Estate Giving

Bequeathing personal assets is an admirable way to leave a legacy for osteopathic family medicine. Bequests are most often satisfied with cash and/or marketable securities. A donor should consider designating a specific amount or a percentage of his or her estate. Note that the amount of the gift to the ACOFP Foundation will be deducted from a donor’s gross estate prior to computing federal estate tax.

Sample bequest language:

“I give, devise, and bequeath [X% of my estate or residue] OR [$____ specific dollar amount] to the ACOFP Foundation, a nonprofit corporation currently located at 8501 W. Higgins Rd, Suite 400, Chicago, IL 60631, Tax ID 36-3505805.”

Consider donating an existing life insurance policy to the ACOFP Foundation. Many people have paid-up life insurance policies that no longer require premium payments. A donor may find such a policy is an excellent way to satisfy their charitable desires. A gift of a paid-up policy entitles the donor to an income tax deduction equal to the lesser of either the cash value of the policy or the total premiums paid.

If there are still premiums payable on an existing unneeded life insurance policy, consider naming the ACOFP Foundation as the policy’s beneficiary. Kindly note that life insurance proceeds are generally subject to estate taxes, but life insurance proceeds payable to the ACOFP Foundation are not subject to estate tax.

Many potential donors have accumulated funds in a pension plan, individual retirement account, or other tax-deferred vehicle which are no longer needed for the donor’s or their family’s financial security. Naming the ACOFP Foundation as a beneficiary of retirement plans and IRAs is particularly tax efficient, because:

• Retirement assets passing to the ACOFP Foundation are not subject to income tax. Retirement assets payable to a donor’s children could be subject to income tax at a rate of 39.6%.
• Retirement assets passing to the ACOFP Foundation are also not subject to estate tax (at a maximum rate of 40%).
• It is possible that the income and estate taxes payable on retirement account assets payable to children may exceed 60% of the value of the retirement account.