A bequest - a gift made through a donor’s will - is the most common and simplest form of planned giving. Individuals may include South Shore Hospital, South Shore Visiting Nurse Association, or Hospice of the South Shore in their wills by naming the Foundation for either a specific amount or a percent share of their estate. Donors may also name us as the residual beneficiary of their estates after payment of bequests to others.
Among the benefits of making a bequest gift is the fact that donors do not have to part with any money until they die, and do not owe any estate tax on the amount of the bequest.
Please call us at 781-624-8600 for more information on making a bequest gift.
Charitable Lead Trust
Charitable lead trusts are most appealing to wealthy donors who want to pass appreciated assets to their heirs without paying a substantial amount in taxes. This is done by allowing South Shore Hospital to receive income from the donor’s assets for a specified time, after which the asset is transferred back to the donor or to the donor’s heirs, who do not have to pay any additional taxes.
The donor does pay a gift tax on the asset when it is placed into the trust, after which it may grow tax-free. A lead trust may be structured to reduce gift and estate taxes or to provide a charitable deduction for the donor.
Please call us at 781-624-8600 for more information on establishing a charitable lead trust.
Charitable Remainder Trust
There are two basic types of charitable remainder trusts that qualify for federal tax benefits: Unitrusts and Annuity Trusts. In both arrangements, a donor contributes stock, cash, or other assets to a trust. Those assets are invested, producing income for the donor - or other beneficiary - either for a fixed time period or until the donor dies. The donor is allowed to claim a tax deduction for the estimated portion of the assets that will ultimately come to South Shore Hospital. When the donor or beneficiary dies, the Foundation retains all remaining assets.
Charitable remainder trusts allow donors and beneficiaries to receive income-tax deductions and escape capital gains taxes. Many donors find these trusts to be an appealing way to prepare for retirement. The assets can be invested to earn a lower rate of return when the donor is younger and then shifted to earn a higher rate of return, and thus provide more income during the donor’s later years.
Under a basic Unitrust, the donor receives one or more yearly payments equaling a fixed percentage of the value of the asset, which is assessed each year. Under a net-income unitrust, the donor receives only the income earned by the trust, even if the trust earns less than the payout rate. However, the trust can be set up to include a “make-up provision,” which allows the donor to make up the lost income, provided the trust earns more than the payout rate in future years.
Under an Annuity Trust, the donor receives a yearly fixed payment equaling at least 5 percent of the value of the asset at the time the deferred-giving agreement was signed.
Please call us at 781-624-8600 for more information on establishing a charitable remainder trust.
Gift annuity agreements provide older donors who give cash, securities, real estate, or personal property with fixed annual payments for a specified time period, usually for life.
With a deferred gift annuity, annual payments do not begin when the gift is made, but begin at a later time specified by the donor.
Gift annuities are attractive to donors who want to receive income from assets that have risen sharply in value, such as stocks or property. In return for gifts of such assets, South Shore Hospital Charitable Foundation guarantees donors a fixed annual income for the rest of their lives, and helps donors avoid capital gains taxes. The donor also gets an income-tax break on a portion of the earnings from an annuity. The exact amount depends on the donor's age.
Please call us at 781-624-8600 for more information on establishing a gift annuity.
A gift of whole life insurance may be made to South Shore Hospital by naming the Hospital as the irrevocable owner and beneficiary of the policy.
Your policy may or may not be paid. If the policy is not paid up as of the date of your gift, the policy must:
- Have a minimum face value of $50,000
- Have a payment schedule not to exceed ten years
Gifts of life insurance policies require charitable contributions from the donor to South Shore Hospital in the amount of any premiums, including unscheduled premiums, which may become due.
Please call us at 781-624-8600 for more information about giving a life insurance policy to South Shore Hospital Charitable Foundation.