WILLS, STOCKS & IRAs
Wills & Estate Planning
Your estate plan can provide you with a variety of ways to help provide decent shelter for families in need. Please speak with your financial planner for specific information. It takes a very special person to make plans for the benefit of people in the future!
In your will, you may name Green Mountain Habitat for Humanity (Federal tax ID #22-2558923) as a beneficiary using simple wording such as:
I give, devise and bequeath to Green Mountain Habitat for Humanity, with offices in Williston, Vermont, or its successor in interest, ( a % or cash value), to be used for its general purposes, outright and free of trust.
Green Mountain Habitat for Humanity always welcomes cash donations to assist with the organization’s home building mission. However, we understand that such gifts are not always possible or in line with your estate planning goals. If you’re looking for a creative way to give to Green Mountain Habitat for Humanity, we hope you’ll consider “planned giving” when you plan your estate, as another way to support Green Mountain Habitat’s mission.
Planned giving is a form of charitable giving in which gifts come from accumulated resources, such as real estate or marketable securities, rather than from current income. There are a multitude of planned giving techniques that can help individuals who want to make generous gifts to worthy causes, but who must balance philanthropic intentions with the need for current income and the desire to pass on assets to loved ones.
Some planned giving techniques are straightforward and easy to accomplish, such as leaving assets to Green Mountain Habitat for Humanity through your will or naming Green Mountain Habitat as the beneficiary of an IRA or other retirement plan. Other techniques are more complex, such as creating a charitable gift annuity or establishing a charitable remainder trust. Some further options include gifts of life insurance, or gifts of real estate, or the grant of a remainder interest in your personal residence. Your estate planning attorney can talk you through what options might be tailored to best fit your individual circumstances.
Here is an example of a straightforward planned giving technique that can result in significant tax savings. Consider the estate of “John Smith”, who, like many Americans, has a large percentage of his estate in the form of traditional IRA (not ROTH) accounts. John’s children have good incomes and are in no dire need of the entire estate.
If John designates his children as beneficiaries of his retirement accounts the funds will likely be subject to triple taxation when he dies. The funds will be subject to 1) Vermont estate tax levied against John’s estate, 2) federal income tax when his children take required distributions and 3) Vermont income tax when his children take required distributions.
Instead, John decides to designate Green Mountain Habitat for Humanity as the beneficiary of his retirement accounts. This is much more tax efficient. Any retirement account balance left to charity is not includible in John’s estate for estate tax purposes. No income tax will be due for the required distributions to Green Mountain Habitat because the organization is a charitable entity and exempt from income tax. In our (very general) hypothetical, all estate tax consequences for John and income tax consequences for his children are avoided.
Other options for possible “planned future gifts” include gifts of life insurance, stocks or real estate.
Regardless of the technique chosen, planned giving can help you realize a wide range of benefits that allow you to give to Habitat in a manner that is in line with your other financial, tax and estate planning goals. In some cases, it can provide for an additional income stream, gift and estate tax deductions, and creditor protections. In every circumstance, planned giving preserves your legacy and furthers Green Mountain Habitat’s vision for a world where everyone has a decent place to live.
If you have any questions about your planned giving options, please contact your estate planning attorney. For specific questions about Green Mountain Habitat for Humanity, reach out to Catherine Stevens, Advancement Director, at 802-872-8726.
Stocks & IRAs
Land, life insurance, stocks, and IRAs are other ways to donate now or in the future. Green Mountain Habitat for Humanity’s Federal tax ID is #22-2558923
IRA Charitable Rollover
If you are at least 70 ½ you may makeCharitable Donations from your IRA and exclude this gift from your gross income for Federal Income Tax purposes.
- You must be 70½ or older to be eligible to make a Qualified Charitable Donation, or QCD from your traditional IRA
- QCDs are limited to the amount that would otherwise be taxed as ordinary income. This excludes non-deductible contributions.
- The maximum annual amount that can qualify for a QCD is $100,000. This applies to the sum of QCDs made to one or more charities in a calendar year. If you file taxes jointly, your spouse can also make a QCD from his or her own IRA within the same tax year for up to $100,000.
Click here for an IRA Charitable Rollover Gift Form which you can fill out and give to your IRA administrator.
Green Mountain Habitat for Humanity
300 Cornerstone Dr
Williston, VT 05495