Legacy Giving

Bequests

Bequests are the most popular way to make a legacy gift. Donors typically like bequests because they are easy to understand and do not require the donor to part with assets during their lifetime. This provides peace of mind knowing that assets are available to satisfy unforeseen expenses such as medical costs. Bequests can be for any dollar amount or for a percentage or residual of an estate, which means that any patron or community member, regardless of age and net worth can leave a gift to the KHL in their will or living trust.

Advantages:

• Flexibility to change your mind
• Continued access to your money

Next Step:

Add a written statement to your will or living trust, which states a specific amount of money or percentage of your estate to be given to KHL.

Retirement Assets and Life Insurance

For many individuals, retirement plan assets represent the single largest asset in their portfolios. Similar to a bequest, it is easy to allocate these funds to KHL.

A major benefit of this giving option is that neither you and your heirs nor your estate will pay income taxes on the distribution of the assets. It is also reassuring to know that since non-profits do not pay income tax, the full amount of your IRA will directly benefit KHL. Additionally, choosing this option rather than a bequest will allow you to leave the entirety of your will to your heirs while still supporting the Library.

Another option is to name KHL as the owner or beneficiary of your life insurance policy. This affords you the opportunity to make a gift at a sizeable face value for a minimal outlay of cash. Donors may give an existing fully paid policy.

Advantages:

• Does not require changing will/trust
• 100% of funds available to KHL, without incurring any tax for your other beneficiaries

Next Step:

Request a beneficiary designation form from your retirement plan administrator or life insurance company and name Kellogg-Hubbard Library as beneficiary or owner of the policy.

Charitable Gift Annuities

A charitable gift annuity (CGA) is a contract where the donor makes a gift to benefit KHL, receives a partial tax deduction, and a fixed stream of income for the rest of their life.

KHL works with the Vermont Community Foundation (VCF) to set up this planned gift. For this giving option, you would make a minimum $25,000 donation to VCF for which you would receive a charitable deduction and lifetime income when you choose to accept it. You can name KHL as beneficiary of the CGA, and select the investment pool option that is best suited for you. At the time of your passing, the principal will go to a fund for KHL at VCF.

Advantages:

• Income stream for life
• Immediate tax deduction based on life expectancy and anticipated income stream
• Gift amount will grow over time

Next Step:

Contact the Vermont Community Foundation at [email protected] or (802) 388-3355 opt. 5 and let them know you would like to set up a CGA to support KHL

Charitable Remainder Trust

A charitable remainder trust (CRT) is a “split-interest” giving option that is very similar to a charitable gift annuity with a few key differences: You make a large donation to an irrevocable charitable trust. Depending on how it is set up, you (or any beneficiary you name) receive a set percentage of the trust’s value on a specified basis, for example, 5% annually. After a predetermined period or the death of the last known beneficiary, any remaining CRT assets will be distributed to KHL.

CRT’s will likely require a greater minimum contribution to establish than a CGA, but also offer other benefits such as the opportunity to manage the trust yourself.

Advantages:

• Income stream for the donor for a specified amount of time
• Partial tax deduction plus a reduction in capital gains, gift, and estate taxes

Next Step:

Contact your financial advisor to discuss setting up a charitable remainder trust to support the Kellogg-Hubbard Library.