National Corvette Museum
PLANNED GIFTS
Planned gifts are special gift provisions outlined in your will or gifts of an asset providing income, a charitable income tax deduction, and the opportunity to avoid capital gains and inheritance taxes.
Planned giving vehicles such as bequests, life insurance, retirement plans, charitable gift annuities, and charitable remainder trusts not only ensure you the opportunity to make a substantial contribution to the Museum, but in addition may provide income and estate tax benefits to you and/or your heirs.
The
Zora Arkus-Duntov Society
was formed to honor those who recognize the importance of investing in the National Corvette Museum and have included the Museum in their estate plans.
We welcome the opportunity to discuss confidentially your planned giving interests and investment in the National Corvette Museum - contact us at 1-800-53VETTE or email giving@corvettemuseum.com
BEQUESTS
A bequest is a convenient way to provide for your family, others and the future of the Museum in your will. This can be accomplished in the following ways: through a specific percentage, dollar amount or asset designated to the Museum; or after allocations have been distributed to beneficiaries, the remainder or a designated portion may be then gifted to the Museum.
The National Corvette Museum can be included in your original will or at a later point, added by your attorney.
LIFE INSURANCE
Donating your life insurance could be a wonderful way to fulfill your desire to support the Museum. Perhaps you purchased a life insurance policy to provide financial security for the household, dependents or a business partnership, and you have determined you no longer need it for this purpose.
For a gift of a paid-up policy, the tax deduction is the cost of replacing the coverage with a comparable policy. The deduction cannot be greater than your net investment in the policy (total premiums paid less any dividends received). To qualify for the federal charitable deduction on a gift of a new or existing policy, please make certain to name the National Corvette Museum as owner and beneficiary of the policy.
RETIREMENT PLANS
Did you know retirement accounts are often exposed to income and estate taxes, at a combined marginal rate that could rise to 65 percent or even higher on large, taxable estates? Many of these taxes can be avoided or reduced through a carefully planned charitable gift. Qualified retirement plans are those that receive favorable income tax treatment during an employee's lifetime. No income tax is due on the funds as contributed, and no income tax is due on the earnings and appreciation while in the plan. You pay taxes on the funds only when you receive them.
Generally, the undistributed balance of qualified retirement plans is fully includable in your gross estate for estate tax purposes. Since the funds in retirement accounts usually represent deferred compensation that has not been subject to income tax, giving the accounts to individual heirs exposes the funds to income taxes. Your retirement dollars can be seriously depleted by this double taxation.
To preserve your retirement assets after your lifetime, consider the benefits of using them in a different way. You can designate the National Corvette Museum as a beneficiary of your IRAs, Keogh plans, 401(k) plans or additional qualified retirement plans to achieve a charitable tax deduction, avoid estate taxes, and leave a legacy at the Museum.
CHARITABLE GIFT ANNUITY
Did you know that your gift which the Museum will receive years from now is still tax deductible this year and pays income for life?
The charitable gift annuity allows you to make a tax deductible gift using cash or securities. With a simple contract, you or your designated beneficiary will also receive a supplemental annual income with a fixed payment guaranteed for life before the Museum ever accesses the balance.
Dependent upon your age, the rate is often higher than the interest made from certificates of deposit. In addition to the satisfaction of making a gift to the Museum, you receive the following advantages: tax deduction savings, partial tax-free income, and possible capital gains tax savings.
CHARITABLE REMAINDER TRUST
The charitable remainder trust allows you to make a tax deductible gift using various gift vehicles (i.e. cash, securities, etc.) with the remainder left to benefit the National Corvette Museum at the termination of the trust. You or your designated beneficiary will also receive a supplemental annual income with a fixed or variable rate payment for life or a set term of years.
There are two types of charitable remainder trusts: the annuity trust and the unitrust.
The annuity trust pays a fixed amount to the donor or beneficiary. Additions are not permitted to this trust, although they can be accomplished by creating other trusts. The unitrust is recalculated annually based on the unitrust's asset value. Additions are permitted to this trust.
Dependent upon your age, the rate is often higher than the interest made from certificates of deposit. In addition to the satisfaction of making a gift to the Museum, you receive the following advantages: tax deduction savings, partial tax-free income, and possible capital gains tax savings.
IRA ROLLOVER PASSES
The Emergency Economic Stabilization Act of 2008, the main feature of which is the bailout package, also extends certain portions of the Pension Protection Act of 2006 that expired on 12/31/2007. The centerpiece of the legislation from a gift planning perspective is the IRA Rollover.
This law provides that, in each of the years 2008 and 2009, an owner of a traditional or Roth IRA may instruct the trustee to distribute directly to a public charity up to $100,000 without the distribution being included in taxable income, and that distribution will count toward the IRA owner's mandatory withdrawal amount.
To qualify for IRA rollover treatment, the donor must direct the IRA manager to transfer funds directly to a charity. A withdrawal followed by a contribution will still have to be reported as income. The donor must be at least age 70½ and the donee must be a tax-exempt organization to which deductible contributions can be made. Donor-advised funds and supporting organizations are not eligible.
This law does not include the terms of proposed legislation such as the Public Good IRA Rollover Act. Therefore, the gift must be outright; rollovers to a planned gift, such as a gift annuity or a charitable remainder trust, do not qualify. Similarly, outright distributions to a charity from employer-sponsored retirement plans, such as Simple IRAs, 401(k)s, and 403(b)s, do not qualify. Also note that IRA rollovers may be includable in a donor's income for state and local tax purposes and may not earn an offsetting charitable deduction, depending on state and local law.
