A bequest is made in your will or living trust. There is no limit on the amount you can donate through your estate. Bequests will reduce your taxable estate by the amount of the gift. They include:

+ A specific bequest, which names a specific asset or dollar amount. For example, you might bequeath a specific dollar amount; the sale proceeds from a specific asset, such as real property; or specific financial assets, such as stocks, bonds or mutual funds held in a brokerage account.

+ A percentage bequest names a percentage of the total value of your estate as a gift.

+ A residual (contingent) bequest is a gift you make after other bequests have been honored. You can donate all or a percentage of the residual assets.

You can designate HAPS as a direct beneficiary to a retirement account, such as and IRA, 401(k) or 403(b); or to a life insurance policy or annuity. It is one of the easiest ways to create a legacy at HAPS by simply updating your beneficiary designations on your retirement account or insurance policy. These gifts are also seamless as they are outside of your probate estate. However, retirement accounts are still included in your taxable estate. Therefore, like bequests, gifts made from retirement accounts will reduce your taxable estate by the amount of the gift.

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Outright gifts of real estate offer the opportunity to make a substantial gift during your lifetime. How?

+ You might donate real estate that may no longer be needed, for example, a family vacation property that is no longer being used, or a primary residence after you, or a loved one, have moved to an assisted living facility.

+ You can also continue to live in your home and receive an income tax deduction now for the gift of this property in the future by creating a life estate gift. Such an arrangement can allow you to continue your present lifestyle while taking part in HAPS’ future. You continue to live in and take care of the property, just as you always have, for as long as you choose to live there. The life estate gift can create a significant, immediate income tax deduction on the date the arrangement is made. Since the asset is no longer part of the estate, your family may avoid the estate tax on the home’s full value, as well as the difficulties of selling real estate.

By placing assets of your choosing, such as stocks, bonds or cash, in a CRT, you or someone you designate will receive income generated by the trust for a specified period of time and the remaining principal of the trust would then be donated to HAPS. CRTs are irrevocable.

When the trust sells any of the gifted assets, capital gains are not taxed, making CRTs an effective vehicle for liquidating highly appreciated securities without a tax liability. That means more assets are put to work providing annual income for you and your loved ones. In addition, you will receive an income tax deduction the year the trust is funded. For these reasons, CRTs can be a highly effective method of increasing your income and avoiding taxes while benefiting HAPS

By placing assets of your choosing, such as stocks, bonds or cash, in a CLT, you can designate periodic payments to HAPS for a specified period of time, which would provide HAPS current support, and then pass on the remaining assets in the trust to your loved ones with a dramatically reduced transfer tax (estate or gift tax). This gift vehicle is especially attractive when using assets that will appreciate significantly over time as these assets would be out of your taxable estate.

Unlike a charitable remainder trust, a charitable lead trust is not tax-exempt. Trust income is taxed like the income of any other complex or grantor trust.