There are many ways to help support the Redwood Library while planning for your future and that of your family.   By exploring different giving options with your financial advisor or lawyer, you may discover that you are able to accomplish more than you thought possible.

Since 1982, the amount of charitable giving through bequests has grown 6.2% per year in the United States.  More and more Americans are choosing to make bequests in their wills as a legacy of community support that will continue into future generations.  The giving of a bequest to Redwood Library may also provide the ability to diversify investment holdings, obtain an immediate income tax deduction (subject to certain limitations) and minimize or avoid adverse tax consequences.

Planned Gifts

Planned giving benefits range from a steady stream of lifetime income to a charitable income tax deduction and lower capital gains, estate, real estate, and other taxes. Together with bequests, planned gifts are Redwood's financial bedrock, the foundation that allows the Redwood Library and Athenaeum to preserve and enhance its collection, widely seen as a national treasure.
All planned gifts and estate plans should always be done in consultation with the donor's financial and legal advisors.

Bequests

A bequest is a gift made through a will or trust, to take effect upon a donor's death, and is a practical way to make a meaningful financial contribution to Redwood without affecting the donor's current financial position. A bequest may be for a specific amount, for a percentage of the donor's estate, or for part or all of what remains of the estate after other bequests are carried out.  Whether unrestricted or designated, bequests can help to reduce the donor's taxable estate.   Please remember to contact your legal advisor to prepare your will or trust.  But, the wording for a bequest can be as simple as:

"I hereby bequeath to the Redwood Library and Athenaeum, a non-profit organization, the sum of _______dollars ($), or ___ percent (%) of the rest, residue, and remainder of my estate, for the general purpose of the Redwood Library and Athenaeum."

Charitable Remainder Trusts

There are several types of charitable remainder trusts, but all share three features: each trust has its own separately invested portfolio tailored to specific investment and tax planning objectives. The donor specifies the payout rate, which is typically the amount of life income payments, which are currently 5% to 6% annually.  The income may be either for the life or lives of one or more income beneficiaries, or for a specified number of years (not to exceed 20) . Beneficiaries may be the donor or a spouse, relative, or friend. Depending upon the type of charitable remainder trust, the payout amount may be set at the onset (a charitable remainder annuity trust) or may vary with the annual payment (charitable remainder unitrust).  At the beneficiary's death or at the end of the trust term, the principal is distributed to Redwood Library.  All charitable remainder trusts should always be done in consultation with the donor's financial and legal advisors.

Charitable Lead Trusts

A charitable lead trust is the mirror image of a charitable remainder trust. To establish a lead trust, the donor places certain assets in an irrevocable trust for a set number of years, during which time the trust makes annual payments to Redwood. When the trust terminates, the assets go to beneficiaries named by the donor-typically children or grandchildren.  Since the trust is considered to be outside the donor's estate, any growth in the value of the assets during the trust's term may pass to the beneficiaries tax-free. The donor also receives a gift tax deduction the year the trust is established based on the present value of the totals received by Redwood Library during the term of the trust. All charitable lead trusts should always be done in consultation with the donor's financial and legal advisors.

Retirement Plans

A retirement plan such as a 401(k), 403 (b), IRA, Keough, or other type of retirement account may provide a donor with the ability to make a future gift to Redwood Library, while ensuring significant tax benefits for heirs.  Consult your financial and legal advisor about how this option might benefit both you and the Redwood.

 

Regardless of how you choose to structure your bequest, including the Redwood Library in your estate plans will allow you to become a member of the Charles Bird King Society as well as to play a vital and permanent role in the future of this historic institution.

For more information on becoming a member of the Charles Bird King Society, please contact the Redwood Development Office at 401 847-0295 x 115.