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PLANNED GIFTS

Making planned charitable gifts through your will, trust or other arrangement allows you to balance your personal financial goals and create a lasting legacy to achieve your charitable interests, with significant tax benefits. Your estate gift will help ensure Center on Halsted continues to build and strengthen our community in the years ahead. You may choose from a variety of planned gift arrangements, from simple bequests or beneficiary designations on retirement assets to more sophisticated forms such as charitable trusts.

Some of the options for giving through an estate plan are listed below. To discuss how an estate plan can benefit Center on Halsted, please contact the Center on Halsted Development Department at 773-472-6469 or at plannedgifts@centeronhalsted.org. We also advise that you should contact an independent financial advisor or attorney for more information on your giving options.

Bequests:

Giving to Center on Halsted through your will is one of the simplest ways to make a planned gift. A bequest is a transfer of property by will – such as cash, stocks, bonds, or real estate. Unless you direct the Center to use your gift in another way, your bequest would be deposited in the Center's endowment, which helps to ensure that the Center's programs will benefit the community for many years to come. Making a bequest is straightforward and easily executed with your attorney. In addition, a bequest to Center on Halsted can save your estate a significant sum in tax payments if the estate is subject to federal estate tax. Here are just a few types of bequests:
  • Specific Bequest: You bequeath a designated sum or specific assets to Center on Halsted.
  • Percentage Bequest: You determine the percentage of your estate that should be left to benefit Center on Halsted.
  • Residual Bequest: You direct that Center on Halsted receive all, or a stated portion, of your estate after payment of all debts, taxes, expenses, and other bequests.
  • Contingent Bequest: You name Center on Halsted as the beneficiary of your estate if others named in your will are not living at the time of your death.



Suggested Bequest Language:

Unrestricted General Bequest

I hereby leave [percentage of estate/dollar amount/residue of estate/percentage of residue] of my estate to Center on Halsted, a not-for-profit corporation in Chicago, Illinois, to be used for the benefit of the organization in such manner as the board of directors may elect.

Restricted General Bequest

I hereby leave [percentage of estate/dollar amount/residue of estate/percentage of residue] of my estate to Center on Halsted, a not-for-profit corporation in Chicago, Illinois, for the following restricted purpose:_____________________________(purpose). If at any time, it becomes impossible or impractical for my gift to be used for the above charitable purpose, the Board of Directors of the Center on Halsted shall determine a use of my gift for a purpose and in a manner that most closely meets the above charitable purpose.

If you plan on making a restricted bequest to Center on Halsted, please contact us at 773-472-6469. We can work with you to design a unique gift that will combine Center on Halsted’s needs with your wishes.

Gifts of Life Insurance:

Life insurance is a great way to make a larger gift to Center on Halsted in the future by making smaller contributions in the present. Life insurance can be used in different ways. You may choose to name Center on Halsted beneficiary of a policy or of part of a policy at any time – all you have to do is contact your insurance company. Although this does not allow an income tax deduction, an estate tax reduction is possible. Center on Halsted may also be irrevocably named beneficiary and assigned ownership of a new or existing policy. If you do so, your gift will entitle you to an income tax deduction and future premium payments will be tax deductible.

Gifts of Retirement Assets:

Because retirement plan assets are subject to heavy taxation, they are popular for charitable giving. If your IRA, TIAA-CREF, 401k or other qualified plans pass through your estate, your heirs must pay both income taxes and estate taxes (if applicable) as they receive distributions. As a tax-exempt organization, Center on Halsted can receive 100% of your retirement assets. You may name Center on Halsted as part or full beneficiary of one or more retirement plans or arrange for Center on Halsted to be an alternative or contingent beneficiary on your retirement plan.

Charitable Remainder Trusts:

A charitable remainder trust can provide income to you for life, or for a specified term of years. You create the trust through the financial institution of your choice and you may fund the trust with assets such as cash, securities or real estate. A charitable remainder trust may qualify you for a current income tax deduction as well as capital gains tax avoidance on the property used to fund the trust.

The trust pays you or another non-charitable beneficiary of your choice a minimum of 5% as income for life or for a term of years. Upon the death of the income beneficiary or the expiration of the term of years, the trust ends and the principal passes to Center on Halsted. You can often avoid capital gains tax, increase income and save estate taxes. There are two basic types of charitable remainder trusts:

Charitable Remainder Annuity Trust (CRAT) pays the named beneficiaries a fixed dollar amount of not less than 5% of the trust’s initial value. This planned giving vehicle is great if you are looking for a stable, predictable stream of income. Once the CRAT has been set up, no additional contributions can be made, and the payout rate cannot be changed.

Charitable Remainder Unitrust (CRUT) can provide you with variable income, based upon a fixed percentage of the fair market value of the trust, which is re-valued each year. You can add to your CRUT any time, and you may structure the trust to grow tax-free and defer the income until a later date if you wish. This trust vehicle is a highly flexible financial planning instrument.

Charitable Lead Trusts:

Charitable lead trusts provide current support to Center on Halsted and subsequently transfer the remaining principal back to you, or to your family members with little or no gift or estate tax. You receive a federal estate tax deduction equal to the estimated value of the annual trust payments to Center on Halsted. You can specify the amount of income to be paid from the trust, name the beneficiaries, and indicate the length of time—either a certain number of years or your lifetime.

Thank you for considering a planned gift to support Center on Halsted. We look forward to helping you create a legacy that will support our community and the programs at Center on Halsted for years to come.










 
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