Legacy Giving -- Giving from Assets
"Children's Hospital is one of East Tennessee's finest assets. With treatment, research, preventive programs and a caring culture, Children's Hospital truly leads the way to healthier tomorrows."
-- James S. Bush,
chair emeritus of the Children's Hospital Board of Directors
Tennessee’s inheritance laws provide for those without a will, but they don’t provide for your church or favorite charities, a disabled child, a favorite cousin in need or other areas/individuals important to you. Wills gifts to Children’s Hospital can be a specific dollar amount, a percentage of your assets, or a specific asset like a second home or extra lot. After you take care of your spouse and children a will bequest is a statement of your values and what your community means to you. If all Tennesseans had a will and left just 5 percent to charity, imagine how our lives could change.
Appreciated securities are the perfect gift because publicly traded stocks are easy to value and painless to gift through electronic transfer. In addition, capital gains go untaxed. As with all gifts to Children’s Hospital, stock gifts remove the assets from your estate and can help you avoid estate taxes. Closely held stocks can be given under certain circumstances.
Real property can be used to benefit our children through a gift of a whole or partial interest. Real estate can include your personal residence, a second home, farm lands or commercial buildings.
Today many people own assets that are providing a very small income stream. Depending on your age, those items can be placed in a Charitable Remainder trust that provides you and your spouse with lifetime income. The remainder later comes to Children’s Hospital but you will receive a federal income tax deduction upon making the gift and no capital gains are due upon the transfer of appreciated assets. In addition to Charitable Remainder Trusts, Charitable Gift Annuities (CGA) provide you with an income for life. Annuity rates are dependent on age, but can be as high as 8.8%. When the annuity matures, Children's Hospital receives your charitable gift.
- Life insurance can be very affordable, and it’s easy to name a charity or several charities as the beneficiary using your beneficiary form. Donors have also named Children’s Hospital as the contingency or partial beneficiary.
- IRAs are the most heavily taxed of all legacy gifts. The funds build up over decades with no income tax paid and the child beneficiary must pay taxes at his or her rate. IRAs also are included in estate taxes. It’s possible for taxes to take 60 percent or more of your IRA. A great idea is to gift all or part of IRA accounts to charity and purchase replacement life insurance for children.
Please discuss the idea of using these assets and more for charitable giving with a trusted lawyer, CPA or financial advisor. For questions about making a legacy gift or what areas of our work you can support, please contact Debra Poole, Planned Giving Director at (865) 541-8441.
Please don’t regard information on this site as legal or other financial advice. Your particular situation will be unique.