PLANNED GIVING

A bequest is a gift you leave in your will. A charitable bequest is one of the easiest ways to make a lasting gift that will continue to give long after you are gone. A bequest is generally a revocable gift, which means you can change or modify it at any time. You can choose to designate that a bequest be used for a general or specific purpose so you have the peace of mind knowing that your gift will be used as intended. Bequests are exempt from federal estate taxes to the recipient resulting from the carefully planned use of tools like a testamentary charitable trust. If you have a taxable estate, the estate tax charitable deduction may offset or eliminate estate taxes. Types of Bequests There are a number of ways you can make a bequest for Service Dogs, Inc.:

A general bequest is probably the most popular type of charitable bequest. You simply leave a specific dollar amount to Service Dogs, Inc. For example, a bequest of $10,000 is a general bequest. The charity can use the bequest for any purpose they choose.

A specific bequest involves making a gift of a specific asset. For example, a bequest of a specified stock, real estate, or a vacation home is a specific request.

Leaving a percentage of your overall estate or a residuary estate to Service Dogs, Inc. means you leave a certain percentage, like 10%, 50%, etc. after the estate’s bills, bequests and taxes are paid. If fortune changes the size of the estate over the years, this bequest will change in the same proportion. Essentially, you are leaving a percentage of the leftovers or residual after estate obligations are paid.

A residuary bequest is used to give a charity all – or a portion of – one’s property after all debts, taxes, expenses and all other bequests have been paid. A common residuary bequest involves leaving “the rest of the property” to Service Dogs, Inc.

A contingent bequest is used to provide for the situation when a beneficiary dies before you or disclaims the property. To prepare for such an occurrence, consider naming Service Dogs, Inc. as the contingent beneficiary. This will ensure that the property will pass to Service Dogs, Inc. in one of these situations rather than to unintended beneficiaries. Example (simplified): You leave $100,000 to your son Wilbur. If Wilbur dies before you, then the $100,000 goes to Service Dogs, Inc. This is helpful in case you did not update your will after Wilbur died. It prevents the imaginary $100,000 from going to other people whom you did not intend to receive it or the state if there were no other beneficiaries named.

Always review language in financial documents you create with your own financial planner. The samples below are intended for suggestions only. Bequest Language In order to make a bequest, you should speak with your attorney. Your attorney can help you include a charitable bequest in your estate plan. We have provided some basic bequest language to assist you and your attorney. Sample Wording for Gifts to Service Dogs, Inc. By Will or Trust Agreement I give, devise and bequeath (description of assets or percent of residual estate) to Service Dogs, Inc. Service Dogs, Inc. is a qualified charitable organization located at 4925 Bell Springs Road, Dripping Springs, TX, 78620, Federal Tax ID #76-0260567. The above form is sufficient if the donor desires that his or her gift (bequest) be used at the discretion of Service Dogs, Inc. to support current charitable needs. Specific Bequest: If you are considering making an outright bequest to Service Dogs, Inc., we recommend the following language: Bequest of a Specific Dollar Amount I hereby give, devise and bequeath _________ and No/100 dollars ($DOLLARS) to Service Dogs, Inc. Service Dogs, Inc. is a qualified charitable organization located at 4925 Bell Springs Road, Dripping Springs, TX, 78620, Federal Tax ID #76-0260567. Bequest of Specific Personal Property I hereby give, devise and bequeath DESCRIPTION OF PROPERTY to Service Dogs, Inc., to be held by Service Dogs, Inc. in perpetuity, not in trust but in fee simple with the reasonable spending policy amount to be available in the sole discretion of Service Dogs, Inc. Service Dogs, Inc. is a qualified charitable organization located at 4925 Bell Springs Road, Dripping Springs, TX, 78620, Federal Tax ID #76-0260567. Bequest of Specific Real Estate I hereby give, devise and bequeath all of the right, title and interest in and to the real estate located at ADDRESS OR DESCRIPTION OF PROPERTY to Service Dogs, Inc., to be held by Service Dogs, Inc. in perpetuity, not in trust but in fee simple with the reasonable spending policy amount to be available in the sole discretion of Service Dogs, Inc. Service Dogs, Inc. is a qualified charitable organization located at 4925 Bell Springs Road, Dripping Springs, TX, 78620, Federal Tax ID #76-0260567. Percentage Bequest If you are considering making a bequest of a percentage of your estate to Service Dogs, Inc., we recommend the following language: I hereby give, devise and bequeath ____ percent (___%) of my total estate, determined as of the date of my death, to Service Dogs, Inc., to be held by Service Dogs, Inc. in perpetuity, not in trust but in fee simple with the reasonable spending policy amount to be available in the sole discretion of Service Dogs, Inc. Service Dogs, Inc. is a qualified charitable organization located at 4925 Bell Springs Road, Dripping Springs, TX, 78620, Federal Tax ID #76-0260567. Residual Bequest I hereby give, devise and bequeath to Service Dogs, Inc. the rest, residue and remainder of my estate, to be held by Service Dogs, Inc. in perpetuity, not in trust but in fee simple with the reasonable spending policy amount to be available in the sole discretion of Service Dogs, Inc. Service Dogs, Inc. is a qualified charitable organization located at 4925 Bell Springs Road, Dripping Springs, TX, 78620, Federal Tax ID #76-0260567. Contingent Bequest If (primary beneficiary) does not survive me, then I hereby give, devise and bequeath to Service Dogs, Inc. DESCRIPTION OF PROPERTY, to be held by Service Dogs, Inc. in perpetuity, not in trust but in fee simple with the reasonable spending policy amount to be available in the sole discretion of Service Dogs, Inc. Service Dogs, Inc. is a qualified charitable organization located at 4925 Bell Springs Road, Dripping Springs, TX, 78620, Federal Tax ID #76-0260567.

Should you be contemplating a charitable gift of $100,000 or more from your estate, you may find the charitable remainder trust a particularly flexible way to achieve your philanthropic goals, while achieving benefits in terms of income tax deductions, reduced estate taxes, decreased capital gains taxes, increased income from assets, and the ability to provide for your spouse and/or heirs. There are two principle kinds of charitable remainder trusts: The Charitable Remainder Annuity Trust which allows you to ensure an income for life at the same time it provides for the community to benefit in perpetuity. The donor who establishes an Annuity Trust at Service Dogs, Inc. creates a permanent charitable fund and receives a fixed annual income for life, as does a surviving spouse. The donor also benefits from a significant income tax deduction that can be taken immediately and carried forward up to five additional years, and from reduced estate taxes. The Charitable Remainder Unitrust similarly provides for a charitable fund, an income for life for the donor and his or her surviving spouse, and the relevant tax advantages. Instead of a fixed annual income, however, a specific percentage of the trust assets (the minimum is 5 percent) is returned to the donor each year. At the end of the trust, any assets remaining in the charitable remainder trust can be used to establish a named charitable fund.

This type of gift begins with a simple agreement between the donor and Service Dogs, Inc.: in exchange for a gift of assets, typically cash or stock, the Service Dogs, Inc. promises to pay the donor a guaranteed lifetime income. The donor can begin receiving the income immediately or defer payments until reaching a certain age. The donor realizes significant tax advantages — an immediate charitable tax deduction and consideration of a portion of the income payments as tax-free return of principal.

A life insurance policy can also be converted to a generous vehicle for philanthropy. The donor simply irrevocably assigns his or her insurance policy to Service Dogs, Inc. and names Service Dogs, Inc. as a beneficiary. Donors receive tax deductions equivalent to the policy’s cash surrender value or for the amount contributed (to Service Dogs, Inc.) to pay the premium, and can use the life insurance to establish a charitable fund of any kind.

Your primary residence or a second home is also, potentially, a charitable asset. A donor can gift a residence, realize a current income tax deduction, and continue to live in the home until his or her death. When Service Dogs, Inc. receives the home, it will sell the property and use the proceeds to support its charitable programs.

Please contact Sheri Soltes at (512) 858-1495 (tel:15128581495)or sheri@servicedogs.org.(mailto:sheri@servicedogs.org)