- 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
For more information on planned giving, call the Development Office at (617) 426-6500 x 245, send an email to Richardson@bostonchildrensmuseum.org , or write to:
Brenna Richardson, Campaign and Annual Fund Manager
Boston Children's Museum
308 Congress Street
Boston, MA 02210
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.
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
- 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.