PLANNED GIVING & ESTATES
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Planned gifts benefit the Mount Horeb Area Historical Society, and can also provide the donor with an opportunity to maximize the tax benefits of their generosity.
This webpage is designed to provide general information about various ways of giving to MHAHS, including some of the potential benefits. It is not intended to provide specific advice about the financial, tax, or legal implications of charitable giving. Before making a gift, you should consult with your professional advisors for a thorough analysis of your individual situation and the financial, tax, and legal implications so that you can determine which of these ways of giving might work best for you. |
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REQUIRED MINIMUM DISTRIBUTIONS
You may choose to direct part or all of your annual Required Minimum Distribution (RMD) from an IRA, 401k or 403b directly to the Society. You receive a double tax benefit: those qualified plans were funded with pre-tax dollars AND your taxable income is reduced by the amount of the distribution directed to the Society
APPRECIATED STOCK
You can donate appreciated stock to the Society. You receive a charitable deduction equal to the fair market value of the stock on the donation date. For example if you purchased stock for $10,000 and donated it to the Society when the value was $50,000, you receive a charitable deduction of $50,000 and no capital gains taxes are owed.
LEGACY GIFTS
You can also extend your support beyond your lifetime with legacy gifts.
MHAHS as a Beneficiary
You can name the Society as a beneficiary of your Will, Living Trust or Irrevocable Trust, IRA, Life Insurance Policy, or Annuity. It is as easy as designating, “Mount Horeb Area Historical Society, Inc., Tax ID Number 51-0180176” as a beneficiary.
Charitable Trusts & Annuities
You can establish a Charitable Remainder Trust, a Charitable Lead Trust, or a Charitable Annuity.
Charitable Annuity Trust
You donate cash or appreciated stock to a charitable irrevocable trust. The Trust makes fixed payments to you, or another beneficiary, over the beneficiary’s lifetime or for a term up to 20 years. Payments are determined by IRS rules. After the beneficiary dies or after the term expires the Trust distributes the remaining Trust assets to the Society. The initial contribution is partially deductible, as determined by the IRS. Payments to the beneficiaries are taxable to them.
Charitable Remainder Unitrust
You donate cash or appreciated stock to a charitable irrevocable trust. The Trust makes annual distributions to you or another beneficiary over the beneficiary’s lifetime or for a term up to 20 years based on a fixed percentage multiplied by the value of the Trust assets which are re-valued each year, so payments vary from year to year. Payments may be made over the beneficiary’s lifetime or for a term up to 20 years. After the beneficiary dies or after the term expires, the Trust distributes the remaining Trust assets to the Society. The initial contribution is partially deductible as determined by the IRS. The payments to the beneficiaries are taxable to them.
Charitable Lead Annuity Trust
You donate cash or other assets to a charitable irrevocable trust established by you. The Trust makes fixed payments as determined by the IRS rules to the Society over a set term. After the payment term expires, the Trust distributes the remaining Trust Assets to you or a non-charity beneficiary. You may take a one-time charitable deduction based on the present value of the future payments during the term of the Trust. The annual income of the trust is taxed to the donor.
Charitable Lead Unitrust
You donate cash or other assets to a charitable irrevocable trust established by you. This trust distributes annual payments for a set term to the Society based on a fixed percentage multiplied by the value of the Trust assets which are re-valued each year, so payments vary from year to year. After the term expires, the Trust distributes the remaining Trust assets to you or a non-charity beneficiary. You may take one-time charitable deductible based on the present value of the future payments during the term of the Trust. The annual income of the trust is taxed to the donor.
Charitable Annuity
This option is not currently offered by MHAHS but could certainly be discussed. You donate cash of appreciated stock to the Society which sets it aside and invests it. The Society pays you annual payments (annuity payments) based on a contract that you make with the Society. After the payment term ends, or you die, the remaining assets remain with the Society. You receive a tax deduction for the initial contribution, but the annuity payments are taxable to you.
You may choose to direct part or all of your annual Required Minimum Distribution (RMD) from an IRA, 401k or 403b directly to the Society. You receive a double tax benefit: those qualified plans were funded with pre-tax dollars AND your taxable income is reduced by the amount of the distribution directed to the Society
APPRECIATED STOCK
You can donate appreciated stock to the Society. You receive a charitable deduction equal to the fair market value of the stock on the donation date. For example if you purchased stock for $10,000 and donated it to the Society when the value was $50,000, you receive a charitable deduction of $50,000 and no capital gains taxes are owed.
LEGACY GIFTS
You can also extend your support beyond your lifetime with legacy gifts.
MHAHS as a Beneficiary
You can name the Society as a beneficiary of your Will, Living Trust or Irrevocable Trust, IRA, Life Insurance Policy, or Annuity. It is as easy as designating, “Mount Horeb Area Historical Society, Inc., Tax ID Number 51-0180176” as a beneficiary.
Charitable Trusts & Annuities
You can establish a Charitable Remainder Trust, a Charitable Lead Trust, or a Charitable Annuity.
Charitable Annuity Trust
You donate cash or appreciated stock to a charitable irrevocable trust. The Trust makes fixed payments to you, or another beneficiary, over the beneficiary’s lifetime or for a term up to 20 years. Payments are determined by IRS rules. After the beneficiary dies or after the term expires the Trust distributes the remaining Trust assets to the Society. The initial contribution is partially deductible, as determined by the IRS. Payments to the beneficiaries are taxable to them.
Charitable Remainder Unitrust
You donate cash or appreciated stock to a charitable irrevocable trust. The Trust makes annual distributions to you or another beneficiary over the beneficiary’s lifetime or for a term up to 20 years based on a fixed percentage multiplied by the value of the Trust assets which are re-valued each year, so payments vary from year to year. Payments may be made over the beneficiary’s lifetime or for a term up to 20 years. After the beneficiary dies or after the term expires, the Trust distributes the remaining Trust assets to the Society. The initial contribution is partially deductible as determined by the IRS. The payments to the beneficiaries are taxable to them.
Charitable Lead Annuity Trust
You donate cash or other assets to a charitable irrevocable trust established by you. The Trust makes fixed payments as determined by the IRS rules to the Society over a set term. After the payment term expires, the Trust distributes the remaining Trust Assets to you or a non-charity beneficiary. You may take a one-time charitable deduction based on the present value of the future payments during the term of the Trust. The annual income of the trust is taxed to the donor.
Charitable Lead Unitrust
You donate cash or other assets to a charitable irrevocable trust established by you. This trust distributes annual payments for a set term to the Society based on a fixed percentage multiplied by the value of the Trust assets which are re-valued each year, so payments vary from year to year. After the term expires, the Trust distributes the remaining Trust assets to you or a non-charity beneficiary. You may take one-time charitable deductible based on the present value of the future payments during the term of the Trust. The annual income of the trust is taxed to the donor.
Charitable Annuity
This option is not currently offered by MHAHS but could certainly be discussed. You donate cash of appreciated stock to the Society which sets it aside and invests it. The Society pays you annual payments (annuity payments) based on a contract that you make with the Society. After the payment term ends, or you die, the remaining assets remain with the Society. You receive a tax deduction for the initial contribution, but the annuity payments are taxable to you.
For more information on how you can build your legacy, please contact:
Mount Horeb Area Historical Society
Director Destinee Udelhoven, 608-437-6486
[email protected]
Mount Horeb Area Historical Society
Director Destinee Udelhoven, 608-437-6486
[email protected]