It takes a special kind of person to make plans for the benefit of unknown people in the unknowable future, and the Habitat for Humanity Legacy Society was designed to recognize these forward-thinking friends. We are always delighted to welcome new members to this exclusive group, and there are only two requirements for membership. First, make arrangements to benefit Habitat for Humanity Portland/Metro East beyond your lifetime. These arrangements might include a bequest in your will, or a plan that provides life income and income tax benefits, like a Charitable Gift Annuity. Second, let us know about your plans. It is not necessary to specify a dollar value for these plans, but having some idea of the details allows us to plan for the future and is appreciated.
While it is not possible for Habitat for Humanity to provide tax or legal advice, we do have access to the Planned Giving experts who can provide information using the latest planned giving software and we will be happy to help you sort through your options in preparation for a visit to your professional advisors.
For more information contact Tracy Oswald at 503-287-9529 x25.
Options for Planned Giving
Wills and Family Trusts
Your estate plan can provide you with a variety of ways to help provide decent shelter for families in need. In your will you may decide to leave Habitat:
Minimum IRA Distribution after Age 70½
Are you forced to take money you don’t really need from your IRA accounts each year just so you can pay taxes on it? If so, you can change the world for a deserving family, and perhaps ease your tax pain at the same time. Simply write a check for the same amount as your required IRA distribution to Habitat for Humanity Portland/Metro East, and if you itemize, you may be able to eliminate some or all of your tax liability on the transaction.
You’d like to help, but need the income. Or you may have highly-appreciated stock that pays a low dividend, but you don’t want to trigger the capital gain. Whether funded with cash or stock, a gift annuity will provide a handsome cash flow that may be partly tax-free. You’ll also get a partial tax deduction now. If you transfer your stock to the gift annuity, you can significantly reduce the capital gain, and spread the rest of it out over a number of years. The best part is, after you’re gone, what’s left over will help build a nice new home for a Habitat family.
Defusing the IRA Tax Time Bomb
If you hope to leave IRA or pension plans to your heirs, they could be in for a rude surprise. Some estates will suffer double taxation on these assets, and end up losing 50% or more to taxes!
If you are worried about this possibility, give us a call. There may be some strategies available that can help you preserve more of your estate for your family while still furthering the vision to eliminate poverty housing around the globe.
Gifts of Stock
Do you have some shares of long-term appreciated stock you won’t need? You can simply transfer these shares directly to Habitat for Humanity Portland/Metro East. You’ll get a full tax deduction for the entire market value, avoid the capital gain, and do your part in helping to create a world where poverty housing is unacceptable.
Life Insurance Policies
Many families own life insurance policies that have outlived their original purpose, and which can aggravate estate taxes if not treated with care. Often, these old policies can be used to create a new life for a Habitat family in a clean, comfortable home. Also, new life insurance policies can sometimes be used to make giving a larger gift to Habitat more convenient and affordable.