How to include the Haddonfield Outdoor Sculpture Trust in Estate Planning

Honor someone you love or celebrate a special event while managing your taxes efficiently, through a legacy gift to HOST.  A variety of estate planning tools reduce taxable income and estate taxes while preserving value, such as bequests, outright gifts, life insurance, donor-advised funds, charitable remainder trusts, and qualified charitable distributions. One of the easiest and most popular ways to enact charitable estate planning tools is through your will or a codicil to the will.  Always consult a tax or legal advisor before making any charitable gifts.  

Here are a few simple ways to include the Haddonfield Outdoor Sculpture Trust in your estate plan.

Simple Bequest

You give cash or unencumbered property to a charity at death.  The charitable deduction is unlimited for estate tax calculation purposes for property or interest in property.  Naming a charity as beneficiary of your traditional IRA avoids federal estate taxes or income taxes.

Outright Gifts

You transfer cash or title/ownership of property to a charitable organization. Deductions may be limited based on your adjusted gross income, type of property donated, use of the donated property, and other variables.  

Life Insurance

 Life insurance allows individuals, even of modest means, to leave a meaningful gift to the charity of their choice or a donor-advised fund.  It is an easy way to guarantee a bequest as a legacy, and may be structured to allow an individual to get an income tax charitable deduction for the premiums paid to fund the policy.

Donor-Advised Fund

Administered by a third party and created for the purpose of managing charitable donations on behalf of an organization, family or individual, a donor-advised fund offers the opportunity to create an easy-to-establish, low-cost, flexible vehicle for charitable giving as an alternative to direct giving or creating a private foundation.  HOST can provide this through The Haddonfield Foundation under the umbrella of the South Jersey Community Foundation.

Charitable Remainder Trust

You transfer property to HOST in exchange for a lifetime income.  The Trust sells the property and pays no tax on any capital gain, thereby enabling 100 percent of the proceeds to be available for reinvestment.  Had you sold the property and paid tax on the gain, there would be less money to provide an income stream.  You can receive an income tax deduction for the net fair market value of the property placed into the Trust, minus the present value of the payment stream.  When the Trust ends, its remaining assets pass to the charity.

Qualified Charitable Distribution

A QCD is a direct transfer of funds from your IRA custodian, payable to a qualified charity such as HOST.  QCDs can be counted toward satisfying your required minimum distributions (RMDs) for the year if certain rules are met.  In addition to the benefits of giving to charity, a QCD excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA.  Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, including Social Security and Medicare.  You must be 70 ½ or older to be eligible to make a QCD.  The maximum annual amount that can qualify for a QCD is $100,000.  This applies to the sum of QCDs made to one or more charities in a single calendar year.