Leave a Lasting Legacy
It is often said that a simple act of kindness can change the course of a lifetime. By including EPI in your estate planning today, you can help us make a difference in countless lives of people with developmental disabilities, brain injuries and epilepsy for years to come. Planned giving leaves a lasting legacy. It may also benefit you by enabling you to receive incremental income and/or gift or estate tax deductions.
Following are several types of planned giving options. To learn more about the right one to fit your personal circumstances and financial goals, as well as other ways you can support EPI, please contact Lorena DeLancey, VP Advancement at ldelancey@epiny.org or 585-442-6490, ext. 2211. Whatever option you choose, you can be confident knowing that your tax-deductible gift will be much appreciated and will have a lasting impact.
Important Information
Legal name: Epilepsy-Pralid Inc. dba Empowering People’s Independence
Federal Tax ID Number: 16-1422825
Address: 1650 South Avenue, Rochester, New York 14620
Contact
We would be pleased to discuss, in confidence, ways in which you may support EPI. If you have any questions, please contact Lorena DeLancey, VP of Advancement, at ldelancey@epiny.org or 585-442-6490, ext. 2211.
A Bequest in Your Will
A charitable bequest from your will or living trust can help combine philanthropy with tax benefits. To make a bequest to EPI, simply leave instructions in your will. Also be sure your wishes are well known to your family or a lawyer. The ability to change the beneficiaries of your charitable bequests underscores the importance of naming an executor who is thoroughly familiar with, and supports, your wishes.
There are four types of bequests, and many wills contain more than one type:
- General bequests are gifts of property taken from an estate’s general assets.
- Demonstrative bequests are gifts that come from an exact source, such as a bank account.
- Specific bequests are gifts of property including art, jewelry, a car or other assets such as securities.
- Residuary bequests are gifts made after all of the debts and expenses are paid, and other bequests are made. These are typically a percentage of the remainder (in some cases a share) of your estate.
The Difference Between Unrestricted and Restricted Gifts
When planning your bequest, consider how you would like your gift to be used to benefit EPI – whether unrestricted in purpose or restricted to a specific program or purpose. Unrestricted gifts are used at EPI’s discretion, whenever and wherever the needs are the greatest. This type of bequest is extremely valuable because it allows our organization the flexibility to plan for and meet our future needs. With a restricted gift, you designate where your donation goes. If you are considering a restricted bequest, we encourage you to speak with a member of our Developmental Department for guidance. You should also reach out to your financial advisor or attorney.
Following is a sample email to help start a conversation with the attorney overseeing your estate planning. For further assistance with writing an email, please contact EPI directly at:
Developmental Department
Phone: 585-442-6420
Email: ldelancey@epiny.org
(SAMPLE EMAIL)
Dear (Name of Attorney),
I am in the process of establishing a charitable gift in my estate plan to be bequeathed to Empowering People’s Independence (EPI). The details for this gift are:
Gift value: (Amount or Percentage)
Legal name: Epilepsy-Pralid Inc. dba Empowering People’s Independence
Federal Tax ID Number: 16-1422825
Address: 1650 South Avenue, Rochester, New York 14620
“I (Insert Name) give, devise and bequeath to Epilepsy-Pralid Inc. dba Empowering People’s Independence, a New York charitable corporation and a qualified 501(c)(3) organization, located in Rochester, New York, Federal Tax ID Number: 16-1422825, the sum of (Insert Dollar Amount) (or % of my estate), (or other personal property herein described) to support Empowering People’s Independence greatest priorities in support of people with developmental disabilities, brain injuries and epilepsy.
Thank you for your assistance with this matter.
Sincerely,
(Insert Name, Address and Phone Number)
Designating EPI As a Retirement Account Beneficiary
Making EPI one of the beneficiaries or the sole beneficiary on your retirement account is an easy and powerful way to support our organization without changing your will or living trust. Plus, retirement assets that pass directly to EPI are preserved 100% free of tax and your estate is also eligible for a charitable tax deduction. For more information, consult with your financial or tax advisor.
Gifting a Life Insurance Policy
Gifting a life insurance policy to EPI has its advantages – and it’s as simple as adding EPI as your beneficiary. Policy ownership transfers are considered donations and any charitable donations can significantly reduce your taxable estate, or the assets you own that can be taxed after you pass away. You can also deduct any premiums you pay as part of the donation and even claim a further deduction for some of the policy’s value, generally a percentage of your adjusted gross income. Ask your insurance agent for more details.
Donating Real Estate
Although gifts of real estate may require a team of experts to execute, they can provide significant benefits. They allow you to avoid paying capital gains tax on the sale of the real estate; receive a charitable income tax deduction based on fair market value of the property; and increase your income for retirement with a charitable gift annuity or charitable remainder trust. In addition, a gift of real estate to EPI can make a greater philanthropic impact and leave a lasting legacy for you and your family. Since real estate transactions can be complex, consult with your tax advisor or attorney.
Charitable Gift Annuities
A charitable gift annuity is a contract under which a 501(c)(3) qualified public charity such as EPI, in return for an irrevocable transfer of cash or other property, agrees to pay the annuitant(s) a lifetime income. The maximum number of annuitants is two, and payments can be made jointly or successively. The charity determines the payout amount based on actuarial factors.
Unlike a charitable remainder trust, part of the gift may be used immediately by the charity, with the remainder of the gift invested in an account to provide for the annuitant’s income stream. Be sure to work with your tax advisor to confirm that a charitable gift annuity will provide the expected results with respect to the income tax consequences of the gift.
Retirement Account Distributions
An IRA is an account set up at a financial institution that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis. Typically, a donation from an IRA is taxed as ordinary income. However, if you are 70 ½ years of age or older, you are eligible to make a direct, tax-free contribution to EPI. You may transfer up to $100,000 per year directly from an IRA to our organization without paying income tax on the transaction. If you file a joint tax return, your spouse can also make a charitable contribution of up to $100,000, allowing you as a couple to exclude up to $200,000 of your retirement savings from income tax. If you donate more than the maximum allowable amount, it is considered income and could be subject to income tax. Qualified charitable contributions must be made by December 31st each year in order to exclude that amount from taxable income. Charitable contributions can only be made from IRAs, not 401(k)s or similar types of retirement accounts. For more details about IRA donations, talk with your tax or financial advisor.
There are additional complex planned giving options to consider that may provide substantial financial benefits.
Charitable Remainder Trusts
Charitable remainder trusts are irrevocable trusts that let you donate assets to a charity such as EPI and draw annual income for life or for a specific time period. In a charitable remainder trust, you transfer property, cash or other assets into an irrevocable trust. The trust pays income to at least one living beneficiary – and payments continue for a specific term of up to 20 years or the life of one or more beneficiaries. At the end of the payment term, the remainder of the trust passes to the qualified U.S. charitable organizations. The remainder donated to charity must be at least 10% of the initial net fair market value of all property placed in the trust.
Since charitable remainder trusts are irrevocable, assets that go in can’t be taken back. However, these trusts can offer many benefits, including helping you plan major donations to charities you support; providing a predictable income for life or over a specific time period; enabling you to defer income taxes on the sale of assets transferred to the trust and allowing you a partial charitable deduction based on the value of the charitable interest in the trust. Also be sure to consult with your attorney or tax advisor before engaging in a charitable remainder trust.
Disclaimer The material presented on this Planned Giving section of the website is not offered as legal or tax advice. The purpose of this website is to provide general gift and estate planning information. Prospective donors are urged to consult their legal counsel and personal tax and financial advisors concerning the specific consequences of making gifts to EPI. We would be pleased to discuss, in confidence, ways in which you may support EPI.