When you include Hanaeleh in your estate planning, you will create a lasting and lifesaving legacy that will help expand our mission to save the lives of horses in Orange County and beyond.
Your gift will leave behind a heritage of altruism and hope, supporting horses we have already rescued, as well as those we will rescue in the future.
You have multiple options as to how to make a lasting contribution that will continue to support Hanaeleh and its horses. As Hanaeleh is a non-profit 501(c)(3) corporation (Tax ID: 20-3255341), your tax donation may be tax deductible as well. While the information on this page is for informational purposes, it should not be construed as legal advice, and you should always consult a financial advisor, lawyer, accountant or tax attorney when drawing up any legal documents.
You can recognize Hanaeleh by putting a bequest in your will or trust that does not cost you anything now, but will support us in the future. This bequest can also help your heirs as the tax donation may offset any additional estate taxes as well. There are a number of ways that you can recognize Hanaeleh in your will:
Specific/ General Will Gift
A specific will gift is often what people think of when they think of a will. When you designate a specific gift, you state specifically which individually owned property you wish to give to Hanaeleh. A general will gift is also very common. This designates a specific amount of money that is payable from general assets from the estate that you would like to leave Hanaeleh.
A residuary will gift is a gift of the money or property that is not identified in the will. This is the “left over” property that is only paid out after all other expenses and bequests have been paid.
Revocable Living Trust
Revocable living trusts give people much more control over the conditions of the trust, and therefore are one of the more popular trusts that are set up for charitable purposes. There are a number of benefits of a revocable living trust, including your ability to control the assets in the trust and changing the conditions of the trust. Income that is earned during the life of the trust can be designated to be paid to Hanaeleh and other benefactors. The property in the trust does not transfer to the beneficiaries until after death.
Charitable Remainder Trust
A charitable remainder trust is an irrevocable, tax-exempt trust. Assets placed in the trust can be designated to be paid to Hanaeleh for a set number of years during your life (not to exceed 20 years). At the end of the fixed term or upon death, a specific amount designated by you is distributed to Hanaeleh. The benefit of a charitable remainder trust is that there are no capital gains taxes on assets transferred to and sold through a charitable remainder trust.
Charitable Lead Trust
A charitable lead trust is similar to a charitable remainder trust in that a percentage of the assets in the trust are paid to Hanaeleh over a designated number of years. The remainder of the amount is paid to your heirs. One benefit of a charitable lead trust is that the trust beneficiaries do not have to pay estate taxes on the remaining assets, and you obtain a discounted gift tax when transferring assets to the trust.
Retirement plans such as Individual Retirement Accounts are often required to pay income and estate taxes. There is an exception, however; if you are 70 and a half or older, you can transfer up to $100,000 out of your IRA to Hanaeleh without paying income taxes or estate taxes on that amount. You can also use this donation as a charitable tax deduction. Another benefit of your gift means that these assets in your IRA will not be taxed upon your death.
Securities can be transferred through a broker directly to Hanaeleh, but assets that are held for at least 366 days are qualified as long-term capital. The benefit of transferring the securities to Hanaeleh is that the capital gains tax on appreciation is eliminated and the current market value of the securities can be deducted up to 30% of AGI (adjusted gross income) as a charitable contribution. Additionally, amounts exceeding the 30% can carry forward for up to five years.
Donating a gift of a home or land to Hanaeleh ensures that you make a substantial, life-changing gift to Hanaeleh while being able to keep the property during your lifetime and receiving a charitable tax deduction up front. The title does not transfer until either a specific date set by you or upon your death, so you are still responsible for the responsibilities (taxes, upkeep, etc.) of the house or land until that time.
Endowments are popular ways to donate to charitable organizations because the principal is not touched, meaning that the fund can last as long as the principal has worth. There is often a set amount of the income that comes in from the principal that is paid to Hanaeleh. When you put an endowment bequest in your will or living trust for Hanaeleh, you are creating a financial legacy that will be donated to Hanaeleh in perpetuity.
Note: While the information on this page is for informational purposes, it should not be construed as legal advice, and you should always consult a financial advisor, lawyer, accountant or tax attorney when drawing up any legal documents.