Planned Giving
| Four Financial Challenges | Planning for Estate Taxes |
| How Changes Affect an Estate Plan | What to Expect From a Will |
| A Gift Pocket Close at Hand |
What is planned giving and The Tomorrow Fund?
How can I help make a change?
Why United Way?
What are the benefits to planned giving?
Do I need to tell United Way that I dontaed a planned gift to The Tomorrow Fund?
Should I include my wish to leave a gift to The Tomorrow Fund in my will?
I don't have a lot of money, can I still contribute to The Tomorrow Fund?
How do I leave a gift in memory of a loved one?
How can I learn more about United Way or planned giving?
Four Financial Challenges
QUALITY OF PLANS CAN AFFECT QUALITY OF LIFE.
AS YOU PLAN for the future, it is important to take into account a number of common economic concerns that many of us share.
Dying too soon
In younger years we may sometimes worry about not living long enough to assure the economic security of a spouse, our children, or others who are important to us.
As a result, people often set aside savings to provide for survivors. Regardless of whether it is a savings plan, retirement account, or life insurance, this "nest egg" helps us protect those we care for most.
Living too long
The flip side is living "too long," long enough to outlive our resources. From a financial standpoint, we wonder about sufficient resources to assure economic well-being in later years.
One practical solution to this concern may be an annuity issued by a life insurance company. It can be set up to make a payment each year (or more often) to you for the remainder of your life, a survivors life, or for the lifetimes of both you and another person you name.
Economic emergencies
No matter what our age or how thorough our plans, a medical condition, an accident, or an economic emergency can rapidly deplete funds. Savings help us prepare for emergencies, along with medical, automobile, homeowners, and other types of insurance coverage.
Mental and physical disability
As life expectancies continue to increase for Americans, there comes a greater possiblity of becoming mentally and/or physically incapable of handling ones own financial affairs.
Trusts, powers of attorney, living wills, and other estate planning tools were created especially to help us maintain control over our affairs in the face of such disability.
Various charitable planning techniques may help you address these challenges. We will be pleased to share ideas with you and your advisors. Please feel free to call us.
Planning for Estate Taxes
INFLATION AND STEADY investment gains have increased the value of many peoples assets to the extent that more and more estates have become subject to estate taxes at the federal, and possibly the state, level.
The Taxpayer Relief Act of 1997 provided for a gradual increase in the amount that can be given during lifetime or at death free of gift and estate taxes. The limit for 1998 is $625,000. By 2006, the exemption equivalent reaches $1 million per person ($2 million for a married couple).
Beginning in 1999, the $10,000 annual exclusion for gifts and certain other items will begin to be indexed annually to reflect inflation. Relief is also provided to certain family businesses and farms up to a maximum of $1.3 million.
How Changes Affect an Estate Plan
DO YOUR PLANS STILL MEET YOUR NEEDS?
HAVE YOUR estate plans changed without your knowledge? Not the actual documents, of course, but through occurrences that may have reduced the effectiveness of those plans.
Changes in people. Have the needs of your heirs changed? Have there been births, deaths, or marital changes in the family?
Changes in property. If you have experienced changes in the level of your wealth, reviewing your plans may be in order.
Changes in priorities. Interests change as we go through life. You may wish to include a gift to our community by adding a gift to the United Way organization.
Changes in the law. Your attorney and other advisors keep up with federal and state law changes. Lower effective tax rates may, for example, make it possible for you to leave more for charitable purposes. Regular reviews help keep your plans up to date.
What to Expect From a Will
WHY GIVE UP THE RIGHT TO SAY WHAT BECOMES OF YOUR PROPERTY?
ITS NOT ENOUGH to leave general instructions for the ultimate distribution of your property or merely tell your wishes to family or friends. Although you may know about the desirability passing property through trusts, joint ownership, or other means, many experts still recommend using a will by itself or as the foundation of a sound plan.
An effective will can cover a variety of situations. It is important to know what a will can and cannot accomplish.
Your will can . . .
Your will cannot . . .
A Gift Pocket Close at Hand
UNITED WAY GIFTS DONT HAVE TO "RETIRE" WHEN YOU DO.
PLANNING FOR retirement has never been more important than now, and its a topic that pops up routinely in the news and in a variety of publications.
If you are retired from full-time employment, you have firsthand knowledge of such plans. And if you are contemplating retirement in coming years, you may be keeping a watchful eye on economic indicators to see how they relate to your circumstances.
Retirement fund proceeds, which may represent a substantial portion of your assets, can be viewed as an untapped source, or a new "pocket," from which to make charitable gifts, something you may not have considered before.
Giving from present income
Chances are, you already rely onor will in the futureretirement income from a combination of sources: IRAs, an employer-sponsored retirement plan, annuities, and other investments, for example.
It may be wise from a tax planning standpoint to make immediate charitable gifts from retirement plan withdrawals. These funds build free of income tax, yet become taxable when withdrawn. By giving them to your United Way organization, however, you receive a charitable deduction that can efficiently remove the funds from your income for tax purposes.
Giving "whats left"
You may also wish to include your United Way organization as a beneficiary to receive any unused assets remaining in your retirement accounts when you no longer need them.
You simply stipulate whether you wish for a entire balance, a specific amount, or a percentage of the account to become a charitable gift. Keep in mind that you can provide that a gift be made only if your other beneficiaries are unable to receive the funds. This way you can assure that your heirs future security is not jeopardized in any way.
To make a charitable designation, simply request a Change of Beneficiary form from the plan administrator (usually your employer, former employer, or a financial institution).
As always, discuss all ideas with your professional advisors before changing plans. They can advise you about different factors and help you explore gift options.
What is planned giving and The Tomorrow Fund?
We've all heard the adage, "times change, people change", or "change is enevtiable", and for the most part that is true. Babies are born, they grow up, become adults, parents and grandparents. Career paths change, even ideas and values change. However, the need to provide funding for the following will never change:
The United Way of the Greater Dayton Area has created a way in which you can help change the course of our community and enrich the lives of many for years to come through The Tomorrow Fund.
The Tomorrow Fund is our planned giving program that provides you an opportunity to make a significant impact on the futuer of our community in a very personal, individual manner. It's your thoughtful commitment to your and your family's future, the Miami Valley, and a vision for a better tomorrow.
How can I help make a change?
Participation in The Tomorrow Fund is easy! Anyone can make a gift, regardless of the amount of the gift or asset size. Planned giving is also very flexibile with giving options that include:
The choice is yours to make regarding when your figt will become active, now or in the future, and whether it will be unrestricted or restricted to a specfic area of interest.
Why United Way?
United Way has served Greater Dayton, Montgomery, Greene and Preble Counties for more than 80 years and will be here to serve our community in 80 more years. No other community organization positively affects the lives of so many people in our city than United Way.
As you know, your annual campaign dollars help the community today. In this ever changing society, new sources of funding must be developed to adapt to tomorrow's needs. Please consider donating to The Tomorrow Fund and leave a lasting legacy to our community.
What are the benefits to planned giving?
Planned giving offers many potential benefits both to you and the community. By donating to The Tomorrow Fund:
Do I need to tell United Way that I dontaed a planned gift to The Tomorrow Fund?
It is your choice, however, we would like to know in advance so that we can personally thank you for your generosity and encourage others to follow your example.
Should I include my wish to leave a gift to The Tomorrow Fund in my will?
Yes. Without a will, you lose control over your estate after death. Your estate will then be settled according to state laws and may not be as you wished.
I don't have a lot of money, can I still contribute to The Tomorrow Fund?
Yes. Regardless of your wealth, everyone can contribute to The Tomorrow Fund to help our community's future. Several ways a donor can help is leaving a percentage of their estate, property, life insurance or even a small gift to a pooled income fund that returns income to the donor.
How do I leave a gift in memory of a loved one?
Simply send cash or appreciated property identifying in whose memory or specify this in your will and inform United Way of the purpose for the gift.
How can I learn more about United Way or planned giving?
Please call Kevin Klose, Director of Major Gifts, at (937) 225-3144.
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