Planning an Estate Gift

Become a member of our planned giving club: The Milneburg Society

We recommend seeking the advice of your financial advisor or legal counsel when considering an estate gift to Milne.

Milneburg: Lighthouse is now part of University of New Orleans

Remembering Alexander Milne Developmental Services with a planned estate gift ensures a lasting impact on our mission. There are many ways to plan estate gifts, including:

• Wills and Living Trusts
• Beneficiary Designations
• Charitable Gift Annuities
• Charitable Remainder Trusts
• IRA Charitable Rollover
• Charitable Lead Trusts
• Real Estate
• Memorials and Tribute Gifts
• Endowed Gifts

We are always humbled by the amount of support we receive from the Milneburg Society. Every gift helps us continue on our journey in providing supported living and other services to the developmentally disable residents of Louisiana. If you have any questions please free to reach out. Also, don’t forget, there are other waysthat you can offer a helping hand to the Milne community beyond joining the Milneburg Society.

A Gift in Your Will or Living Trust

The simplest estate gift is to include Milne in your will or living trust. This is known as a charitable bequest.

By including a bequest to Milne in your will or living trust, you are ensuring that we can continue our mission for years to come. You can identify Milne as the recipient of a particular asset or as the recipient of a percentage of your estate.

You can use the following assets to fund a bequest:

• Cash
• Appreciated Securities
• Real Estate
• Tangible Personal Property
• Closely Held Stock

 

Beneficiary Designations

A beneficiary designation allows Milne to receive the proceeds of any number of your lifetime investments and supports Milne long after your lifetime. Name Milne as a beneficiary to receive assets such as retirement plans and life insurance policies after you’re gone. You simply fill out a form that is entirely separate from your will—which makes this approach an easy way to give.

Not only is it an easy way to give, but it’s also flexible. You can review and adjust beneficiary designations anytime you want.

 You can name us beneficiary of the following assets:

• Retirement Plan Assets
• Life Insurance
• Commercial Annuities
• Bank Accounts, Certificates of Deposit or Brokerage Accounts

Charitable Gift Annuities

Charitable annuities allow you to maintain financial security while supporting Milne. A charitable gift annuity provides you with fixed payments for life. You receive a variety of tax benefits from charitable annuities, including federal income tax charitable deductions if you itemize.

You can use the following assets to fund a charitable gift annuity:

• Cash
• Appreciated Securities
• Real Estate
• Tangible Personal Property
• Closely Held Stock

 

Charitable Remainder Trusts

A charitable remainder trust is an irrevocable gift that provides annual income for you and allow the remainder income to go to Milne. If you have built up a sizeable estate and are also looking for ways to receive reliable payments, you may want to check out the advantages of setting up a charitable remainder trust.

Benefits of a charitable remainder trust include:

• Potential for a partial charitable income tax deduction
• Potential for increased income
• Up-front capital gains tax avoidance

There are two ways to receive payments with charitable remainder trusts:

The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.

The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.

You can use the following assets to fund a charitable remainder trust:

• Cash
• Appreciated Securities
• Real Estate
• Tangible Personal Property
• Closely Held Stock

IRA Charitable Rollover

If you are 70½ years old or older, you can take advantage of a simple way to benefit Alexander Milne Developmental Services and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity such as ours without having to pay income taxes on the money.

This law no longer has an expiration date, so you are free to make annual gifts to our organization this year and well into the future.

Why Consider This Gift?

• Your gift will be put to use today, allowing you to see the difference your donation is making.
• You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
• If you have not yet taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.

Charitable Lead Trusts

A charitable lead trust provides gifts to Milne for a specified irrevocable term. At the end of that term, the original assets used to fund the trust revert back to you or your designated beneficiary. This method of giving allows you to support Milne and still retain your assets for your future beneficiaries.

There are two ways charitable lead trusts make payments:
A charitable lead annuity trust pays a fixed amount each year to Milne and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust’s assets go up in value, for example, the payments to Milne go up as well.

Learn How to Fund It

You can use the following assets to fund a charitable lead trust:

• Cash
• Appreciated Securities
• Real Estate
• Closely Held Stock

Real Estate

Donation of real estate allows you to have a big impact on Milne’s mission without donating cash assets. Such a generous gift helps us continue our work for years to come and also helps you. When you give us appreciated property you have held longer than one year, you qualify for a federal income tax charitable deduction. You avoid paying capital gains tax. And you no longer have to deal with that property’s maintenance costs, property taxes or insurance.

Another benefit: You don’t have to hassle with selling the real estate. You can deed the property directly to Milne or ask your attorney to add a few sentences in your will or trust agreement.

Ways to Give Real Estate

An outright gift. When you make a gift today of real estate you have owned longer than one year, you qualify for a federal income tax charitable deduction equal to the property’s full fair market value. This deduction lets you reduce the cost of making the gift and frees cash that otherwise would have been used to pay taxes. By donating the property to us, you also eliminate capital gains tax on its appreciation.

A gift in your will or living trust. A gift of real estate through your will or living trust allows you the flexibility to change your mind and the potential to support our work with a larger gift than you could during your lifetime. In as little as one sentence or two, you can ensure that your support for Milne continues after your lifetime.

A retained life estate. Perhaps you like the tax advantages a gift of real estate to our organization would offer, but you want to continue living in your personal residence for your lifetime. You can transfer your personal residence or farm to Milne but keep the right to occupy (or rent out) the home for the rest of your life. You continue to pay real estate taxes, maintenance fees and insurance on the property. Even though Milne would not actually take possession of the residence until after your lifetime, since your gift cannot be revoked, you qualify for a federal income tax charitable deduction for a portion of your home’s value.

A deferred charitable gift annuity. Are you tired of the hassles of maintaining your property such as paying taxes, utilities and repair bills? Consider donating the property to Milne in exchange for reliable payments for life for you (and someone else, if you choose). When you arrange a charitable gift annuity, you receive a federal income tax charitable deduction in the year you set up the gift annuity when you itemize on your taxes. If you use appreciated real estate to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy. A gift of unmortgaged property to fund a deferred gift annuity is preferable and generates the greatest tax benefit.

A bargain sale. Want to sell us your property for less than the fair market value? A “bargain sale” may be the answer. When you make a bargain sale, you sell your property to our organization for less than what it’s worth. The difference between the actual value and the sale price is considered a gift to us. A bargain sale can be an effective way to dispose of property that has increased in value, and it is the only gift vehicle that can give you a lump sum of cash and a charitable deduction (when you itemize) at the same time.

A charitable remainder unitrust. You can contribute any type of appreciated real estate you’ve owned for more than one year, provided it’s unmortgaged, in exchange for an income stream for life or a term of up to 20 years. The donated property may be a residence (a personal residence must be vacant upon contribution), undeveloped land, a farm or commercial property. Real estate works well with only certain variations of charitable remainder trusts. Your estate planning attorney, who will draft your trust, can give you more details.

A charitable lead trust. This gift can be a wonderful way for you to benefit Milne and simultaneously transfer appreciated real estate to your family tax-free. You should consider funding the charitable lead trust with real estate that is income-producing and expected to increase in value over the term of the trust.

A memorial or endowed gift. A gift of real estate may be a perfect way to honor your loved one in perpetuity. When you make an endowed gift of real estate, your contribution is invested with and becomes part of our endowment. An annual distribution is made for the purpose you designate. Because the principal remains intact, the fund will generate support in perpetuity.

A donor advised fund. When you transfer real estate to your donor advised fund, you avoid capital gains taxes and qualify for a federal income tax deduction based on the fair market value of the property when you itemize on your taxes.

Memorials and Tributes

If you have a loved one who has been impacted by Alexander Milne Developmental Services, establishing a memorial or tribute gift is a meaningful way to honor your loved one or celebrate a special occasion such as a birthday while supporting the work of our mission. Your memorial or tribute gift will be a lasting tribute to your loved one and make a difference in the lives of those we serve.

You can create a memorial gift using the following assets:

• Cash
• Appreciated Securities
• Real Estate
• Tangible Personal Property

Endowed Gifts

An endowment gift to Alexander Milne Developmental Services today provides a brighter picture for our future. When you donate to our endowment, you give a gift with both immediate and long-term benefits.

Here’s how it works: Endowment donations are invested. A portion of the annual income from the investment is used to address immediate needs at Milne. The remaining funds are reinvested to ensure indefinite support.

You can create an endowed gift using the following assets:

• Cash
• Appreciated Securities
• Real Estate
• Tangible Personal Property

Cash

One of the easiest and most common ways for you to support Alexander Milne Developmental Services is with a gift of cash. Cash can be used to support our work in the form of:

An outright gift. By making a cash gift by check, credit card or money order today, you enable us to meet our most urgent needs and carry out our mission on a daily basis. You will have the opportunity to see your generosity in action and will also receive a federal income tax charitable deduction, when you itemize.

A payable on death (POD) account. A POD bank account or certificate of deposit names one or more persons or charities as the beneficiary of all funds once you, the account owner, pass away. The beneficiary you name has no rights to the funds until after your lifetime. Until that time, you remain in control and are free to use the money in the bank account, change the beneficiary or close the account.

A gift in your will or living trust. Through a gift in your will or living trust, you can support Milne with a specific amount of money or a percentage of your total estate. This type of gift allows you the flexibility to change your mind at any time.

A charitable gift annuity. One of the most common ways to fund this gift that supports Milne and provides you and/or a loved one with fixed payments for life is with cash in the form of a check. A charitable gift annuity typically works well for those 60 and older.

A charitable remainder trust. Cash is the easiest and least complicated way to fund a charitable remainder trust. Oftentimes, it can provide the necessary liquidity to provide for payments to the income beneficiary when the trust is funded with hard to sell assets.

A charitable lead trust. You may always use cash to fund a lead trust. Oftentimes, lead trusts are funded with cash in addition to stock or real estate.

Memorial and tribute gifts. If you have a friend or family member whose life has been touched by Milne, consider making a gift to us in his or her name.

An endowed gift. Create an endowment or contribute to one that is already established to ensure that your support of Milne will last forever.

Appreciated Securities

Securities and mutual funds that have increased in value and been held for more than one year are one of the most popular assets to use when making a gift to Alexander Milne Developmental Services. Making a gift of securities or mutual funds to us offers you the chance to support our work while realizing important benefits for yourself.

When you donate appreciated securities or mutual funds you have held more than one year to us in support of our mission, you can reduce or even eliminate federal capital gains taxes on the transfer. You may also be entitled to a federal income tax charitable deduction based on the fair market value of the securities at the time of the transfer.

Securities are most often used to support our work in the form of:

An outright gift. When you donate securities to Milne, you receive the same income tax savings that you would if you wrote us a check, but with the added benefit of eliminating capital gains taxes on the transfer, which can be as high as 20 percent. Making a gift of securities to support our mission is as easy as instructing your broker to transfer the shares or, if you have the physical securities, hand-delivering or mailing the certificates along with a stock power to us in separate envelopes. (Using separate envelopes safeguards your gift—the certificates will not be negotiable without the stock power.)

A transfer on death (TOD) account. By placing a TOD designation on your brokerage or investment account, that account will be paid over to one or more persons or charities after your lifetime. It is not necessary for the TOD designation to transfer all of the account solely to charity—you can designate a certain percentage of the account. With a TOD account, the beneficiary you name has no rights to the funds until after your lifetime. Until that time, you are free to use the money in the brokerage account, to change the beneficiary or to close the account.

A gift in your will or living trust. If you aren’t ready to give up these assets during your lifetime, a gift of securities through your will or living trust allows you the flexibility to change your mind at any time. You can continue to receive dividends and participate in shareholder votes, and the securities are still yours if you need them for other expenses. In as little as one sentence you can ensure that your support for Milne continues after your lifetime.

A memorial gift. If you have a friend or family member whose life has been touched by Milne, consider making a gift to us in his or her name.

An endowed gift. Create an endowment or contribute to one that is already established to ensure that your support of Milne will last forever.

A charitable gift annuity. Funding a gift annuity with appreciated securities or mutual funds will not only provide you with reliable payments for life and allow you to support our work, but it can offer numerous financial benefits. First, your annuity payments are often more than the dividends you would receive each year from the securities. Second, you will receive a federal income tax charitable deduction (when you itemize) in the year the gift is made and eliminate part of the capital gains tax you would have paid if selling the securities.

A charitable remainder trust. Highly appreciated securities are one of the best ways to fund a charitable remainder trust. You may be reluctant to sell such assets directly because of the tax you would pay on the gain; however, if the assets were transferred to a charitable remainder trust, the assets can be sold without incurring the capital gains tax. The trustee can then reinvest the proceeds in order to secure a higher current income yield.

A charitable lead trust. Rapidly appreciating assets such as stocks are a great way to fund a charitable lead trust. The assets transferred to the lead trust are frozen in value for transfer-tax purposes at the time of funding. At the end of the trust’s term, all appreciation that takes place in the trust will pass tax-free to your heirs.

Tangible Personal Property

Did you realize that valuable antiques, stamp and coin collections, works of art, cars, boats, and other personal property can be used to support our work? Your treasures can make suitable charitable gifts today or after your lifetime. The financial benefits of the gift depend on whether we can use the property in a way that is related to our mission.

Related use property—e.g., a piece of artwork donated to an art museum—is deductible at the full fair market value. Any other property is deemed nonrelated use property and the deduction would be limited to the lesser of fair market value or your tax basis in the property.

If the federal income tax charitable deduction claimed for a gift of tangible personal property exceeds $5,000, you must obtain an appraisal from a qualified appraiser and submit a special IRS form with the tax return on which the deduction is claimed.

There are several ways to make a gift of personal property to us:

An outright gift. This allows you to benefit our work today and receive a federal income tax charitable deduction when you itemize.

A gift in your will or living trust. You can leave a legacy at Alexander Milne Developmental Services by donating your treasures to us through your will or living trust. A benefit of donating property through your will is that it gives you flexibility to change your mind at any time.

A bargain sale. You can sell us your property for less than the fair market value of the item. For example, if you sell us an antique for $25,000 that is worth $50,000, you will receive a federal income tax charitable deduction of $25,000 plus the payment from us of $25,000.

A memorial or tribute gift. If you have a friend or family member whose life has been touched by Milne, consider making a gift to us in his or her name.

An endowed gift. Create an endowment or contribute to one that is already established to ensure that your support of Milne will last forever.

A charitable gift annuity. You can sometimes use non-income producing property such as a valuable stamp and coin collections or works of art in exchange for life payments and a federal income tax charitable deduction. The amount of the charitable deduction depends, in part, on whether the donated items are retained by the charity and used for its tax-exempt purpose.

A charitable remainder trust. You may be able to contribute tangible personal property to a charitable remainder trust. If you or a family member is an income beneficiary, you will receive a federal income tax charitable deduction when the property is sold. An additional contribution of cash or appreciated securities is recommended to cover expenses until the tangible personal property is sold.

A donor advised fund. Gifts to donor advised funds are not limited to cash and securities. Tangible personal property such as valuable antiques, stamp and coin collections, works of art, cars and boats may be able to be gifted and sold to benefit your fund.

Closely Held Stock*

If you hold stock in a closely held business, you may be able to use that stock as a powerful way to support our future.

Closely held stock is most often used to support our work in the form of:

An outright gift. You can make a gift of closely held stock as long as the constituting documentation for the business permits additional owners and it is debt-free. The donation of closely held stock first requires you to value the interest in the business entity.

Review this checklist to see if you may benefit from donating closely held stock. Then, consult your professional legal and tax advisors to see how to maximize the benefits of this tax-efficient strategy for making a difference.

• You are a majority shareholder in a closely held corporation.
• You would like to remove retained earnings from the corporation, without having them taxed again.
• You would like to maintain a controlling position in the corporation’s outstanding stock.
• You would like to avoid capital gains taxes on the shares you donate to Alexander Milne Developmental Services.
• You would like to receive a federal income tax deduction for the full appraised value of the gift.
• You would like to support our mission.

A gift in your will or living trust. If you are not ready to make a gift of these assets during your lifetime, consider making a gift of all or a portion of your closely held stock through a gift in your will or living trust.

A charitable gift annuity. Funding a charitable gift annuity with closely held stock not only provides you with fixed payments for life and allows you to support our work, but it can offer numerous financial benefits. You may receive a federal income tax deduction and, if you use appreciated stock, you can eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy. It is possible to contribute stock in either a C or S corporation in exchange for a charitable gift annuity. The contributed shares must be valued by a qualified independent appraisal whenever the deduction exceeds $10,000. The appraisal is required in order to substantiate your federal income tax deduction.

 You may be able to use all or a portion of your closely held stock to fund a charitable remainder trust. If you do, you receive a federal income tax deduction on the appraised value of your gift, and you pay no capital gains taxes at the time of the gift. The trust pays you or other named individuals’ payments every year for life or a term of years. When the trust term ends, the remaining principal goes to Milne as a lump sum. Although a charitable remainder trust with a flip triggering event works well with most business interests, this type of trust cannot be the owner of S Corporation stock.

A charitable lead trust. In certain situations, you can create a charitable lead trust that allows you to pass your closely held stock to your heirs after supporting Milne. The trust makes regular payments to Milne for a period measured by a fixed term of years or the lives of one or more individuals. After the term ends, the remaining assets, including any appreciation, pass to your heirs. A properly designed lead trust will produce an estate or gift tax deduction for the value of that portion of the trust designated for Milne.

* A gift of closely held stock requires special handling, so you should always consult with your legal or tax advisor first.

Retirement Plan Assets

Do you have money saved in an employee retirement plan, IRA or tax-sheltered annuity? Each of these plans contains income that has yet to be taxed. When a distribution is made from your retirement plan account, your beneficiaries will owe federal income tax. Consider leaving your loved ones less heavily taxed assets and leaving your retirement plan assets to Alexander Milne Developmental Services to support our work.

As a nonprofit organization, we are tax-exempt and will receive the full amount of what you designate to us from your plan. You can take advantage of this gift opportunity in several ways:

Name us a beneficiary of your plan. All this requires is updating your beneficiary designation form through your plan administrator. You can designate us as the primary beneficiary for a percentage or specific amount. You can also make us the contingent beneficiary so that we will receive the balance of your plan only if your primary beneficiary doesn’t survive you.

With the IRA Charitable Rollover, if you are 70½ years old or older, you can take advantage of a simple way to help those we serve and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity such as Alexander Milne Developmental Services without having to pay income taxes on the money.

Fund a testamentary charitable remainder trust. When you fund a charitable remainder trust with your heavily taxed retirement plan assets, the trust will receive the proceeds of your plan upon your death. The trust typically pays income to one or more named beneficiaries for life or for a set term of up to 20 years, after which the remaining assets in the trust would go to support Milne. This gift provides excellent tax and income benefits for you while supporting your family and our work.

A donor advised fund. When retirement plan assets pass to your heirs, distributions are taxed as ordinary income. This income tax burden can be substantial, greatly reducing the value of the intended gift. Instead, you can designate your donor advised fund as the beneficiary of all or a portion of your retirement plan assets. Your fund receives the full amount of the gift and bypasses any federal taxes.

Life Insurance

When the original purpose for a life insurance policy no longer applies—such as educating children now grown or providing financial security for a spouse now deceased—your policy can become a powerful and simple way to support our work. There are three ways to give life insurance to Alexander Milne Developmental Services:

Name us a beneficiary of the policy. This gift is as simple as updating your beneficiary designation form with the policy holder. You can designate us as the primary beneficiary for a percentage or specific amount. You can also make us the contingent beneficiary so that we will receive the balance of your policy only if your primary beneficiary doesn’t survive you.

Make an outright gift of an existing policy. You can name us as owner and beneficiary of an existing policy. You qualify for a federal income tax charitable deduction when you itemize on your taxes. If you continue to pay premiums on the policy, each payment is tax deductible as a charitable gift when you itemize.

Make an outright gift of a new policy. You can take out a new policy and irrevocably name Milne as the owner and the beneficiary of the insurance contract. This method may be particularly attractive for the younger donor. Whether you make one single premium payment for the policy or pay annual premiums, each payment is tax deductible as a charitable gift when you itemize.

Commercial Annuities

Like retirement plan assets, commercial annuities provide for tax-deferred growth while the owner is living. Because distributions from commercial annuities are subject to income taxes, they are often considered among the best assets to leave to charity. Due to our tax-exempt status, Alexander Milne Developmental Services can receive your commercial annuity completely tax-free when you name us as beneficiary.

Making this gift is as simple as updating your beneficiary form with your bank or insurance company. You can designate us as the primary beneficiary for a percentage or specific amount. You can also make us the contingent beneficiary so that we will receive the balance of your policy only if your primary beneficiary doesn’t survive you.

Bank Accounts, Certificates of Deposit or Brokerage Accounts

Designating Alexander Milne Developmental Services as beneficiary of your bank accounts, certificates of deposit or brokerage accounts is a simple and straightforward way to support our work. There are two options you can use to make this gift to us:

Payable on death (POD). * By placing a POD designation on your bank account or certificate of deposit, you can name one or more persons or charities as the beneficiary of all funds once you, the account owner, pass away. The beneficiary you name has no rights to the funds until after your lifetime. Until that time, you remain in control and are free to use the money in the bank account, to change the beneficiary or to close the account.

By setting up your bank account or certificate of deposit in this way, the estate planning and administration process is simplified. The executor or administrator of your estate will not have to take any action to ensure that your account transfers to whomever you designated. Simply ask your bank representative about the one or two easy steps you need to take in order to place a POD designation on your bank account or certificate of deposit.

Transfer on death (TOD). * By placing a TOD designation on your brokerage or investment account, that account will be paid over to one or more persons or charities after your lifetime. It is not necessary for the TOD designation to transfer all of the account solely to charity—you can designate a certain percentage of the account. Like a POD account, with a TOD account the beneficiary you name has no rights to the funds until after your lifetime. Until that time, you are free to use the money in the brokerage account, to change the beneficiary or to close the account.

A TOD designation also simplifies the estate planning and administration process. The executor or administrator of your estate will not have to take any action to ensure that your securities transfer to whomever you designated. To set up the TOD endorsement, simply contact your investment advisor and provide instructions regarding the change.

*State laws govern payable on death accounts and transfer on death accounts. Please consult with your bank representative or investment advisor if you are considering this these gifts.