28050 Grand River Ave.
Farmington Hills, MI 48336
Phone: (248) 471-8000
Farmington Hills, MI 48336
Phone: (248) 471-8000
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Examples of planned gifts include but are not limited to:
Testamentary Bequests
A bequest is a transfer of wealth that occurs at the time of a donor's death. Such transfers may be made by means of a will or a trust. Bequests can take several forms such as:
Gifts of Appreciated Securities
The benefits of gifting an appreciated security, such as stock held for more than 12 months, are significant both to Botsford and to the donor. The donor can avoid tax consequences on the appreciation and deduct the full fair market value of the security at the time of the gift.
Gifts of Retirement Account Assets
Most people are surprised to learn that there is a heavy taxation, due to both income and estate taxes, on retirement accounts (401(k), IRA, Keogh or other similar investments) if the assets are passed to someone other than your spouse. To avoid this pitfall, you can designate Botsford as a beneficiary to receive all or a percentage of your retirement account upon your death. Your estate may receive a charitable deduction for the value of the assets distributed to Botsford Hospital and, because Botsford Hospital is a tax-exempt charity, it is possible the donation may be free of any income tax obligation.
Gifts of Charitable Gift Annuities
Charitable gift annuities (CGAs) are one of the easiest and most popular forms of life income gifts. It involves a simple agreement whereby The Botsford Foundation accepts a gift of cash, securities, or property and agrees to pay a specified, fixed dollar amount to the annuitant (the donor or another beneficiary).
The fixed amount is set by the American Council on Gift Annuities and is based on the annuitant's age. Because the gift is irrevocable, The Botsford Foundation maintains control of the gift vehicle and assumes responsibility for paying income for the lifetime of each annuitant.
Gifts of Charitable Remainder Trusts
A charitable remainder trust allows an individual to irrevocably transfer assets into a trust. The trust pays income to the donor or other beneficiaries during their lifetime or for a set number of years, and the remainder goes to a qualified nonprofit such as The Botsford Foundation when the trust terminates.
A charitable remainder trust is a good strategy for an appreciated security with a low cost basis producing little or no income. Real estate is also an asset that can be used to fund a charitable remainder trust.
Gifts of Life Insurance
When a donor names The Botsford Foundation as the beneficiary of a life insurance policy, the donor is providing a substantial gift to health care in this community at a minimal cost. If an individual owns a fully paid policy that is no longer needed, the beneficiary status and ownership can be transferred to The Botsford Foundation and, in most cases, the donor will receive a charitable tax deduction. Or, a new policy may be purchased that names The Botsford Foundation as the beneficiary. Premiums for a policy that names Botsford as the beneficiary are eligible as a charitable contribution.
If you would like to speak with a financial advisor about the process and benefits to you as donor of a planned gift, the Foundation would be pleased to schedule an appointment for you. We are always available to meet with your personal advisor as well.
