Planned Giving

Bequests and other forms of planned or deferred gifts let you support Knox Community Hospital in a way that makes financial sense for you.  

What is Planned Giving?
Bequest
Gifts & Property
Life Insurance
Charitable Remainder Trust (CRT)
Charitable Lead Trust (CLT)
Endowment

 


 

What is Planned Giving?

A planned gift is a deferred donation (whether cash or assets) that usually involves preparation and counsel on the part of a financial advisor.  

A planned gift can generate income now, or it can provide charitable income over time.  Planned gifts can also be delayed to insure that the donor’s income remains untouched during his or her lifetime.  This type of giving has a number of charitable benefits.  Creating a planned gift has the potential to increase your income, reduce taxes, avoid capital gains tax, pass assets to family at a reduced tax cost—all while making a substantial donation to worthy charitable organizations like Knox Community Hospital.

Planned gifts include bequests, retirement assets, life insurance, charitable remainder trusts, charitable lead trusts and endowments. Learn more about planned giving and its benefits by contacting The Foundation Office at 740.393.9602.

Benefits of Planned Giving:

  • Maximizes your charitable contribution
  • Allows advantageous tax deductions under state and federal law
  • Turns appreciated assets into an income for yourself and/or others

 

Bequest

By including Knox Community Hospital in your will, you are providing excellent healthcare for future generations.  A bequest can be structured to suit your family needs, such as providing income for a loved one, before it is distributed to KCH.  Your charitable bequest is deductible for estate tax purposes and may offer significant tax savings, depending on the size of your estate.

Knox Community Hospital is happy to work with donors and their legal advisors on the phrasing of a specific bequest or on creating a named fund through a bequest.  If you would like additionally information regarding bequests, please contact The Foundation at 740.393.9602 or Lori.Wilkes@KCH.org

 

Gifts & Property

Gifts of tangible goods and property, including real estate, may be accepted depending on the nature and utility of the items.  Donors must provide fair market value based on IRS valuation rules and procedures.


Life Insurance

Many individuals have life insurance policies that can be used to benefit charities when the loved one dies or, in some cases, during the individual’s lifetime.  Life insurance can be used to benefit charities in two primary ways:

By naming Knox Community Hospital as a primary beneficiary or as a contingent beneficiary. Changing your beneficiaries is easy. Simply contact your insurance carrier and request a beneficiary form.

Benefits:

  • Easy to give – involves little effort or paperwork
  • Continued ownership
  • Revocable – may change beneficiaries during lifetime

Policy owners can also irrevocably assign the ownership and beneficiary designation to Knox Community Hospital, guaranteeing that the death benefit will pass to the charity. If the policy has cash value, the hospital would have the option of either holding until the maturity date or surrendering and receiving the policy’s present cash value.

Benefits:

  • Donor may be entitled to an immediate charitable income tax deduction equal to the fair market value or the adjusted cost basis the donor has in the policy
  • Proceeds will pass free of estate taxation to the Hospital when the insured passes

 

Charitable Remainder Trust (CRT)

Philanthropy is an important value shared by many families.

There are several mechanisms available to help you and your family give while realizing significant income and tax benefits. Charitable trusts are great tools designed for this purpose.

What is a Charitable Remainder Trust?
A CRT lets you turn an appreciated property (assets that have gone up significantly in value), like stocks or real estate, into lifetime income. These trusts can manage/minimize (pick one) your income taxes now and estate taxes later when you pass away. You pay no capital gains taxes when the asset is sold which helps you provide a giving legacy to worthy charitable organizations like Knox Community Hospital.

How does a Charitable Remainder Trust work?
When you decide to create a charitable trust, your appreciated property is transferred into an irrevocable trust. Your chosen trustee will invest and manage the property so that it earns income for you for a specified period or for your lifetime. You benefit immediately with a charitable deduction on your income taxes.  Since the asset is removed from your estate upon your death, there are no estate taxes assessed on the trust property and the remainder of the trust goes to the charitable organization.  Additionally, because the asset remains with the charity, capital gains taxes are minimized or possibly eliminated.

 

Charitable Lead Trust (CLT)

A CLT is often thought of as a charitable remainder trust in reverse. It has the same benefits as the CRT, but instead of the donor receiving income from the trust, the charitable organization receives the income for a specified period of time. Upon the grantor’s death, the beneficiaries receive the asset with significant tax advantages.

We recommend that you consult your financial advisor or attorney for the giving plan that best suits your needs.

 

Endowment

Endowed funds are essentially savings accounts from which only the earnings may be spent.  The principal is never touched.  A new endowment fund will be created with the donor’s name on it with a gift of $50,000 or more.

 

 

Jeffrey.Scott@KCH.org
Development/Marketing
740.393.9085
Lori.Wilkes@KCH.org
Development Coordinator
740.393.9602