Gifts Through Your Estate

In some cases, a gift of stocks, bonds and/or mutual fund shares held long-term (more than one year) can be more beneficial to you than a gift of cash. It may provide you with a federal income tax charitable deduction for the full, appreciated value of the securities. In addition, you will pay no capital gains tax on the transaction.

If you are over age 70 ½, you may make a qualified charitable distribution (QCD) from your IRA as a tax-free distribution to a qualified charity. This gift will count towards your required minimum distribution (RMD), will not be counted as taxable income for you, and could potentially provide other benefits.

This distribution, also known as an IRA Charitable Rollover, is authorized by Section 408(d)(8) of the Internal Revenue Code. An amount up to $105,000 annually may be transferred directly from your IRA to the Corewell Health Foundation of your choice. The foundation must receive your gift by December 31 for your IRA charitable distribution to qualify for that tax year.

Please note that you may still be subject to state income tax, given your individual financial situation. You should consult a tax advisor or other professional for additional information regarding your specific situation.

If you have created and funded a donor advised fund at another charitable organization such as a community foundation, the National Philanthropic Trust, or the charitable arm of a brokerage firm such as Vanguard, Fidelity, Schwab, etc., you can make a gift in three ways:

• Recommend a grant from your DAF through your fund administrator.
• Se-up recurring grants from your DAF.
• Name Corewell Health Foundation of your choice as the beneficiary of your DAF.

Almost any type of real estate may be donated: undeveloped land, farms, commercial buildings, vacation homes, or your residence.

Ways to give gifts of real estate

An outright gift: When you make a gift of real estate you have owned longer than one year, you qualify for a federal income tax charitable deduction equal to the property's full fair market value. By donating the property to Corewell Health Foundation, you also eliminate capital gains tax on its appreciation.

A bargain sale: When you make a bargain sale, you sell your property to Corewell Health Foundation for less than what it is worth. The difference between the actual value and the sale price is considered a gift. A bargain sale can be an effective way to sell property that has increased in value, and it is the only gift that can give you a lump sum of cash and a charitable deduction (when you itemize) at the same time.

A retained life estate: Through a retained life estate, you can transfer your personal residence to Corewell Health Foundation but keep the right to occupy the home for the rest of your life. A retained life estate provides a federal income tax charitable deduction for a portion of your home's value. Note: Real estate taxes, maintenance fees and insurance on the property remain the responsibility of the donors during the course of their lifetimes.

Generous gifts and grants from family foundations, community foundations, and corporate foundations provide critical support for the lifesaving work at Corewell Health.

If you are interested in learning more about foundation giving and grants, or would like more information, we invite you to contact us to learn more.

A charitable remainder trust provides a way for you to irrevocably transfer assets into trust, and you (and someone else, if you choose) receive payments from the trust for life, or another time-period of your choice. The remainder of the trust is then used to support the hospital’s greatest needs, or a particular program or service.

Many different assets can be transferred to a charitable trust such as cash, stock, mutual fund shares, or property interests. A charitable trust may be managed by a bank, trust or investment company that is chosen by the donor.

These types of gifts may also offer you tax-related benefits, depending on your personal situation, in addition to the option for income. There are two ways to receive payments: A charitable remainder annuity trust (CRAT) is an individually managed trust that pays beneficiaries a predictable fixed dollar amount or fixed percentage of the initial value of the assets which funded the trust, regardless of market conditions. The CRAT cannot accept additional gifts after it has been established.

A charitable remainder unitrust (CRUT) is an individually managed trust that pays beneficiaries a fixed percentage of the current value of the trust, reassessed annually, for life or a term of years. The payout will increase, or decrease, based on changes in the trust’s value. Another variation is a FLIP-CRUT, which holds assets for a period of time and pays actual earnings, if any, to the beneficiaries. It then ‘flips’ to a standard payment unitrust when an anticipated event occurs, such as the sale of the property held by the trust.

We recommend that you seek the advice of your financial planner, attorney, and/or tax advisor to determine if a charitable remainder trust aligns with your overall circumstances and planning.

A charitable lead trust reverses the income payment pattern that is common to life-income gifts, such as a charitable gift annuity or charitable remainder trust. You, the donor, transfers property into trust and puts the charity in the ‘lead’ of receiving fixed annual payments either for a term of years or for your lifetime. The remaining assets are then returned to you, your family, or others that you designate as beneficiary.

Depending on your individual financial situation, you may greatly reduce or avoid possible gift and estate tax on trust assets passing to family, should some trust income go to charity for a term of years. We recommend that you seek the advice of your financial planner, attorney, and/or tax advisor to determine if a charitable lead trust aligns with your overall circumstances and planning.

A charitable gift annuity provides a way for you to make an irrevocable gift to support Corewell Health Foundation of your choice, while at the same time providing guaranteed fixed payments to you (and someone else, if you choose) for your lifetime. The remaining balance is then used to support the hospital’s greatest needs. You may also designate the corpus to a particular program or service at the time the CGA contract is set-up with the Foundation.

In addition, a CGA may be right for you if you have assets that would be beneficial to give away during your lifetime, such as cash, appreciated securities, or funds earning low interest rates. You may also qualify for a variety of tax-related benefits, depending on your personal situation.

Corewell Health Foundations have 501(c)(3) non-profit tax-exempt status.

Information contained herein was accurate the time of posting and is taken from sources believed to be reliable. The information on this website is not intended as legal or tax advice; for such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. You are encouraged to seek the advice of your financial planner, attorney, and/or tax advisor to make certain a contemplated gift aligns with your overall circumstances and planning. All conversations are confidential; no obligations are associated with these conversations.