Tax Free Donations - Covenant House of Florida
Put Your Heart and Soul into a Legacy for Our Kids
The only way that kids at Covenant House receive a family inheritance is through our family of special supporters like you. Every legacy to Covenant House means that our kids — forgotten by almost everyone — have been remembered in the most meaningful way. Your legacy will live on in the hearts and souls of kids for years to come.
There are many ways to include Covenant House in your estate plans. Each of these techniques can provide significant estate tax savings. And your legacy will live on in the hearts and souls of kids for years to come.
Consider a Bequest in Your Will
A bequest to Covenant House can take many forms. For example, you can leave a specific dollar amount. Or, you can leave a percentage of your entire estate, or the amount remaining after other bequests are made. Another possibility is to leave a specific asset, such as your home, a piece of art, or securities to Covenant House. A bequest of government savings bonds may be particularly beneficial to you, as described below. Your attorney can help you incorporate a bequest to Covenant House into your will.
Bequests of Government Savings Bonds
You may wish to name Covenant House the beneficiary of E, EE, H or HH savings bonds that have not reached final maturity during your lifetime. Income tax on the unreported interest that accrued during your lifetime on these bonds will be completely avoided. And, the bonds will be removed from your taxable estate. If these assets are left to your heirs, they will be subject to heavy taxation.
Designate Covenant House a Beneficiary of a Life Insurance Policy
Life insurance policies are often overlooked in estate planning. Often, insurance was purchased years ago to meet a need that no longer exists. Consider naming Covenant House a beneficiary of a life insurance policy. This is easy to accomplish by completing paperwork provided by your insurance company.
Use Your IRAs or Other Retirement Plans To Provide for Covenant House
Many advisors believe that retirement plan assets are the smartest assets to leave to charities. These assets, if left to heirs, are taxed much more heavily than other assets. They are subject not only to estate tax, but also to income tax (when received by your heirs) and sometimes to a special additional "excess accumulations" tax. These combined taxes can leave only a fraction of the original amount for your heirs to enjoy.
Estate tax and income tax are completely avoided if you name Covenant House the beneficiary of assets remaining in these plans upon your death. In most situations, 100% of the assets can be put to good use helping our kids.
Your choice of beneficiary may affect the manner in which you need to take your required lifetime distributions. So, it is important to discuss this with your advisor.
Help Your Surviving Loved Ones Through a Legacy to Covenant House
Friends often want to leave a legacy to Covenant House, but first want to assure that one or more surviving loved ones receive necessary financial support. This can be accomplished through a Covenant House trust or annuity. Either would make lifetime payments to your surviving loved ones, after which Covenant House would receive the remaining principal. We would be pleased to work with you to determine what arrangement would best serve your needs.
Ideas for Special Situations
It is also possible to leave your home to Covenant House, but reserve the right for your spouse or other loved ones to continue to use the home during their lifetime.
Finally, if you have a very large estate, we can also suggest a trust arrangement that will enable you to leave your estate to children, grandchildren or other heirs at vastly reduced estate tax. The trust would make payments to Covenant House for a number of years, and then distribute the principal to your heirs.
Become a Member of Covenant House's Cornerstone
By using one of these estate-planning ideas to remember our kids, you can become a member of the Covenant House Cornerstone, the growing foundation for Covenant House's next 25 years. You will be welcomed with a handsome certificate and pin. You'll also receive inside news updates about Covenant House. But the most important benefit will be spiritual. You will know in your heart that you have made a commitment to our kids that will endure well beyond your own lifetime.
For further information on estate planning, to receive our booklet "Thoughtful Ways to Provide for Our Kids in Your Will", or for a confidential consultation with no obligation call Covenant House (954) 568-7913 or 1(800) 683-8338 ext. 7913.
The Bountiful Gift Annuity
By far the most popular charitable gift plan that provides life income is the Gift Annuity. The Gift Annuity combines meaningful benefits with the greatest affordability. It can make a big difference in your life and the lives of our kids.
A Gift Annuity provides annuity payments to the donor for life. The maximum annuity percentage is based on your age on the date of your gift. The annuity amount will not change for your lifetime.
What are the benefits of the Gift Annuity?
Increased Income: You will get a set dollar amount each year from Covenant House for the rest of your lifetime. Annuity rates range from 6.7% to 12% based on your age on the date of your gift. (see table below) Two-life annuities are available. The rates are especially attractive compared to today's low interest rates and historically low dividend yields. No matter how interest rates change in future years, your annuity payments will not change.
Sizable Tax Savings: Part of your annuity payments will be tax-free. In addition, you will receive an immediate income tax deduction for a sizable portion of the value of your gift. And capital gains tax can be avoided on gifts of appreciated securities.
Simplicity: The Gift Annuity is simple to understand. The agreement to establish your annuity is just one page written in simple English. No Fine Print!!
Safety: Your Gift Annuity payments are guaranteed by Covenant House and backed by our Segregated Annuity Reserve Fund under New York State Insurance Department guidelines. The payments to you do not change.
Affordability: The minimum gift for a Gift Annuity is an affordable $5,000.
Personal Satisfaction: Often the Gift Annuity allows you to make a contribution that otherwise would not be affordable. You'll be providing love, support and hope for a new beginning to a new generation. And we will be very grateful for your generous support.
Attorney Information
Covenant House Florida is a Florida not-for-profit corporation with the formal name of: Covenant House Florida, Inc. We are an exempt organization under Section 501(c)(3) of the Internal Revenue Code and our EIN is 59-2323607.
Covenant House does not provide financial or legal advice.
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