Planned Giving

Beneficiary Designations

Not everyone wants to commit to making a gift in their wills or estates. Some prefer the increased flexibility that a beneficiary designation provides by using:

• Life insurance policies
• IRAs and retirement plans
• Commercial annuities
• Bank account

Benefits of Designating the Sisters as Beneficiary

• Supports the causes you care about.
• The account is yours for as long as you need it.
• Simplifies your planning by avoiding expensive legal fees
• Reduces the burden of taxes on your family.
• Receive a charitable deduction on taxes.
• Even after you complete the beneficiary designation form, you can take distributions or withdrawals from your retirement, investment, or bank account. You can also change your mind at any time in the future.

Three simple steps

It only takes three simple steps to make this type of gift. Here's how to name Dominican Sisters of Sparkill as a beneficiary:

1. Contact your retirement plan administrator, insurance company, bank or financial institution for a change-of beneficiary form.
2. Decide what percentage (1-100) you would like the Sisters to receive and name us, along with the percentage you chose, on the beneficiary form.
3. Return the completed form to your plan administrator, insurance company, bank or financial institution.

Charitable Trusts

Charitable trusts give you the flexibility and control over your charitable contribution, while saving you income tax (maybe even estate tax) dollars, and in some cases create an income stream.

Benefits of a Charitable Trust

If set up correctly, a Charitable Trust can provide substantial tax benefits:

1. Income Tax Deduction.
2. Estate Tax Reduction.
3. Preserves the value of highly appreciated assets while avoiding Capital Gains Tax.
4. Creates an income stream for the donor.

Types of Trusts

When choosing to set up a charitable trust, there are two types to consider. Both types split the assets in the trust between a charitable and a noncharitable beneficiary. The main difference lies in the timing of when the charity receives funds.

Charitable Remainder Trust (CRT)

• A gift of cash or other property to an irrevocable trust. The donor receives an income stream from the trust for a term of years or for life and the named charity receives the remaining trust assets at the end of the trust term. The donor receives an immediate income tax charitable deduction when the CRT is funded based on the present value of the assets that will eventually go to the named charity.

Charitable Lead Trust (CLT)

• A gift of cash or other property to an irrevocable trust. A named charity receives an income stream from the trust for a term of years. Depending on how the trust is structured, the donor enjoys a current income, gift, or estate tax deduction on the donated assets. After the income stream period ends, the remainder assets are distributed to the non-charitable beneficiaries.

How to include the Sisters in a Trust

1. Determine what assets you want to add to the irrevocable trust.
2. Decide on your beneficiaries and whether you want the trust income to pay them or the charity first.
3. Work with a legal professional to draw up a trust document that best suits your situation.