What Will Your Legacy Be?
A Gift in Your Will, Trust or Other Beneficiary Designation
Your attorney can help you design an estate plan that protects your family, preserves your property and benefits The Colonial Williamsburg Foundation. This information should be helpful whether it is your intention to include the Foundation as a beneficiary in your will or living trust or as a beneficiary of your life insurance policy, bank account, brokerage account or retirement account.
Useful Information for making an estate gift to The Colonial Williamsburg Foundation.
The Colonial Williamsburg Foundation
301 First Street, Williamsburg, Virginia 23185
FEDERAL TAX IDENTIFICATION NUMBER:
Sample Gift Language
(for review by your attorney)
You may wish to provide an unrestricted gift for The Colonial Williamsburg Foundation. Our general policy is to invest unrestricted bequests in the Foundation’s general endowment fund, where the annual earnings will perpetually support our mission – that the future may learn from the past.
Whether you intend to leave The Colonial Williamsburg Foundation a specific dollar amount, a specific property, or a percentage of your residuary estate, your attorney will draft language to accomplish your intended bequest under applicable state law. For unrestricted bequests, consider language such as the following:
Sample Bequest Language For Unrestricted General Purposes
“I give to The Colonial Williamsburg Foundation, Tax ID # 54-0505888, a not-for-profit, Virginia corporation located in Williamsburg, Virginia, the sum of $____________ [or property described herein] [or ____ percent (____%) of the rest and residue of my estate] to be used by the Foundation for its general purposes.”
You may wish to restrict your gift to The Colonial Williamsburg Foundation by designating your bequest to a permanent endowment fund(s) that has been established by the Foundation to support a specific core area(s) of Colonial Williamsburg. Contact the Planned Giving Office to confirm the correct name and designation for a Foundation permanent endowment fund(s) such as those mentioned above.
Alternatively, if you would like to restrict your bequest to a particular area or program, create a new restricted or named endowment fund, or restrict your bequest in any other way or for any other purpose, contact the Planned Giving Office to discuss or review your intentions to ensure that your wishes may be fulfilled as stated.
Sample Bequest Language for a Restricted Purpose(s)
“I give to The Colonial Williamsburg Foundation, Tax ID # 54-0505888, a not-for-profit, Virginia corporation located in Williamsburg, Virginia, the sum of $____________ [or property described herein] [or ____ percent (____%)] of the rest and residue of my estate] to be used for (see Restricted Gifts above).
For a copy of our Bequest Information paper contact the Planned Giving Office by email at email@example.com or call us at (888) 293-1776.
Life Income Gifts
If you would like to make a significant gift to support Colonial Williamsburg during your life time—but feel you need the income your investments provide--you may want to consider a life income gift to The Colonial Williamsburg Foundation.
Depending on the life income plan you choose, your contribution of as little as $5,000 may provide the following benefits:
- Income payments for your life or, if desired, for the life of one or two other beneficiaries.
- A current charitable income tax deduction.
- Avoidance of capital gains tax.
- An increased rate of return on highly appreciated, low yielding investments.
- Professional investment management and diversification.
- Exclusion of the gift amount from your estate.
- Make a significant gift to support the future of The Colonial Williamsburg Foundation.
What better way to provide for Colonial Williamsburg's future and your own?
- Charitable Gift Annuities
- The Pooled Income Fund
- Charitable Remainder Trusts
The IRA Charitable Rollover – Qualified Charitable Distribution
If you are 70½ or older and own a traditional IRA, you may roll over up to $100,000 from your IRA to charity every year as a qualified charitable distribution (QCD). A gift of up to $100,000 made from your IRA to the Colonial Williamsburg Foundation will:
- not be included in your taxable income.
- can satisfy all or part of your required minimum distribution (RMD) for the year (beginning at age 72).
- reduce your taxable income, even if you do not itemize deductions.
- not be subject to the charitable deduction limit on gifts of cash.
- support our mission – that the future may learn from the past.
To make an IRA rollover gift, simply contact your IRA custodian and request that an amount be transferred directly to the Colonial Williamsburg Foundation. IRA administrators frequently do not include the donor's name on IRA QCD checks so please contact Peggy McGraw at (757) 565-8605 or firstname.lastname@example.org to let her know that the Foundation should be expecting a QCD gift from your IRA.
For more information about the IRA QCD, see our paper, IRA Charitable Rollover – QCD Q&A, HERE
Information: Should you want to discuss an estate or planned gift for the Colonial Williamsburg Foundation or have any questions about an IRA Qualified Charitable Distribution, please contact:
Charitable Lead Trusts
In contrast to “life income” gifts that provide you with a current payment stream and The Colonial Williamsburg Foundation with a future remainder interest, a charitable lead trust (CLT) provides a current payment stream to the Foundation to meet current program or other needs. At the end of the trust term, the trust remainder will be returned to you or to other beneficiaries you designate.
You may significantly reduce gift or estate tax, be eligible for a current income tax deduction, and you will be able to witness, during your lifetime, the tangible impact your dollars are making on your designated area at Colonial Williamsburg.
Retained Life Estate
For many individuals, their personal residence represents one of their most substantial assets. A gift of the remainder interest in your personal residence that qualifies you for a charitable income tax deduction is an excellent method of making a gift benefiting both you and The Colonial Williamsburg Foundation without affecting your current lifestyle.
A retained life estate is a gift plan defined by federal tax law that allows you to donate your home or farm to The Colonial Williamsburg Foundation while retaining the right to use it for the rest of your life.
As the creator of a retained life estate, you irrevocably deed to The Colonial Williamsburg Foundation your home or farm, but retain the right to use it for the rest of your life, a term of years, or a combination of the two. You may also use a vacation home to create this kind of gift.
While you retain the right to use your property, you continue to be responsible for all routine expenses - maintenance fees, insurance, property taxes, repairs, etc. If you later decide to vacate your property, you may rent all or part of the property to someone else or sell the property in cooperation with The Colonial Williamsburg Foundation.
When your retained life estate ends, The Colonial Williamsburg Foundation can then use your property or the proceeds from the sale of your property for the purpose you designate.
The W.A.R Goodwin Society
The realization of the Reverend Doctor W.A.R. Goodwin’s vision of Colonial Williamsburg is shared today by hundreds of thousands of annual visitors, and supported by the generosity of tens of thousands of people who, as John D. Rockefeller, Jr., did, contribute to sustaining Doctor Goodwin’s dream.
Among them are members of The W.A.R. Goodwin Society, supporters and philanthropists large and small who include Colonial Williamsburg as beneficiary in their estate plans, wills and trusts.
Today, friends who make a life income gift, bequest or other non-contingent gift in their estate plan for The Colonial Williamsburg Foundation and document that gift with the Foundation are invited to become a member of The W.A.R. Goodwin Society.
Colonial Williamsburg presents those who have documented their gift with the Foundation a Certificate of Membership in The W.A.R. Goodwin Society and recognizes members in the Foundation’s Donor Registry.
For a Personal Representative, Executor or Trustee
Settling the estate of a family member, friend, colleague or client can be a challenging task. If you are responsible for administering a bequest or other estate gift to benefit The Colonial Williamsburg Foundation, please contact the Planned Giving Office for whatever information or assistance you may need to ensure that our donor’s intentions are honored.
2021 Year end Giving
The Tax Cuts and Jobs Act in 2017 increased the standard deduction so that now an estimated 90% of all income tax filers use the standard deduction and do not itemize. However, whether you are among those who itemize or among those who don’t, there are some tax strategies that you may want to consider.
There are many things to think about while tax planning and there are strategies that are only helpful under certain circumstances or are only applicable to some taxpayers. Consult with your tax and legal advisors to confirm the best strategies for you.
Charitable Deduction for Non-Itemizers. The Consolidated Appropriations Act of 2021 extended the 2020 CARES Act tax deduction for cash gifts to public charities like the Colonial Williamsburg Foundation for those who don’t itemize. The amount of the deduction is $300 for single filers and married filers who file separately and $600 for a married couple filing jointly. The deduction is against adjusted gross income.
The deduction is only for cash gifts and does not include any property including marketable securities and real estate.
Charitable Deduction Increase for cash gifts in 2021. There are limits on the amount of charitable contribution that may be deducted for taxpayers who itemize. The general rule is that the deduction for cash contributions is limited to 60% of adjusted gross income (AGI). For 2021 only, the Consolidated Appropriations Act increased the deduction amount for charitable gifts of cash to 100% of AGI.
The increase in deduction is limited to only cash gifts and does not include property gifts such as marketable securities and real estate. Gifts must be made to a public charity like the Colonial Williamsburg Foundation. Cash gifts to a donor advised fund do not qualify. This may not be a tax-wise strategy for all taxpayers, so we strongly recommend that you consult with your tax advisor. It is possible that larger tax savings would be generated across multiple tax years by claiming deductions at the normal AGI limits of 50% or 60% and carrying over the excess into future tax years.
Donation of Appreciated Securities. A gift of appreciated securities and certain other appreciated assets that have been held for more than 12 months can be very attractive for tax planning. Basically, the charitable contribution equals the fair market value of the stock or other asset at the time of the gift and tax deductible if you itemize. In addition, whether you itemize or not, the capital gain tax that you would normally pay if you sold a long-term appreciated asset is avoided when you use that asset to make an outright charitable gift.
The deduction for gifts of appreciated securities to a public charity like the Colonial Williamsburg Foundation is limited to 30% of adjusted gross income (AGI), while gifts of cash have higher AGI limits as discussed above. If a taxpayer’s donations exceed the AGI limits, then the excess charitable deduction can be carried forward for up to five years.
The IRA Charitable Rollover or Qualified Charitable Distribution. There are good benefits for taxpayers over age 70 ½ who make charitable distributions from an IRA (other than a SEP or Simple IRA), known as the IRA Charitable Rollover or a Qualified Charitable Distribution (QCD), to a public charity like the Colonial Williamsburg Foundation. First, whether the taxpayer itemizes or not, the distribution is not included in their taxable income like that of a regular IRA withdrawal. In effect, even a taxpayer who doesn’t itemize is getting a charitable income tax deduction. Additionally, not having to include the IRA QCD as income may result in lower Medicare premiums and may reduce exposure to net investment income tax. Secondly, for those who at age 72 begin taking required minimum distributions (RMD) the QCD counts toward and may satisfy the RMD for that year. QCDs are limited to $100,000 per year for each IRA owner.
To make a charitable contribution from an IRA, a taxpayer needs to contact the IRA administrator. Many IRA administrators have online forms that can be accessed for this purpose. Requesting the distribution does not meet the requirement to have made a gift, the gift is not deemed to be completed until the funds leave the IRA account. Administrators often require that year-end requests be made sufficiently prior to the end of the year (November 15 December 1 or earlier) so that the administrator has time to process the distribution. For a QCD gift to have been made in the current tax year or to be counted towards your current year’s RMD, the funds must come out of your IRA on or before December 31.
The QCD provides a very attractive tax benefit: generally, the money contributed to the IRA is untaxed, the gain accumulates tax-free, the distribution is made tax-free, and the distribution does not increase adjusted gross income with the resulting income tax, Social Security, and Medicare ramifications.
Information: Should you like to discuss an estate or planned gift for the Colonial Williamsburg Foundation or have any questions about these general strategies for making a year-end gift, please contact: