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Legacy Giving

A carefully planned gift empowers you to support and enhance the future of the Kellogg-Hubbard Library exactly as you wish.

What is a legacy gift? A legacy gift is something you can give to the library to help sustain it after you have passed away. It’s usually part of your will or estate plan. This gift can be money, property, or even a valuable possession. It’s a way to leave a lasting impact and support what is important to you, even after you’re gone.

Who can make a legacy gift? Anyone can! Legacy gifts are not only for the very wealthy. The greatest benefit of planning your gift now is the ability to maintain your current standard of living while ensuring you can support and enhance the future of the Kellogg-Hubbard Library. You may also receive significant tax benefits from your gift.

How will my legacy gift be used? Donors are encouraged to make unrestricted gifts in order to allow the Library to make decisions most advantageous at the time of receipt. You may specify that gifts are given to the endowment. All donations are considered in accordance with the Library’s Gift Acceptance Policy. If you would like to make a donation with restrictions, it must be pre-approved by the Library

What are my options? There are various types of planned gifts to choose from. Below you’ll find the most common types. We also would welcome a conversation with you about your choices. Contact Colleen Beamish at [email protected] to discuss further.

Options for Making a Planned Gift

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.

Logistics for Gifts in Your Will

We want to be sure we can carry out your wishes. To ensure your bequest comes to the Kellogg-Hubbard Library, include our full legal name and our federal tax identification number in any documents about your legacy gift:

Legal Name & Address:
Kellogg-Hubbard Library
135 Main Street
Montpelier, VT 05602

Federal Identification Tax Number:
03-0181056

Sample Legal Language

I hereby give, devise and bequeath to the Trustees of the Kellogg-Hubbard Library dollars ($ ), or percent ( %) of my estate, to be used for the benefit of Kellogg-Hubbard as the Trustees thereof may direct.

Every person who is preparing an estate plan should seek the advice of their attorney and financial advisor before executing a will or living trust. To learn more about making a planned gift to the Kellogg-Hubbard Library contact Colleen Beamish, Development Coordinator at 802-223-3338 ext. 211