A Bequest to Save Taxes
Thomas was a widower who had a great love for Free Will Baptist ministries.
As an individual who had directly benefited from their work, Thomas wanted
to thank them with a gift from his estate.
Thomas told his attorney that he wished to make a bequest to Free Will
Baptist ministries. Thomas' estate included some stocks, real estate and an
IRA. Thomas' attorney recommended that he give the appreciated stock and
real estate to his children and leave his IRA to charity.
Thomas:
My attorney told me that if I gave the stock and real estate to my
children, these assets would receive a step-up in basis at my death. My
children could then sell them without paying tax. However, if I gave my
children my IRA, the IRA would be subject to estate and income tax. After
paying all of these taxes, very little would be left for my family. By
giving the IRA to this organization, I could make a nice gift and avoid any
additional tax for my estate and children.
Thomas contacted his IRA custodian to obtain a beneficiary designation
form. He filled out the form and designated Free Will Baptist ministries as
the 100% recipient of his IRA account. Thomas' attorney then specified in
Thomas' estate plan the bequest of his other assets to his children.
Thomas called and notified us of his bequest. Thomas was pleased that
because Free Will Baptist ministries are tax exempt institutions, it would
receive the full amount of the IRA value when he passed away, creating a
legacy for the future.
You also may want to make it easy and convenient to have a bequest included
in your estate plan. The language below shows how a bequest can very easily
be included in your estate plan.
You might find it helpful to select the "print" button below and print this
page. Please feel free to give this information to your attorney. If he or
she has any questions, please contact us.
*Please note: The name and image above is representative of a typical donor
and may or may not be an actual donor to our organization. Since your
benefits may be different, you may want to click here to view
a color example of your benefits.
Example bequest language - Please feel free to change the numbers or percentages as you desire.
1. Bequest of cash
"I bequeath the sum of $10,000 to Free Will Baptist of Antioch, TN."
2. Bequest of a percent of the estate
"I devise and bequeath 20% of the remainder and residue of property owned at my death, whether real or personal, and wherever located to Free Will Baptist, Antioch, TN."
3. Contingent Bequest
"If my brother John Doe survives me, I devise and bequeath 20% of the remainder and residue of property owned at my death, whether real or personal, and wherever located to John Doe. If John Doe does not survive me, then I devise and bequeath 20% of my residuary estate, whether real or personal property and wherever located to Free Will Baptist, Antioch, TN."
