November 2013
International Medical Health Organization
Planned Giving Turn your charitable vision into a reality today through estate planning! Tax ID#59-3779465
Table of Contents Serving Others……………………..….1 Understanding Your Taxes…………..1 What is Estate Planning?...................2 Probate Court………………….……...2 Living Wills……..…………….……...2 Gift Tax Exclusions…………………..2 Estate Tax Exclusions…………….….3 Charitable Family Foundations……..3 Public Charities………………….……3 A Mission Fueled by Your Vision…..3
Serving Others The International Medical Health Organization (IMHO), a nonprofit charitable organization based in the USA, is committed to developing and improving healthcare services and infrastructure in underserved regions worldwide. With so many people in all corners of the globe lacking proper access to medical and health care, IMHO recognizes the immense need to spur positive change. We invite you to join us in our mission and make a tremendous impact on the lives of those in need. Service work is not only deeply rewarding, it can also enrich your life in ways you may never have imagined. As Gandhi once said, “The best way to find yourself is to lose yourself in the service of others.” One such way to get involved and support IMHO’s many efforts is through planned giving, which we will take you through in this appeal.
Understanding Your Taxes Throughout your lifetime you will pay many taxes, including income taxes, capital gains taxes, sales/use taxes, property taxes, and gift taxes on gifts above $2 million (per couple). In addition, upon the death of both spouses you will pay estate taxes.
Contact Us to Discuss Your Gift: International Medical Health Organization (IMHO) 955 Proprietors Road, Suite B, Worthington, OH, 43085 www.TheIMHO.org Tel: (614) 659-9922; Fax: (614) 659-9933
International Medical Health Organization
November 2013
What is Estate Planning?
Manage your wealth intelligently while leaving your legacy through charitable giving. What? An estate is the total net worth or Save Approximately 25% Now! sum of all assets (minus liabilities) of an individual or couple. Upon the death of both spouses, any and all assets constitute your estate.
Why? You may ask yourself, why should I be concerned with estate planning at this point in my life? The answer to this question is that you and your future beneficiaries will be better off now and in the future if you probably manage your wealth. Estate planning also ensures that your estate will never enter probate court.
When? Do your estate planning now.
Probate court is a specialized court that only considers cases that deal with the distribution of a deceased person’s estate. Any individual who has more than approximately $100K in asset value will end up in probate court unless they have created one of the following: 1. Family Living Trust 2. Charitable Private Family Foundation 3. Charitable Remainder Trust and/or other Trust By creating a Family Living Trust and/or Charitable Private Family Foundation you immediately save approx. 25% of your assets by avoiding probate court & legal fees.
Living Wills & Gift Tax Exclusions Living Wills ! A Living Will is not a substitute for a Family Living Trust. ! A Living Will is a complementary document to a Family Living Trust ! A Living Will does NOT avoid probate court
Gift Tax Exclusions A gift has to be given before death by an individual or from their trust. Current gift exclusion rules limit
giving to $1 million per spouse for 2009 through 2011, only if the gift is given while still living. A gift can be given to multiple people, but the total amount given is limited to $1 million for each spouse.
www.TheIMHO.org
November 2013
International Medical Health Organization
Support IMHO Through Planned Giving Receive tax write-offs for donations to Public Charities or Charitable Private Family Foundations Estate Tax Exclusions Upon the death of both spouses, the estate will be subject to estate taxes of up to 45-55% in 2011, of the total estate value after tax exclusions (up to $3.5 million). One of the many tools that is available to reduce estate taxes is through the establishment of a Charitable Private Family Foundation. After the death of the death of the first spouse, you must file the IRS Form 706 within 9 months. All assets will pass through to the surviving spouse without any estate taxes. However, after the death of the second spouse (or in the untimely event that both spouses pass away at the same time), all assets pass through to the beneficiaries of your Family Living Trust. At that point you must file Form 706 with the IRS and pay up to 45-55% (depending on the year) in estate taxes on the value of your estate after all exclusions.
Charitable Family Foundation A Charitable Family Foundation can become the beneficiary of anything in excess of the estate tax exclusion without paying any estate taxes. Your adult children or family members can act as Trustees of the Charitable Family Private Foundation and can distribute annually to the charity(-ies) of your choice. You can also save on tax money during your lifetime, if you transfer assets to your own Charitable Private Family Foundation while you are living. By doing this you will save on income
tax dollars (at their current value). Upon death, simply transfer your assets to your own Charitable Private Family Foundation and save on estate tax dollars. In this way, you can save both while you are living and after you have passed.
Public Charities For all donations to a Public Charity, you will receive a tax write-off on your adjusted gross income (AGI) on Line 37 of the IRS Form 1040. You will get a 50% write-off for all cash donations and a 30% write-off for all property donations. For all donations to a Charitable Private Family Foundation, you will also receive a tax write-off on your adjusted gross income (AGI) on Line 31 of the IRS Form 1040. You will get a 30% write-off for all cash donations and a 20% write-off for all appreciated property donations. Given all of this, it makes financial sense to give!
A Mission Fueled by Your Vision Put your charitable vision to work today with current earned income tax dollars. Then continue your charitable mission with estate tax dollars through a Charitable Private Family Foundation. You can make all the difference to those in need‌contact IMHO today to discuss your Planned Giving. Thank you for your support!