Giving from your IRA
If you have a traditional Individual Retirement Account (IRA) and are 70 ½ years old or older, the IRS requires you to withdrawal funds from your account called a Required Minimum Distribution (RMD). These funds can add to your total taxable income, sometimes even bumping you into a higher tax bracket. But, if you donate these funds to a charity through the Qualified Charitable Distribution (QCD) you can avoid paying any taxes on these funds.
By designating AOTF as the recipient of your QCD, you can help support our work and avoid any additional tax burden. You can also make AOTF the beneficiary of your entire IRA.
General Bequest
A general bequest instructs that a specific amount of money, a percentage of your estate or a certain piece of property, be given at the time of your death. For most people, a gift of a percentage of the remaining estate after taxes and debts have been satisfied is the most appropriate use of a general bequest.
The following sample language illustrates how a general bequest to AOTF might be phrased in your will or trust:
I give, devise, and bequeath __% of my Estate, after taxes and debts have been satisfied, to the American Occupational Therapy Foundation, Inc., a Delaware non-profit corporation, located in Rockville, Maryland.
I give, devise and bequeath that the amount $__ be given to the American Occupational Therapy Foundation, Inc., a nonprofit corporation, located in Rockville, Maryland.
Residual Bequest
A residual bequest designates that the remainder or balance of your estate goes to AOTF after your will or trust has made gifts of money or property to your loved ones. The following sample language illustrates how a residual bequest to AOTF might be phrased in your will or trust:
I give, devise, and bequeath all the rest, residue, and remainder of my property, real, personal, or mixed; after all personal bequests have been made, to AOTF, a Delaware nonprofit corporation located in Rockville, Maryland.
Contigent Bequest
A contingent bequest is useful when you want to make a gift to AOTF but you feel your heirs will need all the resources of your estate. A contingent bequest takes effect only in the event none of your heirs survive you. Though planning for this type of contingency may seem unnecessary, it is an important part of good stewardship. The following sample language illustrates how a contingent bequest to AOTF might be phrased in your will or trust:
In the event my wife (or husband) and all of my children should die prior to the distribution of my estate without leaving descendants surviving such event, then, and in that event, the undistributed corpus of my estate shall be distributed to the American Occupational Therapy Foundation, Inc., a nonprofit corporation registered in Delaware and located in Rockville, Maryland.
Bequest Following Income
A bequest following income provides a regular income stream from a trust to one or more loved ones for a specified term of years. After the term has been fulfilled, a percentage or the entire remaining amount can go to AOTF. This is often used in conjunction with a children's trust in a will. The trust can designate that the assets be held in trust until the youngest living child reaches a certain age and then be divided among the children and charity. The following sample language illustrates how a bequest following income to AOTF might be phrased in your will or trust:
The Trustee shall hold the corpus of my Trust until my youngest living child reaches the age of twenty-two (22), at which time my Trustee shall then distribute fifty percent (50%) of my estate to my children in equal shares and fifty percent (50%) to the American Occupational Therapy Foundation, Inc., a nonprofit corporation registered in Delaware and located in Rockville, Maryland.
Give it Twice Bequest
A "Give it Twice" bequest is another variation of the Bequest Following Income. With this arrangement, the assets are held in Trust for the children for a period of ten years after the death of the legal spouse or partner to the person preparing the will. During this time, the Trustee distributes 10% of the value of the trust each year to the children as beneficiaries or 100% of the initial value of the Trust over the term. If the Trust earns close to 10% each year the children will receive the full value of the estate spread out over a ten-year period and then AOTF will receive the remaining value after the ten-year period expires. AOTF could even serve as Trustee of the Trust if you prefer. This helps ensure that the children do not spend the inheritance too quickly and that AOTF receives a significant gift from the estate. The following sample language illustrates how a Give It Twice Bequest to AOTF might be phrased in your will or trust:
The Trustee shall hold the corpus of my estate in Trust for a period of ten years following my death. During that time the Trustee shall pay out 10% of the initial value of the Trust each year to my children in equal shares. At the end of the ten year term, the Trustee shall distribute the balance of the Trust estate to the American Occupational Therapy Foundation, Inc., a nonprofit corporation registered in Delaware and, located in Rockville, Maryland.
Individuals should always consult their personal attorney or qualified estate planning professional for guidance on how best to ensure occupational therapy flourishes in the future through an estate gift or bequest to the American Occupational Therapy Foundation.
Create a planned gift for the American Occupational Therapy Foundation in your estate plan, please contact the AOTF Development Office or call 240-292-1050.
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