We've described some simple ideas for benefiting the American Red Cross through your estate plan, but it's important to know that the Red Cross can work with you on highly sophisticated arrangements, as well. Here are just a few possibilities:
Pay a lifetime income to your heirs. A charitable trust can be
established under your will to provide lifetime income for family
members, with the remainder passing to the Red Cross when the trust
ends. Your estate would be entitled to a charitable deduction for the
value of our right to receive the property in the future. You also can
leave funds or securities to the Red Cross and we will agree to provide
a charitable gift annuity to a relative or friend for life.
Reduce "death taxes" with a lead trust. You might consider a gift technique that allows you to give the American Red Cross merely the income from investment assets for a number of years, with all assets later returning to your family. This technique - the charitable lead trust - lets you control the eventual distribution of all your property and share a meaningful gift between your family and the American Red Cross. Lead trusts are generally used to reduce federal transfer taxes (gift or estate taxes), and deductions will be especially high if you fund such a trust now, during this time of low interest rates.
Consider beneficiary designations. Don't forget that life insurance policies, IRAs and most financial accounts and brokerage accounts can be made payable to the Red Cross at death without any need to change your will. Remember, too, that revocable living trusts can name the American Red Cross to receive benefits during life and at death.
We encourage you to contact our office at 1-800-797-8022, ext. 5, plndgiving@usa.redcross.org or log on to www.redcrosslegacy.org if any of these ideas are of interest to you, or if you have already made a gift through your estate plan. News of bequest intentions is extremely helpful in our future planning and gives us the opportunity to thank you.
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