfy all or part of your required minimum distribution for 2016, saving you income taxes, even though no charitable deduction is allowed. Please contact us if you’re planning an IRA distribution so we may watch for your gift and provide the proper substantiation.
The highest use
Send for Our New Free Booklet Friends of the Army know that their gifts will mean support for the work we do in their communities and beyond. That important knowledge is obviously a source of deep personal satisfaction. A desire to “do the most good” is, in fact, the starting point in all gift planning. But gifts can also be planned to provide donors with significant tax and financial rewards, and in many cases can help achieve personal and family goals. Indeed, friends of the Army may find that they truly can enjoy “better living through charitable giving.” The Salvation Army has a new publication, Better Living Through Charitable Giving, that explores ways to meet your goals while supporting our efforts. We would be pleased to send you a copy – just return the enclosed envelope. We would also be happy to sit down with you to design gifts that will “do the most good” for you, your family and the Army.
of capital is not to make more money, but to make money do more for the betterment of life. ~ Henry Ford
Don’t Let the State Decide Many people put off making a will until it’s too late, often creating needless challenges for their families. The entertainer Prince, who died in April, is a good example. Prince died unexpectedly at the age of 57, survived by one sister and seven half-siblings. He had two ex-wives and no known children. To date, no will has been presented for probate. Under Minnesota law for those dying without wills, his sister and half-siblings will receive equal shares of his estimated $300 million estate. Estate taxes alone could amount to nearly $120 million. Sales of his recordings, many of which had never been released, will continue generating income for his estate for years to come. Many of the questions surrounding Prince’s estate could have been eased or eliminated with a will and/or revocable living trust. While your personal situation may not be as complex as Prince’s, you still need an estate plan that:
n decides who gets what from your estate, especially where there are children from prior marriages or distant relatives, some possibly unknown; n minimizes taxes for your survivors, including income taxes and state or federal estate taxes;
n provides money management for beneficiaries who need it;
n nominates an executor to manage your estate, or a guardian for minors or disabled persons under your care;
n enables you to continue the support you have provided for The Salvation Army’s programs.
From the Office of Planned Giving In this newsletter, we provide help and information on your personal planning and key financial or estate issues. Please contact us if you want more information about such matters – or to find out more about the work of The Salvation Army. We also hope you will send for our new publication, Better Living Through Charitable Giving.
Major Jorge L. Marzán Divisional Commander Captain Limaris Marzán Director of Women’s Ministries
Michael Afflitto Director of Planned Giving [email protected]
Please call our office for the appropriate wording whenever you are preparing a gift through your will, living trust, IRA or other beneficiary designation. The Salvation Army Southern New England Division Office of Planned Giving P.O. Box 628 • Hartford, CT 06142-0628 (860) 702-0070 • Toll-Free: (888) 468-5356 Mobile: (860) 882-7101 www.salvationarmyCT.org or www.salvationarmyRI.org
The purpose of this brochure is to provide accurate information of a general character only. For specific recommendations, each person should consult his or her own qualified professional adviser.
Non-Profit Organization U.S. Postage PAID Rockford, IL Permit No. 2495
Southern New England Division Office of Planned Giving P.O. Box 628 Hartford, CT 06142
Inside this Issue of
Friends of the Army n Make Your Legacy Last Forever
n The First Step in Planning Your Estate
n Year-End Ideas for Assisting Army Programs
n Better Living Through Charitable Giving
n Don’t Let the State Decide
n Estate Taxes Celebrate a Birthday
Estate Taxes Celebrate a Birthday
n avoid probate costs on contributed assets;
It’s also possible to retain income for life from your gifts. For example, Joan planned to leave a $50,000 bequest to The Salvation Army in her will. She could, instead, contribute that amount to the Army today, to fund a charitable gift annuity that will provide her with a fixed stream of payments for life. If Joan is age 72, she would receive $2,700 (5.4%) each year, a portion of which would be tax-free. In addition, Joan would be entitled to a charitable deduction of more than $20,000, saving her income tax of more than $5,600 in her 28% income tax bracket.
n give friends the personal satisfaction of seeing gifts put to use in Army programs.
Joan’s gift annuity will provide future benefits for Salvation Army programs, just as if she had left a gift in her will.
A century ago, in 1916, the estate tax was born. At the time, the tax was 10% on estates of $50,000 or more (equivalent to about $1 million today). Today, the tax rate is 40% on estates of $5.45 million or more, making estate taxes a thing of the past for the vast majority of Americans. Some friends of the Army who have included gifts in their estate plans might find it both satisfying and economical to accelerate estate gifts into lifetime contributions. Lifetime gifts: n provide income tax charitable deductions;
n allow us to express our gratitude to you today;
Friends of the Army ESTATE AND FINANCIAL PLANNING IDEAS
Make Your Legacy Last Forever Benjamin Franklin, one of the Founding Fathers of our country, was among the first in a long line of Americans who created legacies that would live for future generations. Franklin left a total of £2,000 sterling (equivalent to $4,400 each) in trust for the town of Boston and the city of Philadelphia, noting he wished “to be useful even after my death.” Franklin was not concerned with saving estate taxes when he signed his will in 1788. His bequest was in return for the benefits he had received from his friends in these towns. Franklin directed that, for the first 100 years after his death, the funds were to make loans and investments to help young apprentices, much like he was helped in his early years. The cities had access to a portion of the funds in the second hundred years, with the remainder passing outright at the end of 200 years. Eventually, Philadelphia received a $2 million distribution, with $600,000 passing to the Philadelphia Foundation in 1993, to support vocational training. Boston’s share had grown to $5 million. To this day, Franklin’s bequests continue to provide financial support for causes he supported. Just as Franklin sought to benefit Boston and Philadelphia, The Salvation Army’s Hometown Endowment allows you to address needs in your own community. In an endowment, the earnings from your gift are used to fund programs you support, for years to come. Almost any kind of gift can be designated for a hometown endowment: cash, securities, insurance proceeds, bank accounts, real estate, retirement plan benefits, distributions from wills or living trusts or the charitable portion from charitable gift annuities, charitable remainder trusts or charitable lead trusts. Your gift to the hometown endowment helps create a stable source of income, allowing us to reach people in need for decades into the future. We’d be happy to show you how you can leave a lasting legacy of caring through a hometown endowment.
Send for our new FREE publication, Better Living Through Charitable Giving
The First Step in Planning Your Estate Whether planning your first will or updating existing plans, The Salvation Army is available to help. In the privacy of your home, without cost or obligation, our gift and estate planning staff will save you much time and expense by helping you to complete step one of your estate plan. We can: n Review the assets in your estate – including how jointly owned property would affect your heirs;
Mission Statement The Salvation Army, an international movement, is an evangelical part of the universal Christian church. Its message is based on the Bible. Its ministry is motivated by the love of God. Its mission is to preach the gospel of Jesus Christ and to meet human needs in His name without discrimination.
n Discuss your needs concerning a will, including the possibility of leaving heirs a lifetime income, with a later gift to the Army; n Examine the possible advantages of trusts in your estate plan; n Review your federal and state estate tax situation;
n Prepare a worksheet that you can take to your attorney for independent review and advice, and the preparation of necessary documents.
The Salvation Army is a name you know and trust. Consider meeting with one of our trained planned giving staff members who will help you do your homework before seeing your attorney about having your will drafted or revised. We can also meet with you and your advisers to discuss charitable opportunities in your estate plan. Our services are provided at no obligation.
Year-End Ideas for Assisting Army Programs A gift to The Salvation Army at year-end can be a source of both satisfaction and tax savings. Consider some of these options: n Stocks or mutual fund shares that have gone up in value can be given at remarkable tax savings. You can deduct the current fair market value of securities, not just what you paid originally, if you have held the shares more than one year. The capital gains tax that would have been due if the shares were sold is completely avoided. n A life insurance policy that is no longer needed for family security can be given to the Army, generating an income tax deduction to reduce your taxes.
n U.S. savings bonds stop earning interest after a certain number of years. Consider redeeming fully matured bonds and contributing the proceeds to the Army. The charitable deduction from your gift may offset tax on the bonds’ interest and reduce other taxable income.
n If you are age 70½ or older, you can make a tax-free gift of any amount up to $100,000 to the Army from your IRA. Simply direct the custodian of your account to send us a check. The amount of your gift can satisfy all or part of your required minimum distribution for 2016, saving you income taxes, even though no charitable deduction is allowed. Please contact us if you’re planning an IRA distribution so we may watch for your gift and provide the proper substantiation.
The highest use
Send for Our New Free Booklet Friends of the Army know that their gifts will mean support for the work we do in their communities and beyond. That important knowledge is obviously a source of deep personal satisfaction. A desire to “do the most good” is, in fact, the starting point in all gift planning. But gifts can also be planned to provide donors with significant tax and financial rewards, and in many cases can help achieve personal and family goals. Indeed, friends of the Army may find that they truly can enjoy “better living through charitable giving.” The Salvation Army has a new publication, Better Living Through Charitable Giving, that explores ways to meet your goals while supporting our efforts. We would be pleased to send you a copy – just return the enclosed envelope. We would also be happy to sit down with you to design gifts that will “do the most good” for you, your family and the Army.
of capital is not to make more money, but to make money do more for the betterment of life. ~ Henry Ford
Don’t Let the State Decide Many people put off making a will until it’s too late, often creating needless challenges for their families. The entertainer Prince, who died in April, is a good example. Prince died unexpectedly at the age of 57, survived by one sister and seven half-siblings. He had two ex-wives and no known children. To date, no will has been presented for probate. Under Minnesota law for those dying without wills, his sister and half-siblings will receive equal shares of his estimated $300 million estate. Estate taxes alone could amount to nearly $120 million. Sales of his recordings, many of which had never been released, will continue generating income for his estate for years to come. Many of the questions surrounding Prince’s estate could have been eased or eliminated with a will and/or revocable living trust. While your personal situation may not be as complex as Prince’s, you still need an estate plan that:
n decides who gets what from your estate, especially where there are children from prior marriages or distant relatives, some possibly unknown; n minimizes taxes for your survivors, including income taxes and state or federal estate taxes;
n provides money management for beneficiaries who need it;
n nominates an executor to manage your estate, or a guardian for minors or disabled persons under your care;
n enables you to continue the support you have provided for The Salvation Army’s programs.
From the Office of Planned Giving In this newsletter, we provide help and information on your personal planning and key financial or estate issues. Please contact us if you want more information about such matters – or to find out more about the work of The Salvation Army. We also hope you will send for our new publication, Better Living Through Charitable Giving.
Major Jorge L. Marzán Divisional Commander Captain Limaris Marzán Director of Women’s Ministries
Michael Afflitto Director of Planned Giving [email protected]
Please call our office for the appropriate wording whenever you are preparing a gift through your will, living trust, IRA or other beneficiary designation. The Salvation Army Southern New England Division Office of Planned Giving P.O. Box 628 • Hartford, CT 06142-0628 (860) 702-0070 • Toll-Free: (888) 468-5356 Mobile: (860) 882-7101 www.salvationarmyCT.org or www.salvationarmyRI.org
The purpose of this brochure is to provide accurate information of a general character only. For specific recommendations, each person should consult his or her own qualified professional adviser.
Non-Profit Organization U.S. Postage PAID Rockford, IL Permit No. 2495
Southern New England Division Office of Planned Giving P.O. Box 628 Hartford, CT 06142
Inside this Issue of
Friends of the Army n Make Your Legacy Last Forever
n The First Step in Planning Your Estate
n Year-End Ideas for Assisting Army Programs
n Better Living Through Charitable Giving
n Don’t Let the State Decide
n Estate Taxes Celebrate a Birthday
Estate Taxes Celebrate a Birthday
n avoid probate costs on contributed assets;
It’s also possible to retain income for life from your gifts. For example, Joan planned to leave a $50,000 bequest to The Salvation Army in her will. She could, instead, contribute that amount to the Army today, to fund a charitable gift annuity that will provide her with a fixed stream of payments for life. If Joan is age 72, she would receive $2,700 (5.4%) each year, a portion of which would be tax-free. In addition, Joan would be entitled to a charitable deduction of more than $20,000, saving her income tax of more than $5,600 in her 28% income tax bracket.
n give friends the personal satisfaction of seeing gifts put to use in Army programs.
Joan’s gift annuity will provide future benefits for Salvation Army programs, just as if she had left a gift in her will.
A century ago, in 1916, the estate tax was born. At the time, the tax was 10% on estates of $50,000 or more (equivalent to about $1 million today). Today, the tax rate is 40% on estates of $5.45 million or more, making estate taxes a thing of the past for the vast majority of Americans. Some friends of the Army who have included gifts in their estate plans might find it both satisfying and economical to accelerate estate gifts into lifetime contributions. Lifetime gifts: n provide income tax charitable deductions;
n allow us to express our gratitude to you today;
