PLANNED GIVING SAMPLE LANGUAGE
How to name Penfield Children’s Center in your will or trust
To make an estate gift to PCC, ask your attorney to draft a statement in your will or trust that expresses your desire in one of the following ways.
Give a Fraction of Your Estate
Sample language: I give _____ % (fraction spelled out) of the rest, residue, and remainder of my estate, after payment of all specified bequests, expenses, taxes, and debts, to Penfield Children’s Center, presently located at 833 N 26th St, Milwaukee, WI 53233.
Give a Specific Amount
Sample language: I give $ _____ (number spelled out) to Penfield Children’s Center, presently located at 833 N 26th St, Milwaukee, WI 53233.
Give a Contingent Amount
Sample language: If none of the persons I have identified above as beneficiaries of my estate survive me, I give the rest, residue, and remainder to Penfield Children’s Center, presently located at 833 N 26th St, Milwaukee, WI 53233.
How to Give Penfield Children's Center an insurance gift
You can also name Penfield as the beneficiary of the total or a fraction of your life insurance policy.
Fractional Amount
Name Penfield Children’s Center, presently located at 833 N 26th St, Milwaukee, WI 53233 as the beneficiary of _____ % (percentage spelled out) of the proceeds of the policy.
Gift Insurance Policy Today
If the policy is a paid-up policy and there are no loans, liens, or debts against it, consider giving it to Penfield Children’s Center. After discussing your wishes with your legal and financial advisers, please email Penfield Partnerships and Investments staff at development@penfieldchildren.org
Naming Penfield Children's Center as a 401(k), 403(b), or IRA beneficiary
Qualified employee benefit plans accumulate tax-free during a person’s lifetime but are subject to tax at the person’s death.
- 100% of the account balance is included in the taxable estate of the decedent.
- Any taxable beneficiary who receives a distribution from a 401(k), 403(b), or IRA as a result of the death of the owner must pay income tax on the entire amount received.
- Some plans could be taxed as much as 85%.
Penfield Children’s Center is a qualified nonprofit 501(c)3 organization, so it is exempt from paying taxes on qualified employee benefit plans.
- Designating a qualified organization like PCC as a beneficiary means that your gift will not be subject to estate tax.
- As a result, the money from your plan will go directly to supporting the good work that you care about.
To name Penfield Children’s Center as your qualified plan beneficiary:
Fractional Beneficiary: Give _____ % (percentage spelled out) to Penfield Children’s Center, presently located at 833 N 26th St, Milwaukee, WI 53233.
Donating to Penfield using a qualified charitable distribution (QCD)
Looking to lower your taxable income and support PCC? Consider a QCD.
If you are age 73 or older, IRs rules require you to take required minimum distributions (RMDs) each year from your tax-deferred retirement accounts. This additional taxable income may push you into a higher tax bracket and may also reduce your eligibility for certain tax credits and deductions. For example, your taxable income helps determine the amount of your Social Security benefits that are subject to taxes. Keeping your taxable income level lower may also help reduce your potential exposure to the Medicare surtax. To eliminate or reduce the impact of RMD income, charitably inclined investors may want to consider making a qualified charitable distribution (QCD).
The rules of QCDs
A QCD must adhere to the following requirements:
- You must be at least 73 years old at the time you request a QCD.
- For a QCD to count toward your current year’s RMD, the funds must come out of your IRA by your RMD deadline, which is generally December 31 each year.
- Funds must be transferred directly from your IRA custodian to the qualified charity. This is accomplished by requesting your IRA custodian issue a check from your IRA payable Penfield Children’s Center. (If a distribution check is made payable to you, the distribution would NOT qualify as a QCD and would be treated as taxable income).
- The maximum annual distribution amount that can qualify for a QCD is $100,000. This limit would apply to the sum of QCDs made to one or more charities in a calendar year. If you’re a joint tax filer, both you and your spouse can make a $100,000 QCD from your own IRAs.
- The account types that are eligible for QCDs include: Traditional IRAs, Inherited IRAs, SEP IRA (inactive plans only) and SIMPLE IRA (inactive plans only)
What is a QCD?
A QCD is a direct transfer of funds from an IRA custodian, payable to a qualified charity. Amounts distributed as a QCD can be counted toward satisfying your RMD for the year, up to $100,000, and can also be excluded from your taxable income.
Am I eligible for QCDs?
In prior years, the rules that permitted QCDs required reauthorization from Congress each year, and those decisions were sometimes made late in the calendar year. With passage of the Protecting Americans from Tax Hikes (PATH) Act of 2015, the QCD provision is now a permanent part of the Internal Revenue Code. This means you can plan your charitable giving and begin reviewing your tax situation earlier each year.
Tax filing for QCDs
A QCD is reported by your IRA custodian as a normal distribution on IRS Form 1099-R for any non-Inherited IRAs. For Inherited IRAs, the QCD will be reported as a death distribution. You should keep an acknowledgement of the donation from the charity for your tax records. Please consult a tax advisor to learn more.
