You can perpetuate your support of the Herreshoff Marine Museum & America’s Cup Hall of Fame with a gift that reflects your charitable, financial and tax goals.
After personal and family needs are met, donors can bequeath a specific amount or a percentage of their remaining estate to The Herreshoff Marine Museum. Contributions by bequest are deductible from the taxable estate as a charitable gift. Herreshoff Marine Museum can be named a beneficiary, or, if family obligations preclude doing this, the Museum can be named a contingent beneficiary in the event the first-named beneficiary(ies) should not live to receive the inheritance. If the donor’s will is already written, a simplified codicil ( a supplement or addition) can be added to the existing will.
Charitable Gift Annuity
In return for your gift, Herreshoff Marine Museum agrees to pay you guaranteer fixed payments at an attractive rate for as long as you live. The remainder then passes to Herreshoff Marine Museum. You receive a current income tax deduction and part of the payments you receive are tax-free. A gift annuity can also be established for the lives of two persons.
Charitable Remainder Trusts
This type of trust will provide you and/or your spouse or other selected beneficiaries with income for your lives or a stated number of years, after which the remaining trust assets pass to Herreshoff Marine Museum to become part of the Museum’s Endowment Fund. The donor or another income recipient can receive either a fixed percentage of the annual value of the trust principal or a fixed dollar amount. A charitable remainder trust can be created by lifetime gifts or under a will and offers income, gift, and estate tax advantages.
Charitable Lead Trust
These trusts allow you to transfer property to a trust for a stated number of years or for life with Herreshoff Marine Museum receiving income during this period. The trust property is distributed to you or your beneficiaries at the end of the term of the trust. Significant income, estate, or gift tax savings are possible, depending upon how the trust is structured.
A life insurance policy purchase a number of years ago (for children who are now economically self-sufficient) can be irrevocable assigned naming Herreshoff Marine Museum as the ultimate beneficiary and owner. The donor receives a tax deduction for the approximate cash value of the policy as well as a tax deduction for maintaining the annual premiums. The same benefits apply to the donation of a new policy. The donor also has the option of naming the Museum as a contingent beneficiary to whom proceeds can be paid if the primary beneficiary predeceases the insured.
IRA or Pension Plans
You can fund your legacy by naming Herreshoff Marine Museum as the beneficiary of your Individual Retirement Account (IRA) or pension plan. Because retirement assets are so heavily taxed, this alternative can have distinct tax advantages over funding your legacy with other assets.
Stocks and Bonds
By making a gift of appreciated securities (stocks or bonds) to Herreshoff Marine Museum you avoid capital gains tax and receive an income tax deduction equal to the value of the securities. If the deduction is larger than you can use in one year, you may deduct the surplus over the next five years until it is completely utilized.
Closely Held Stocks
Perhaps you own stock in your business and the stock has large built-in capital gains. You can obtain significant financial and tax advantages by gifting your stock to Herreshoff Marine Museum especially if you are considering selling your business.
Gift of Farm or Residence
Donors can contribute farm or residence by irrevocably signing the property to Herreshoff Marine Museum while retaining the right to live on it for the rest of their lives. By making this gift, the donor receives an immediate tax deduction as well as other tax advantages, and the Museum ultimately receives possession of the property for its use.
The unrestricted fund gives Herreshoff Marine Museum the most flexibility in meeting operating needs. It allows the administration to deliver programming in areas where funding is critical.
The following language will help your attorney in preparing your will or in adding a codicil to your existing will:
I give, bequeath and devise (percentage or dollar amount) to the Endowment Trust fund of the Herreshoff Marine Museum, of Bristol Rhode Island, the principal (gift) to remain in perpetuity and all the earnings generated by the principal can be spent at the discretion of the governing board.
A restricted fund is a fund you establish that benefits a specific type of program. For example, the Herreshoff Seamanship and Sailing Program for the purpose of helping to maintain the sailing program at the Museum.
To help your attorney, the following language is almost the same as with unrestricted funds with a slight change at the end. For example: “and all the earnings generated by the principal to be used for the purpose of the endowment of (write in the specific).”
As a donor, if you wish to create a lifetime legacy through a bequest, you need to have in writing the instructions to place the gift in the Museum’s endowment fund. However, if you do not leave any written instructions, the gift will immediately go into the current year’s operating fund.
For more information, please contact Elisabeth Swain at email@example.com or call the office at 401 253-5000 x222.