Types of Gifts
The most simple and straightforward way to make a legacy gift to PEM is to name the museum in your will or living trust. A bequest affords you the ability to make a major gift to a specific program or interest you care about while preserving your assets during your lifetime. It is flexible and can be changed if your life circumstances change. You can make a bequest by either designating a specific amount (or piece of property) or a percentage of your estate. If you already have a will or trust, your attorney can draft a simple amendment to it. If you are considering a bequest, please provide our sample bequest language to your attorney.
New Giving Vehicle: Legacy Income Trusts
PEM and U.S. Charitable Gift Trust, a charitable organization sponsored by Eaton Vance, have partnered to offer a unique opportunity to PEM donors. The PEM Legacy Income Trusts are next-generation charitable planned giving instruments that enable donors to support PEM’s mission while also providing an income stream for up to two individual beneficiaries. Less restrictive in certain respects than other planned giving vehicles, the PEM Legacy Income Trusts are a turnkey option for donors.
Charitable Gift Annuity
A gift annuity is a common gift plan for people who have the desire to give, but still have the need to retain cash flow. It is a contract in which you make a gift and in exchange receive payments for life. These secure payments are guaranteed and fixed in amount and will not vary with market fluctuations. The amount of the payment depends on your age at the time you set up the gift annuity. There are some tax advantages in addition to the annuity payments. You receive an income tax charitable deduction at the time the annuity is funded, which could potentially help you save on your income taxes. In addition, part of each annuity payment usually is not subject to income tax (tax-free). At the end of the gift annuity term, the remaining amount is then used by PEM where it is most needed.
Charitable Remainder Trust
A charitable remainder trust, funded by any number of assets, provides income to you for a specified amount of time. In addition to the income you receive, you enjoy a substantial tax advantage at the time of gift and can help minimize estate and capital gains taxes. With a charitable remainder trust you make a gift and receive lifetime income. Because it is a tax-exempt entity, capital gains tax is avoided when appreciated assets are transferred to the trust and when they are sold by the trust. As a result, the full market value of the asset is put to work first for you and ultimately for PEM. In addition, you receive an income tax charitable deduction for a portion of the trust funding amount, which can be used immediately to save on income taxes.
Gifts from Real Estate and Other Assets
A gift of real estate, now or through your estate plan, can support PEM while providing you with significant tax savings. Such a gift made during your lifetime also can lighten the burden of an asset you no longer want or use, such as a second home or vacation property. You can even give us your residence now and continue to live in it for the rest of your life. PEM welcomes gifts of real estate, and we are pleased to work with you on how the gift of an asset such as land, art, and other personal property can help you with your plans and give the museum much needed support.
Gifts from Retirement Plans, Life Insurance and Other Financial Arrangements
You can make gifts from your retirement plans which can provide significant tax advantages for you and your heirs. This gift is among the most tax-wise ways to make an estate gift. This is because your retirement assets, if left to individuals (other than a spouse), will be subject to income tax in addition to any applicable estate tax. With a gift to a non-profit such as PEM, 100 percent of the funds are available for our charitable purposes. If you want to remember us in your estate plan, it is often better to leave other types of assets – cash, securities, real estate – to your heirs and give the more heavily taxed retirement asset to PEM.
IRA Charitable Rollover Gift
If you are older than 70 ½ years, you can make charitable gifts directly from you individual retirement accounts (IRAs) – transfers of up to $100,000 per individual per year directly from a traditional or Roth IRA to qualified charities (such as PEM) are permitted. The development office keeps well informed of the changing tax landscape and chances that come available through various federal efforts. Please do not hesitate to call us to explore these possibilities for you.
Life Insurance and Other Gifts
Life Insurance policies can also be used to make a gift to the PEM. Complete and return to the insurance company a form designating that PEM receives all or a portion of the death benefit associated with your life insurance policy. As an alternative to naming PEM as the beneficiary, you can transfer ownership of the policy. Transferring ownership results in income tax savings in the year of the gift.
Commercial annuity contracts, bank and investment accounts are also ways to leave a legacy gift by naming PEM as a beneficiary to receive all or a portion of your accounts.