While it is best to speak with your personal financial advisor for information specific to your situation, following are a few types of planned gifts to consider:
Will/Bequest
A will is the cornerstone of any estate plan, no matter your income level. Benefits to giving through your estate plan include the following:
- You retain control of your assets during your lifetime – you can modify your bequest as circumstances change
- You can take advantage of tax laws that lower the estate tax burden on your survivors
- You can make a larger impact through a larger gift than may have been possible in your lifetime
- You can add Big Brothers Big Sisters of Northeast Wisconsin to your existing will by revising and re-executing the document at any time, or by executing a separate amendment called a codicil.
There are multiple ways to make a gift through your will:
Percentage
A bequest stated as a percentage will automatically adjust regardless of future circumstances. For example, “I leave 5 percent of my estate to Big Brothers Big Sisters of Northeast Wisconsin.”
Fixed dollar amount
Your estate doesn’t have to have cash or securities to cover the gift amount, as long as the value of all of your assets is sufficient. For example, “I leave $25,000 to Big Brothers Big Sisters of Northeast Wisconsin.”
What is left of your estate after specific bequests have been made:
This ensures that your gift is made only after you know the assets won’t be needed by your spouse or partner. For example, “If my partner survives me, then I leave my entire estate to my partner. If my partner does not survive me, then I leave my estate as follows…” When two partners use this clause in conjunction with each other, then each receives the other’s assets upon the death of the first-to-die, and other heirs and organizations receive the remaining assets upon the death of the second-to-die.
To make a bequest that qualifies for a federal estate tax charitable deduction, you may direct your gift to Big Brothers Big Sisters of Northeast Wisconsin as follows:
I hereby give, devise, and bequeath (insert dollar amount or percentage of the residue/ all of the residue of my estate) to Big Brothers Big Sisters of Northeast Wisconsin, a non-profit organization located at 520 N. Broadway St. Suite 220, Green Bay, WI 54303. Federal Tax ID #39-1274696, for Big Brothers Big Sisters of Northeast Wisconsin’s general use and purpose.
IRA Rollover
Individuals age 70½ can donate up to $100,000 directly from their Individual Retirement Account (IRA), without treating the distribution as taxable income.
Charitable Lead Trust
This method of giving reverses the more frequently used charitable remainder trust. With a charitable
lead trust, assets are transferred into a trust for a designated number of years. Annual payments are made to Big Brothers Big Sisters of Northeast Wisconsin for those years, and then the assets are paid to your named beneficiaries. For donors with large estates, charitable lead trusts may substantially reduce gift and estate tax costs.
Charitable Gift Annuity
A charitable gift annuity is a great way to supplement your income, reduce taxes, and support Big Brothers Big Sisters of Northeast Wisconsin. If you are age 60 or older, you can provide yourself with high, fixed payments for life with a charitable gift annuity. You make a current, partially tax-deductible gift of cash or stock and receive payments for life, regardless of the market, economy, or interest rates, all while supporting our mission.
When you establish a gift annuity, your gift will provide:
- A charitable income tax deduction (for the present value of the charitable gift)
- Fixed lifetime payments to you and/or another individual based on the age(s) of the recipient(s)
- Capital gain tax savings when you use appreciated securities to fund your gift
- Support for the purpose you designate when payments end
Charitable Remainder Trust
With a charitable remainder trust, assets are transferred into a trust for a designated number of years (or
for the duration of your life). Regular payments are made to you or another beneficiary for those years,
and then the remaining assets are paid to Big Brothers Big Sisters of Northeast Wisconsin.
Life insurance/Retirement funds
Your IRA, 401(k), or 403(b) plan is a great way to provide for your retirement. It can also be a good opportunity to create a lasting impact for youth for generations. You can make a difference in the lives of youth through a future gift through your retirement account. Benefits to giving through your retirement account include the following:
- Make withdrawals from your retirement account as usual during your lifetime
- Make a gift that becomes effective only when you and your spouse or partner no longer need the assets
- Donate all or a percentage of the balance of your account
The standard withdrawal formula for a retirement account is designed to make the balance last for your lifetime, and there is usually a remaining balance. That balance can make a great charitable gift — especially since leaving it to non-spouse family members generally makes it subject to estate tax. A beneficiary designation is separate from the instructions in your will, so you can make this type of gift even if you don’t have a will. How to make a gift through your retirement account:
Request a beneficiary designation form from the financial institution that manages your account. You can leave the whole balance or a percentage.
Complete the form using the below information, as requested:
Big Brothers Big Sisters of Northeast Wisconsin
520 N. Broadway St. Suite 220
Green Bay, WI 54303
Tax ID# (enter if asked for a Social Security #): 39-1274696
Phone: 920-498-2227
Email: info@bbbsnew.org
Complete the Confidential Bequest Intention Form to notify us of your plans.
To ensure your gift is made only after you know the assets won’t be needed by your spouse or partner, name your spouse as “primary beneficiary,” and Big Brothers Big Sisters of Northeast Wisconsin as “secondary beneficiary.”
Also please consider designating Big Brothers Big Sisters of Northeast Wisconsin as a beneficiary for:
- A life insurance policy
- Employer-provided life insurance
- A bank or brokerage account eligible for “pay on death” or “transfer on death”
- A donor advised fund or “charitable gift fund” account
- An IRA or Roth IRA or other retirement fund
If you’re considering making Big Brothers Big Sisters of Northeast Wisconsin part of your estate plan, please contact Emily Burgess, Director of Philanthropy, 920-489-3513 or emilyb@bbbsnew.org.