Giving to Missouri 4-H
Planned giving opportunities
Supporting 4-H in your estate plan
A charitable bequest is your gift to the future. Please remember the Missouri 4-H Foundation in your estate plan. Cash, securities, real estate or personal property can be conveyed to the Missouri 4-H Foundation through a simple and inexpensive amendment to your will.
We would be delighted to discuss any of the planned giving choices shown below. Please contact us or call (toll free in Missouri) 800-642-8041.
Gifts by will
Naming the Missouri 4-H Foundation as a beneficiary under the terms of a will can be done in several ways. The simple and direct gift of money (or property) should state: "I give to the Missouri 4-H Foundation, Inc. the sum of (state dollar amount) dollars to be used for the general purposes of the Foundation."
For a residuary bequest, the will should state: "I give, devise, and bequeath to the Missouri 4-H Foundation, Inc. for its general purposes, all (or state fraction) of the rest residue, and remainder of my estate both real or personal."
A will need not be re-written in order to give a gift. Your attorney can add a codicil (amendment) to your will easily and without great cost.
Gifts by revocable living trust
A gift by revocable living trust is very similar to a gift by will. Your attorney will include language in the dispositive section of your living trust stating that you desire to give a gift to the Missouri 4-H Foundation, Inc. Your living trust need not be re-written to include the gift because an amendment can be easily prepared by your attorney with very little cost.
Nonprobate transfer enables you to name beneficiaries to receive assets at your death. Beneficiaries can be anyone: charities, children, or friends. The transfer is as the name implies, a nonprobate transfer, thus avoiding the expenses of the probate process. You maintain ownership and control of your assets while you live, and you can redeem, sell, or revoke at any time without permission of the beneficiary.
To use the provisions of the Nonprobate Transfers Law, you can place the designation “Transfer on Death” (TOD) on stocks, bonds, CDs, or mutual funds when you make the purchase, or you can return them to your transfer agent and add the beneficiary. If you want to transfer a farm, home, or other real estate, you can execute a beneficiary deed. You must record it at the county recorder’s office prior to your death.
Life insurance beneficiary designation
Many friends of the Missouri 4-H Foundation have found life insurance to be an ideal vehicle for making a substantial gift to the Foundation either during life or at the time of death. Some of the benefits of life insurance beneficiary designation include:
- Life insurance permits you to accomplish a substantial gift by making a series of modest payments during your lifetime.
- An existing life insurance policy may no longer be needed to protect your family and it is easy to name the Missouri 4-H Foundation as a beneficiary.
- A gift of life insurance is certain; the full proceeds are payable to the Missouri 4-H Foundation at the death of the insured.
Charitable gift annuity
A charitable gift annuity is a giving plan whereby you irrevocably transfer a principal sum of $20,000 or more, in exchange for which the Foundation agrees to pay you, or a designated person, a fixed annual sum for life. The payments are based upon the amount transferred and the age or ages of the persons involved. After the income payments cease, the remaining value of your gift is used by the Missouri 4-H Foundation for its general purposes.
Gift annuities can be especially attractive to you if you are 60 years of age, or above, because the rate of return that can be paid is very attractive. The rate paid increases as the age of the entry into a gift annuity increases. A maximum of 11.3 percent can be paid if entry age is 90, or above. Annuities can be paid to one annuitant or to two annuitants. Another attractive feature is that the annuity income can be partially tax-free. Illustrations are furnished to you that show how much income you will receive, the amount of charitable deduction, and the amount of tax-free income.
Charitable remainder annuity trust
This is a giving plan whereby you irrevocably create a trust and transfer it to a principal sum (normally $100,000 or more) which is invested by a trustee chosen by you. Your or other life income beneficiaries receive annual payments of a specific fixed dollar amount that must be at least 5 percent of the initial net market value of the contributed principal. The annual amount paid remains constant throughout the term of the trust. At termination, the remainder of the annuity trust is paid to the Missouri 4-H Foundation.
As in the case of other life income plans, you can claim a charitable income tax deduction in the year you transfer assets to the trust. You can use appreciated assets (stock, real estate, etc.) to fund the trust and avoid income tax on capital gains. Income from the annuity trust can be partially tax-free depending on how the trust is invested by your trustee.
Charitable remainder unitrust
This is a giving plan whereby you irrevocably create a trust and transfer it to a principal sum (normally $100,000 or more) which is invested by the trustee you choose. You or other life income beneficiaries receive annual payments based on a fixed percentage (not less than 5 percent) of the net fair market value of the trust assets, valued annually. You may ask for more than 5 percent. The larger percentage you ask for in a life income, the smaller the charitable deduction will be. You may elect to receive actual trust income only, if such income is less than the stated percentage. At termination, the remainder of the trust is paid to the Missouri 4-H Foundation.
You can claim a charitable income tax deduction in the year you transfer assets to the trust. Appreciated assets can be used to fund the trust, and you can request that your trustee invest in such a manner so part of the income will be tax-free.