A life-income gift is one of the best means of charitable giving ever created. Basically, donors transfer assets to a life-income device such as a charitable gift annuity or charitable remainder trust. In return, they receive income for life and provide a gift to further the mission of the Medical Center upon their death. The donor gets an income tax deduction for a portion of the life-income gift. If a life -income gift is made using highly appreciated assets, such as stocks, the donor also avoids paying capital gains taxes.

A charitable gift annuity is similar to an annuity purchased from an insurance company. The amount of income donors receive is based on their age and, if they choose, the age of any beneficiaries. The income is backed by the solid financial resources of East Alabama Medical Center. Recent AARP article click here.

A charitable remainder trust allows donors to place assets into a trust which pays them income, generally for life and then transfers the remaining assets to the Foundation. Donors may choose an annuity trust which pays a fixed amount of income per year, or a unitrust which pays income based on a percentage of the assets in the trust.

In addition to life-income gifts, there are other options for making a planned gift to the East Alabama Medical Center Foundation. Charitable bequests, gifts of life insurance and retained life estates offer donors the satisfaction of helping the Medical Center fulfill its mission while potentially lowering income and estate taxes.

A charitable bequest is a statement in a donor's will specifying what the Foundation will receive from the estate. The bequest may be for a particular asset, a fixed dollar amount or a percentage of the estate. A residual charitable bequest provides the Foundation with the remaining assets after providing for the donor's heirs. The entire charitable bequest is deductible on the donor's estate tax return.

Giving a life insurance policy is a means to make a substantial planned gift to the Foundation with a relatively modest current investment. The donor receives an income tax deduction based on the type of policy given - one that is paid-up, and existing policy on which premiums are owed, or a new policy. If the Foundation is named as the beneficiary to receive the death benefits, they are deductible on the donor's estate tax return.

A retained life estate allows donors to give their home to the Foundation but continue to occupy the residence for the rest of their life. The donor receives an income tax deduction for the present value of the home. Since the title to the home is transferred to the Foundation, there is no estate tax if the donor and his or her spouse are the only life tenants.

Planned gifts to the Foundation are tailored to the individual needs of donors as part of their overall estate plan. The Foundation staff works closely with donors and their advisors, such as trust officers, attorneys, accountants, and financial planners, to address the often complex tax and other financial considerations involved with a planned gift.

Thanks to the generosity of our community East Alabama Medical Center Foundation has helped the Medical Center offer sophisticated health care services not typically found in places like Lee County. If you believe having high quality health care close to home is important both today and in the future, please call the Foundation at (334) 705 - 1374 and learn more about a planned gift.