Planned Giving at Hospice Hawaii

Many of our loyal supporters have been touched by hospice care through a loved one and want to continue their commitment to Hospice Hawaii beyond their lifetime. By including Hospice Hawaii in your estate plans, you will help to ensure that future patients and their families have access to quality end-of-life care and services for generations to come. A well-planned charitable gift can also provide direct donor benefits and enhance your ability to meet your financial and estate goals for your family. Another aspect to “planned giving” is to consider what type of asset would be best for you to use in supporting Hospice Hawaii. There are several options other than cash, such as appreciated stocks, bonds and mutual funds shares, real estate, personal property, and closely held business interests. It may be that using a different asset saves you taxes, enables a larger gift than otherwise possible or puts an idle asset to good use, in addition to preserving your cash for other needs. Gifts of property can be made as current gifts where Hospice Hawaii has immediate use of the gift, or they can be part of a deferred gift or a life-income gift.

For more information about planned giving please contact our Development Office at   808-924-9255 or email development@hospicehawaii.org.

GIFTS THROUGH YOUR WILL OR TRUST

Bequests are the most popular type of deferred gift. You can include a bequest in your original will or living trust or add one later by an amendment. The gift can be a specific amount of money, a specific piece of property, or a percentage of your estate. A bequest gift is very flexible and can be changed at any time. It also allows you to retain control over your assets should you need them during your lifetime. For sample bequest language you can share with your attorney, please click here.

Gifts through your Will or Trust Features:

  • Can be changed
  • Retain control over assets during lifetime
  • Estate tax deduction

Best for: Donor who would like to arrange for a substantial gift now but pay it when assets are no longer needed.

MAKE A GIFT AND RECEIVE PAYMENTS FOR LIFE (CHARITABLE GIFT ANNUITY)

You make a gift to Hospice Hawaii and in exchange receive payments for life for you and/or a loved one. Not only is a gift annuity easy to arrange, but your payments are fixed in amount, taxed favorably for many years, and backed by the assets of Hospice Hawaii. You also receive a deduction for part of the value of your contribution in the year of the gift. At the end of the gift annuity, Hospice Hawaii then uses the remaining gift amount to meet its most pressing needs. 

CGA Features:

  • Fixed payments for life at attractive rates
  • Immediate tax deduction
  • Partially tax-free income
  • Backed by assets of charity

Best for: Donor who is willing to give assets but would like to retain an income stream; perfect for modest gift sizes.

GIFT FROM YOUR RETIREMENT ASSETS 

You can designate Hospice Hawaii as the beneficiary of your IRA or other retirement assets such as 401(k) and 403(b) plans and Hospice Hawaii will receive the funds upon your passing. You can leave just a portion to Hospice Hawaii or the entire balance. Because these assets are among the most heavily taxed assets when passed to heirs, this is one of the most tax-wise ways you can make a gift. Like a bequest, this gift arrangement is flexible, revocable and the retirement funds remain available should you need them.

Retirement Plan Assets, IRA (Beneficiary Designation) Features:

  • Avoid double taxation at death
  • Flexible, revocable
  • Estate tax deduction

Best for: Donor who wants to arrange a substantial gift in a tax-wise manner and retain use of funds during lifetime.

GIFT WITH LIFE INSURANCE

You might have a paid-up life insurance policy that you no longer need. You can make a gift by transferring the policy outright to Hospice Hawaii or naming Hospice Hawaii as a beneficiary (similar to what you are able to do with retirement assets). Or you might think about taking out a new policy benefiting Hospice Hawaii and receive tax benefits with each premium paid.

Life Insurance (Beneficiary Designation) Features:

  • Flexible, revocable
  • Estate tax deduction

Best for: Donor who has a policy but wants to retain control in case family circumstances change.

Life Insurance (Policy) Features:

  • Income tax deduction (paid up policy)
  • Future tax deductions for any premium payments

Best for: Donor who has a policy that is no longer needed, or wants to make substantial gift at a modest cost.

CHARITABLE REMAINDER TRUST (LIFE INCOME)

A charitable trust is another way to make a gift and receive income for life. It is more flexible in nature than a gift annuity and can allow you to meet different personal goals. Your payments can be either fixed or variable in amount. Establishing a charitable remainder trust is a great way to create an income stream (or increase it) from real estate or appreciated securities while avoiding capital gains taxes. Another appealing feature is an immediate partial income tax deduction.

Charitable Remainder Trust Features:

  • Fixed or variable payments for life
  • Immediate tax deduction
  • Flexible as to beneficiaries and time period
  • Avoid capital gains tax

Best for: Donor who is willing to give assets but would like to retain an income stream from it. Ideal for those with highly appreciated property (held over one year).

RETAINED LIFE ESTATE

It is possible to give your residence, vacation home or farm to Hospice Hawaii but retain the right to continue living in or otherwise using the property for your lifetime. You make a generous gift but your lifestyle stays exactly the same. Unlike a bequest, this type of gift is irrevocable; because of this you would receive an immediate charitable deduction to use on your income tax return.

Retained Life Estate Features:

  • Continue using your property but make a generous gift
  • Receive an immediate tax deduction
  • Remove asset from taxable estate

Best for: Donor who is willing to give a home or vacation property, but wants to continue the enjoyment of that property.

CHARITABLE LEAD TRUST This trust arrangement allows you to make current gifts to Hospice Hawaii while passing your assets along to heirs at some time in the future, often with greatly reduced estate and gift taxes. It can also be arranged so that the remaining trust principal returns to you at the end of the trust term. Because everyone’s situation is different, Hospice Hawaii encourages you to seek professional legal, estate planning and financial advice before deciding on a course of action. This information does not constitute legal or financial advice and should not be relied upon as a substitute for professional advice.

GIFTS OF APPRECIATED PROPERTY (e.g. real estate and securities)

Consider a gift of appreciated property such as real estate and securities (stocks bonds, and mutual fund shares) where you receive a tax deduction for the asset’s full fair market value and avoid tax on the capital gain. (Assets must have been held over one year.) Most securities transfers can be done electronically and are easy to do. If you have investments you want to keep in your portfolio, gift your shares to Hospice Hawaii and use the cash you would otherwise have made your gift with to replace the shares. They’ll have a higher cost basis which will help to minimize future possible taxes.

Gifts of Appreciated Property Features:

  • Receive tax deduction for full fair market value
  • Capital gain is not taxed
  • Remove taxable assets from your estate

Best for: Donor with real estate or securities that have increased in value and which they have held for over one year, and who would like to make a gift with immediate impact at Hospice Hawaii.

GIFTS OF ARTWORK, COLLECTIBLES, AND OTHER PROPERTY

You can give ‘tangible personal property’ such as artwork, coin, stamp or book collections, equipment, and the like to Hospice Hawaii. If we can use the property in our work and you have owned the property for over one year, you will receive a tax deduction for its full market value. If it is unrelated to our mission, you will still receive a tax deduction, but one limited to your cost basis. Either way, you will be putting assets you no longer need or want to good use by Hospice Hawaii and removing assets from your taxable estate.

Tangible Personal Property Features:

  • Hospice Hawaii benefits immediately
  • Relieved from any burden of maintenance or insurance
  • Income tax charitable deduction
  • Removes assets from taxable estate

Best for: Donor who wants an impact with their gifts now and has valuable property that is no longer needed or where maintenance has become burdensome.

This information does not constitute legal, tax, or financial advice and should not be relied upon as a substitute for professional advice. Hospice Hawaii encourages you to seek independent legal, estate planning and financial advice before deciding on a course of action.