Why might I consider gifting assets, other than cash, to Fred Hutchinson Cancer Research Center?
Retaining your assets may be costing you. Your gift to Fred Hutchinson Cancer Research Center of appreciated assets will do more than just support cancer research programs. It can provide you with financial benefits, including:
Many investors hold appreciated securities and often are receiving low dividends. Unfortunately, even with lower capital gain tax rates, liquidating an investment can be a costly strategy.
In many cases, donating these securities to Fred Hutchinson Cancer Research Center can be a great tax planning strategy. If you have held the securities longer than a year, you can receive a charitable deduction for the donated property's full value without paying any tax or you may pay reduced tax if the securities are used to fund a gift annuity. It is possible to donate mutual funds as well as individual stocks.
Many people donate appreciated securities to establish a gift annuity or charitable remainder unitrust. This will give them increased income for the rest of their lives. Annuities pay quarterly guaranteed fixed income at attractive rates, unlike many stocks.
Almost any type of real estate may be donated: undeveloped land, farms, commercial buildings, vacation homes, and your residence.
You may make outright gifts of real estate to Fred Hutchinson Cancer Research Center or turn your real estate into a lifetime income stream by establishing a charitable gift annuity, charitable remainder unitrust or charitable lead trust. If you have owned the property for at least one year, you can avoid paying capital gain taxes. Gifts of real estate will often result in an income tax deduction equal to the fair market value of the property. If you cannot deduct the full fair market value of the gift in the first year, you may carry the balance forward for up to the next five years.
Real estate can also be gifted to Fred Hutchinson Cancer Research Center as a bequest in one's will or to establish an income stream for a child or other loved one through a testamentary charitable trust. These arrangements can also reduce estate taxes.
Life insurance needs change with time. Children become self-sufficient, mortgages are paid and investments may provide unexpected income and security. As a result, life insurance coverage may not be needed for the reason it was originally purchased.
There are several ways to use life insurance to support the work of Fred Hutchinson:
Retirement funds are typically the most taxed of any estate asset. Kept in one's estate, income tax must be paid (federal and state where applicable.) In addition, estate taxes must be paid. Taxes will be avoided if you make Fred Hutchinson Cancer Research Center beneficiary of the retirement fund. Of all your assets, a gift like this provides the most tax benefit to your estate.
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