Gifts made through your estate ensure that education, support and research will continue finding answers and giving hope to the many families affected by CM/SM.  There are several ways you can make a gift through your estate:

Your Will

Life Insurance

Retirement Plan Assets

For more information, contact the office by phone 903-236-7079 or email Giving@ASAP.org.

Bequests and Estate Gifts: Your Will    (^ top)

It has been said that a will is the final expression of a person's values. The causes, individuals and institutions that are remembered in a will tell quite a bit about the author.

A document of such importance deserves careful preparation to achieve its author's objectives. And it takes careful planning to achieve optimum benefits from the assets of an estate. Many factors affect the creation of an effective will.

Your Will – A Vital Document

Perhaps the most important benefit of creating a valid will is the opportunity to specify how you wish your assets to be distributed. Your wishes are unique, and only through a valid will can you be assured that your wishes will be carried out.

You may have items of tangible personal property, for example, that you wish to transfer to specific beneficiaries. Your will can accomplish such a transfer; and since it is probable that the needs of each of your beneficiaries is different, your will can include provisions keyed to the specific needs of each one.

Your will is a very powerful instrument. If it is thoughtfully prepared and carefully drafted, it can provide peace of mind for both you and your beneficiaries.

A Bequest in Your Will

Each year thousands of individuals, exercising their privilege to determine the final distribution of their estates, designate that a portion of their assets be used for the benefit and support of America's charitable organizations. Gifts by will have become an integral part of the American philanthropic tradition because they enable people to make significant contributions that might not have been possible during life.

Gifts by will can be tailored to meet your own specific personal and financial objectives. For example, you may wish to express your bequest as a percentage of your estate rather than as a specific dollar amount. Such a percentage bequest is an excellent method of protecting your beneficiaries against a possible reduction in the size of your estate.

"I give and bequeath to the American Syringomyelia Alliance Project, Inc, (ASAP), a 501 (C)(3) located at 300 N. Green Street, Suite 412, Longview, Texas, the sum of _______ (or the property described below or ____% of my residual estate) for use in furthering the charitable purposes of ASAP."

Bequests and Estate Gifts: Life Insurance   (^ top)

Many members, family and friends have discovered that life insurance policies they purchased years ago have now outlived their original purpose and can provide an ideal means of making a significant gift to ASAP either during their lifetime or through their estate.

For a gift during ones' lifetime, a donor should assign irrevocable ownership to ASAP, after naming ASAP as the beneficiary of a whole life policy. By doing so, the donor will be entitled to a federal income tax deduction for an amount equal to the policy's replacement cost (cash value) or cost basis (total premiums paid less dividends received), whichever is less. If the policy is paid up, the donor will receive a gift credit for the cash value of the policy. If the policy is not paid up, the donor may elect to maintain the policy in force by continuing to pay premiums annually. Those premiums are fully deductible as charitable contributions.

For a gift through one's estate, the donor should request a beneficiary designation form from their insurance company. ASAP may be named as the ultimate beneficiary of the policy. The proceeds of the policy will be distributed to ASAP directly by the insurance company, bypassing the probate process. The value of the distributed gift to ASAP will be considered a tax-deductible contribution in the donor's estate.

For more information on making a gift of a life insurance policy, contact the office by phone 903-236-7079 or email Giving@ASAP.org  

If you already have a gift vehicle in mind, and want to see how it will impact your taxes, please contact your tax professional.

Bequests and Estate Gifts: Retirement Plan Assets   (^ top)

Many members, family and friends find themselves with substantial retirement plan assets and wonder if they can be used to make a gift to ASAP. They can, but the tax consequences of such a gift vary greatly depending on when the gift is made.

Retirement plan assets, such as those held in IRA, pension, Keough, 401(k) or 403(b) plans, are all part of a class of assets called "IRD" (income with respect to a decedent). This group of assets usually provides deferral of income and taxation on accrued interest and dividends. When withdrawals of these assets are made during lifetime, they are usually taxed as ordinary income to the recipient. However, when these assets are left in the recipient's estate, they become IRD assets. As such, they may be passed to a spouse, generally without tax consequences under the provisions of the unlimited marital deduction. However, income that is passed onto heirs via these assets is first included in the decedent's gross estate for tax purposes, and then taxed as ordinary income (subject to federal and any applicable state income tax) to the heirs as withdrawals are made. Thus, the value of passing these assets to heirs is greatly diminished, as the following simplified example of an IRA in a $3.5 million estate illustrates:

For the individual who wishes to make a bequest to ASAP, it is generally better to consider a gift of taxable assets, such as retirement plan assets, or other IRD assets. The estate will receive a charitable estate tax deduction for the value of the retirement plan assets passing directly to ASAP and the heirs can receive other assets, such as appreciated property, which will carry a stepped-up cost basis.

What about a lifetime gift of retirement plan assets?

Under current tax laws, there is no tax-advantaged way to transfer such assets directly to ASAP. While some plan assets may be transferable directly, such a transfer is treated the same as a withdrawal, and taxed to the plan recipient as ordinary income. Of course, an outright gift of cash to ASAP will usually provide a federal income tax deduction that can offset most, although sometimes not all, of the ordinary income tax liability. A gift to one of ASAP's life-income gift plans will provide only a partial income tax deduction.

Can a bequest of retirement plan assets be counted in an ASAP Event or Annual Fund Campaign or the Research Campaign?

Yes, as long as the bequest is pledged irrevocably. If the donor and/or the spouse are 75 or older, or will turn 75 before June 30, 2003, an irrevocable bequest pledge may be counted at full value. If the donor and/or the spouse are younger than 75, the amount of the bequest will be counted at present value. For example, the value credited to a couple age 70 is currently 45.6 percent of gift value.

Is there any way for me to use retirement plan assets to make a gift to ASAP and help my family?

Yes, it is possible to set up a charitable remainder unitrust under your will for the benefit of family. Retirement plan assets may be directed to the trust. Your estate would receive an estate tax deduction for the value of the portion of the trust calculated to be left to ASAP. Family members may receive an income stream from the trust for lifetime or a term of up to 20 years. A valued advisor, a bank or a charity may serve as trustee.

Generally, ASAP requires a minimum gift of $100,000 and a charitable deduction of at least 25 percent of the trust's value for it to serve as trustee.

For additional information about gifts of retirement plans assets, please contact the office by phone 903-236-7079 or or by email Giving@ASAP.org.   (^ top)