Make a long-term gift to UCP of Long Island
You can make a meaningful, long-term gift that will cost little or nothing now and can create income opportunities for you and your family. There are several ways to do it:
Wills & Bequests
Did you know that if you DO NOT have a will, the government will determine the distribution of ANY and ALL assets you leave behind?
To protect your family, put your wishes in writing, and to promote a legacy of Life Without Limits for people with disabilities, please include United Cerebral Palsy of Long Island among your beneficiaries, through one of the following bequest options:
- Specific dollar bequest: “I hereby give, devise, and bequeath to United Cerebral Palsy of Long Island, a nonprofit corporation that has its principal offices in Hauppauge, NY, the sum of $ _______.”
- Percentage of Estate: “I hereby give, devise, and bequeath to United Cerebral Palsy of Long Island, a nonprofit corporation that has its principal offices in Hauppauge, NY, an amount equal to __% of the value of my estate.”
- Residuary Estate: “I hereby give, devise, and bequeath to United Cerebral Palsy of Long Island, a nonprofit corporation that has its principal offices in Hauppauge, NY, whatever remains of my estate (or __%) of whatever remains of my estate after all specific bequests have been made and after taxes, fees and other costs of administering my estate have been paid.”
- Testamentary Trust: “I hereby bequest the sum of $_______ to a testamentary trust that is to make certain payments to (name) for his/her lifetime. According to the trust document, whatever remains in this trust at his/her death is to pass to United Cerebral Palsy of Long Island.” (Note: If the testamentary trust is a qualified Charitable Remainder Trust, your estate will receive certain tax benefits not otherwise available).
- Charitable Lead Trust: “I hereby bequeath the sum of $ (amount) to a Charitable Lead Trust that is to pay __% of its fair market value annually for __ years to United Cerebral Palsy of Long Island. As per the condition contained in the trust document, whatever remains in the trust at the end of that term of years is to pass to my heirs.”
- Unencumbered Assets/Real Property: “I hereby give, devise, and bequeath to United Cerebral Palsy of Long Island, a nonprofit corporation that has its principal offices in Hauppauge, NY, the following items of which I have complete and sole ownership (list items).
Generate and/or pass income-producing assets to your heirs, while partnering with UCP of Long Island to create Life Without Limits for people with disabilities.
Charitable Remainder and Charitable Lead Trusts can be funded with:
- Appreciated securities or annuities
- Real property
- Closely held business interests
Charitable Remainder Trusts:
- Generate lifetime income at favorable rates
- Eliminate initial capital gains tax
- Create current income tax deduction
- Avoid estate tax on contributed assets
- Create Life Without Limits for people with disabilities
- Donor places assets in trust
- Donor designates at least one non-charitable beneficiary
- Trusts pay donor or indicated non-charitable beneficiary a minimum of 5% of current trust assets or fixed amount (not less than 5% of initial trust assets) annually for up to 20 years or life of non-charitable beneficiary
- Trust remainder is distributed to UCP of Long Island at the conclusion of trust duration or upon the death of non-charitable beneficiary
Charitable Lead Trusts:
- Offset gift tax on intergenerational transfer of assets
- Offset estate taxes
- Avoid tax on appreciation of transferred assets
- Enable donor to create and direct annual charitable contributions
- Donor places income producing assets in trust
- Donor establishes duration of trust and ultimate beneficiary
- Trust makes payments of a fixed amount (annuity trust) or percentage of trust principal (unitrust) on a regular basis to UCP of Long Island for term of trust
- At the expiration of the term of the trust the asset reverts back to the donor, or is transferred to the specified beneficiary
Charitable Gift Annuities
A Charitable Gift Annuity allows a donor to invest with UCP of Long Island and receive a guaranteed annual income stream for life. CGAs can be funded with cash, stock, fully paid insurance policies, real property or other assets, and may name one or two annuitants.
UCP of Long Island requires a minimum of $10,000 to establish a CGA, and that the annuitant(s) be at least 60 years of age. Payout rates conform to those published by the American Council on Gift Annuities, and will vary based on the age of the donor(s).
Utilizing life insurance as a planned giving vehicle provides a unique opportunity for a caring donor to create a much larger gift than the money/assets actually donated. There are two paths to achieving this:
- The donor gifts an “old” paid-up policy that they no longer need to UCP of Long Island (e.g., mortgage insurance, college tuition insurance)
- The donor gets a charitable tax deduction based on the value of the policy
- UCP of Long Island can hold the policy, and at the death of the donor collect the full benefit, or . . .
- UCP of Long Island can sell or surrender the policy at anytime at its current value
- The donor can take out a new policy naming UCP of Long Island as both the owner and beneficiary
- The donor annually gives UCP of Long Island the amount required for the premium, which can be taken as a charitable deduction
- UCP of Long Island in turn makes the premium payments
- UCP of Long Island can sell or surrender the policy at its cash value at any time, or hold the policy for the life of the donor and collect the full benefit
The benefit is it allows donors to leverage their contribution, creating a much larger gift than they might otherwise have thought possible. They can endow a particular project, or honor the memory of a loved one.
For further assistance, consult your attorney, financial advisor, or call Camille Schramm, Director of Development at 631-232-0015.