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A growing number of generous Museum members and friends are helping the Museum prepare for the future by making a planned gift or bequest to the Museum. The information that follows suggests ways to provide a lasting legacy to Boston Children’s Museum, thereby enriching the lives of many generations to come. By making a planned gift or bequest to Boston Children’s Museum you can:
- Reduce taxes on your estate through a Bequest, your Retirement Plan or
Insurance Policy (the IRA Rollover is back!)
- Avoid capital gains tax with an Outright Gift of Appreciated Stock
- Receive income for life through a Charitable Remainder Trust
- Pass assets to your children and grandchildren and cut transfer taxes
through
a Charitable Lead Trust
- Give your home to the Museum, receive a tax deduction, and continue to
live in it with a Retained Life Estate
Museum members and friends committed to ensuring the Museum's future for generations to come with their planned gifts are automatically inducted into the Museum's legacy society.
Members of the legacy society receive invitations to exhibition openings and exclusive Museum events.
For more information on joining the legacy society through a planned gift or bequest, call the Museum's Planned Giving Office at (617) 426-6500 x 201, send an email to Cantor@BostonChildrensMuseum.org , or write to:
Judi T Cantor, VP of Development
Boston Children's Museum
308 Congress Street
Boston MA 02210
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Reduce Estate Taxes--Bequests
One of the simplest ways to make a gift to the Museum is through your Will. You can make a gift to the Museum of a dollar amount, specific property, a percentage of your estate, or what is left after your loved ones have been taken care of. Bequests to the Museum are entirely free from federal estate tax, and there is no limit on the amount you can leave to the Museum or any other charitable organization through your Will.
Here is some sample bequest language:
"I irrevocably give, devise and bequeath to the Boston Children’s Museum, Tax ID # 04-2103993, 308 Congress Street, Boston MA 02210 the sum of $_____ (or a description of a specific asset), for the benefit of Boston Children’s Museum to be used for general purposes (or state a specific purpose). If at any time in the judgment of the trustees of Boston Children’s Museum it is impossible or impracticable to carry out exactly the designated purpose, they shall determine an alternative purpose closest to the designated purpose."
Retirement assets can be subject to multiple levels of taxation, and the combination of federal income, and estate taxes can significantly diminish the value of a retirement account. When you name the Museum as a beneficiary of your Individual Retirement Account, Keogh plan, 401(k), 403(b) or other qualified pension plan, your estate receives a charitable deduction for the full amount of these funds. Because the tax burden on your estate may thus be reduced, your heirs may receive increased amounts from other assets directed to them under your Will.
A large cash value resulting from a relatively small premium makes a Life Insurance Policy an attractive planned gift. With a charity as beneficiary, the policy is not included in the donor's taxable estate.
The IRA Charitable Rollover is Back!
Congress has restored the legislation that allows individuals aged 70½ and older to make tax free transfers of up to $100,000 from an IRA account (or other qualified retirement account) to a charity. This is called the Pension Protection Act (PPA).
This is an exciting opportunity to support Boston Children's Museum (and may be an easy way to make a new gift or pay off a pledge), but it won't last long—the new law allows these transfers only during 2009. If you are required to take minimum withdrawals, this may be a great way to make a gift to the Museum.
Important Details:
- Individuals who are 70½ or older may take advantage of this opportunity.
- Gifts to Boston Children's Museum of up to $100,000 can be made in 2009.
- These gifts should be made directly from the donor’s IRA to BCM.
- The IRA withdrawal is tax-free.
- The charitable distributions can "count" toward your required minimum distributions.
- An individual is not eligible for a charitable income tax deduction because of this gift.
Here is a sample letter which you may use to request a charitable distribution from your Individual Retirement Account:
Request to Administrator.doc
Make your gift today to take advantage of Congress's limited time offer. Call our Office of Planned Giving at (617) 426-6500 x 201 or your IRA administrator for more information.
Avoid Capital Gains Tax—Appreciated Stock
An Outright Gift of Appreciated Stock enables the donor to obtain substantial tax benefits. First, donors receive an income tax deduction equal to the full fair market value of the stock on the date of the gift. In addition, no capital gains tax is due when the Museum sells the stock, so the full value of the gift supports the Museum's work.
Appreciated stock is also an excellent asset to use for funding a gift plan that provides income for life. Because Boston Children's Museum will benefit in the future from the principal of the gift, capital gains tax is avoided when appreciated stock donated into the plan is sold to reinvest for higher income.
When transferring stock please call the Development Department (617) 426-6500 x201 to let them know your broker will be transferring stock, the kind of stock and how much, and where you want the proceeds to go (e.g., the Annual Fund, to satisfy a pledge, etc.)
Then, give your broker these wiring instructions:
- DTC #0226, State Street Global Advisors
- Free delivery for benefit of Boston Children’s Museum into account #AB2 033898 THE CHLDRNS MUSEUM
Income for Life
Charitable life income gifts can enable you to:
- Increase your income
- Receive an immediate charitable income tax deduction
- Avoid capital gains tax
In a life income plan, the donor makes an up-front gift to the Museum, but retains the right to receive income payments for life (or, in certain cases, a period of up to 20 years). At the end of that time, the remaining principal goes to support the Museum's work. The Museum can help you set up a Charitable Remainder Trust:
A Charitable Remainder Trust is a trust established by the donor to hold and invest assets. The income payments are made in one of two ways; either as a fixed percentage of the total trust principal as valued each year, or as a fixed dollar amount of the trust value on the date of the gift. The trust can have a duration of either the lives of the donor and/or loved ones, or a specific term of up to 20 years. This plan is most cost effective if a larger, "six figure" gift is being considered, and it can be structured to meet the specific needs of the donor and the income beneficiaries.
Pass assets to children
and reduce transfer taxes
Members and friends who wish to make a substantial gift to the Museum over a period of years, who own an income producing asset that is appreciating, and who want to ensure that their property will ultimately pass to loved ones may be interested in a Charitable Lead Trust. Instead of directing income payments to the donor, this type of trust provides income payments to the Museum for a specified number of years. After that term, the trust assets are transferred to younger beneficiaries the donor designates, with a substantial deduction on the gift or estate taxes in consideration of the income stream to the Museum.
A Retained Life Estate allows a donor to make a gift of his or her primary residence or vacation home to the Museum, yet continue to live there for life. A donor giving a Retained Life Estate to the Museum enjoys an immediate income tax deduction. In addition, because the property has been given to the Museum, it is not included in the donor's probate estate. Ask us for a confidential proposal.
Note: The information in this web site is not intended to serve as legal or financial advice. When planning a specific charitable gift, a legal or financial advisor should be consulted.
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