New Horizons Ministries

PO Box 2801, Seattle WA 98111

(206) 374-0866

info@nhmin.org

Estate and Planned Giving

Planned giving allows you to maximize your income tax deduction, reduce your estate tax burden, and provide income for those significant in your life. Planned gifts typically come from a donor's assets rather than income and can be either outright or deferred. Because each option offers specific tax advantages, we recommend you consult your personal financial and legal advisors.

	Wills and Charitable Bequests
	Beneficiary Designations
	Charitable Gift Annuity
	Charitable Remainder Trust
	Charitable Lead Trust

For more information about the options described below, please contact us at 1-866-NHM-KIDS, in the Seattle area at 206-374-0866, or by email at donations@nhmin.org

Wills and Charitable Bequests

A will is the easiest and most effective means to ensure that you fully provide for your family and that your assets are distributed as you wish. The most common planned gifts are bequests through wills. Giving through your will allows you to retain full control of your property during life, while still providing a special gift for continued support of New Horizons Ministries.

You can name New Horizons Ministries as a beneficiary in your will by making a specific dollar bequest or by giving a percentage of your estate. New Horizons Ministries can also be named as a contingent or secondary beneficiary.

The language in your will can be as simple as the following phrase:

"I hereby bequeath to New Horizons Ministries, 2709 3rd Ave., Seattle, WA, 98121..."
(State the dollar amount, the percentage of residual amount of estate, or fully describe the asset being given.)

A gift to New Horizons Ministries through your will provides several benefits:

	You retain full control of your property during your lifetime.
	Charitable gifts made through your will are tax deductible, resulting in significant estate tax savings.
	You may specify that your bequest be used for general purposes of New Horizons Ministries or you may designate the funds for a specific area of interest.
	Your gift supports the ongoing work of New Horizons Ministries.

This information does not constitute legal or financial advice and should not be relied upon as a substitute for professional advice. New Horizons Ministries encourages you to seek professional legal, estate planning, and financial advice before choosing your course of action.

Beneficiary Designations

You can name New Horizons Ministries as a beneficiary of a life insurance policy, individual retirement account, or qualified retirement plan such as a 401(k), 403(b), Keogh, or profit sharing plan. To do this, request a beneficiary designation form from the company issuing the policy or plan and fill it out according to your wishes.

A gift to New Horizons Ministries through beneficiary designations has several benefits:

	By donating a paid-up life insurance policy that you no longer need, you can make a significant gift at little cost to you.
	On a policy that is not yet paid up, in some cases you can deduct the premium payments that you are making on this policy and receive an income tax deduction for the value of the policy.
	Retirement plans are often the most heavily taxed assets in your estate. Most of the taxes can be avoided if the plan balance is given to a charity.
	If you intend to give some assets to your children or other individuals and some to a charity, consider making the charitable gift from the balance remaining in a qualified plan. The charity will not owe income tax upon receipt of the gift, whereas designated individuals will, and your estate will receive an estate tax deduction equal to the value of the plan balance given.
	Your gift supports the ongoing work of New Horizons Ministries.

Charitable Gift Annuity

The charitable gift annuity option is available through our partnership with the Seattle Foundation. With this planned giving option, you simultaneously make a charitable gift, receive immediate tax benefits, and receive guaranteed fixed quarterly payments for life to yourself and, if you are married, to your spouse. A charitable annuity is a simple contract between you and a trustee (New Horizons Ministries partners with the Seattle Foundation). This option allows you to give a specified amount of cash, securities, or other property to the Seattle Foundation and in return you receive a regular income.

A gift to New Horizons Ministries through a charitable gift annuity at the Seattle Foundation has several benefits:

	Regular and guaranteed income payments for life.
	Partially tax-free income.
	A current income tax deduction.
	Partial avoidance of capital gains tax, if the annuity is funded with appreciated assets.
	A potentially reduced estate tax burden.
	Your gift supports the ongoing work of New Horizons Ministries.

Charitable Remainder Trust

The charitable remainder trust option is available through our partnership with the Seattle Foundation. Currently $675,000 can pass through your estate without being taxed. Over that amount, an irrevocable trust such as a remainder trust can be established to reduce your estate tax liability and to benefit your chosen charity or charities. This is a gift arrangement under which assets (cash, securities, stocks, or real estate) are irrevocably transferred to a designated trustee (in this case, the Seattle Foundation) who manages the assets and pays income to the donor or beneficiary for life or a term of years. You receive an immediate income tax deduction, you select the method of income payments, and you determine who will receive the income and the period of years the trust will run. When the trust terminates, the remaining principle is used to benefit your designated charity.

A gift to New Horizons Ministries through a charitable remainder trust at the Seattle Foundation has several benefits:

	Regular and guaranteed income payments for life.
	Significant current income tax deduction.
	Increased income from gifted assets.
	Avoidance of capital gains tax if appreciated assets are used to fund the trust.
	Your gift supports the ongoing work of New Horizons Ministries.

Charitable Lead Trust

The charitable lead trust option is available through our partnership with the Seattle Foundation. Under this gift arrangement, your asset or assets (cash, securities, stock, or real estate) are transferred to a trustee (in this case, the Seattle Foundation), and the trust provides for the income from the assets to be paid to New Horizons Ministries. At the end of the trust's term, the principle is distributed to your designated beneficiaries at a greatly reduced gift tax and estate tax rate, because you permitted income from the property to go first to a charity for a period of years before transferring to your designated beneficiaries.

A gift to New Horizons Ministries through a charitable lead trust at the Seattle Foundation has several benefits:

	Benefits are maximized when the assets used to fund the trust have great appreciation potential.
	Any growth in the principal over the trust term passes to your heirs without being subject to gift or estate tax.
	New Horizons Ministries benefits by the annual income stream.