OHS in Wills and Estates
OHS in Wills and Trusts
Making an estate gift to OHS is a meaningful way to carry forward your compassion and concern for animals. Additionally, this type of giving may help you achieve specific financial goals, such as reducing or eliminating certain tax liability.
We would be glad to discuss any planned giving option with you – in confidence and without obligation.
Gary Kish, CFRE
Vice President, Legacy Gifts & Strategic Initiatives
(503) 416-2988 phone
Perhaps the most straightforward planned giving option is to make a bequest in your will. Regardless of your age or financial status, a will is essential to ensure that your assets are distributed according to your wishes instead of the arbitrary laws of the state in which you live.
Bequests made through your will may take various forms:
- Specific Bequest: Directs a specific dollar gift or property to pass to OHS.
- Percentage Bequest: Designates a percentage of the total value of the estate as a gift to OHS.
- Residual Bequest: Directs that OHS receive the remainder of the estate, or a portion of the remainder, after all expenses and other bequests have been made.
Any bequest to OHS automatically makes the donor eligible for the Friends Forever program, which assures the care for your surviving pets.
A bequest to OHS is not subject to Federal or estate taxes, and there’s no limit on the amount of the deduction. Most importantly, your bequest to OHS will help ensure the organization’s ability to provide care and protection for animals in future years.
Naming OHS as a Beneficiary
If you have a life insurance policy that is no longer needed to provide for dependents, consider making OHS the beneficiary. This may enable you to make a significant gift to OHS without using any of your estate’s capital. A further option is to make OHS both the beneficiary and owner of a paid-up policy. Doing so will earn you an immediate tax deduction equal to the policy’s cash value. Contact the policy’s issuing agent for instructions.
Some assets, such as IRAs, Keogh Plans, and other qualified retirement plans, do not pass directly through your will and require you to name a beneficiary. Consider making OHS a full or partial beneficiary. Such plans can be excellent choices for charitable gifting because they are taxed more heavily than other assets—sometimes greater than 60 percent. However, by making OHS the beneficiary, the full value of the account will pass to OHS to be used to benefit the animals.
A relatively easy planned giving option is to buy a Certificate of Deposit (CD) at your local bank and name OHS as the beneficiary, payable-on-death. The CD can remain on deposit earning interest until the holder’s death, then OHS would receive its value. Make sure the CD you buy automatically rolls-over and maintains the beneficiary designation.
Gifts of Property/Real Estate
Gifts of appreciated property can be given to OHS through a donor’s will or living trust. The donor would receive an estate tax charitable deduction for the full value of the property; however, a qualified appraisal (obtained no earlier than 60 days before you make the gift) is necessary to substantiate your income tax deduction.
Charitable Remainder Trusts
A charitable remainder trust is one of the more complex estate planning options but provides the donor greater flexibility. CRT’s can be a very good choice for those who own significantly appreciated assets (such as rental property) and want to receive income for life. The donor transfers the asset to the trust, where it is sold, avoiding capital gains tax. The proceeds are invested with the donor or other beneficiary receiving payments for life or a
set term. At the end of the trust’s life, the remaining principal is gifted to OHS.
To set up a Charitable Remainder Trust, please consult your attorney or estate planner.
Charitable Lead Trusts
This type of trust is opposite of the Charitable Remainder Trust. The donor agrees to give an asset to OHS for a set number of years. At the end of the term, the asset is then transferred to specified family members at a reduced gift and estate tax rate. A Charitable Lead Trust can be set up during your lifetime or through your estate plans. While the trust will not provide you with an immediate income tax deduction, you can exclude the trust’s income from your own income, thereby reducing your taxes.
A Charitable Lead Trust may make sense for donors who exceeded the annual limits on income tax deduction for charitable gifts. To set up a Charitable Lead Trust, please consult your attorney or estate planner.
Making OHS the Successor Interest of a Contract
Perhaps you’re receiving payments from the sale of a business or real estate or are receiving royalties? You may be able to designate OHS as the successor interest to receive any payments that continue after your death.