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Many AAP members and friends have demonstrated their special commitment to children by establishing life income arrangements or by including the AAP in their wills and estate plans.
Whether you wish to pass assets to your heirs, reduce income taxes, avoid capital gains, or simply turn a modest contribution into an extraordinary one, the Tomorrow's Children Endowment can provide an opportunity that is right for you.
Bequests || Trusts || Insurance || Property
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Bequest |
Charitable
Remainder
Trust |
Charitable
Lead
Trust |
Insurance
Donor-
Owned
Policy |
Insurance
AAP-Owned
Policy |
Donation
of
Property |
Life
Income |
|
X |
|
|
|
|
Income
Tax
Deduction |
|
X |
X |
|
X |
X |
Captial
Gains
Tax
Benefits |
|
X |
X |
|
|
X |
Estate Tax
Benefits |
X |
X |
X |
X |
X |
X |
Generation-
skipping
Transfer |
|
X |
X |
|
|
|
BEQUESTS
By contributing cash, property, or securities through a will, the
donor receives the following benefits:
- the avoidance of estate taxes and probate for the contribution; and
- the flexibility to alter the will according to changing needs and
circumstances.
TRUSTS
Charitable Remainder Trust
By irrevocably transferring assets to a trust and naming the
Academy as the trust's beneficiary, the donor receives the
following benefits:
- annual income payment for life, which can be either a
fixed amount (annuity trust) or a variable amount tied to
a percentage of the annual fair market value of the
trust's assets (unitrust);
- freedom to determine, at the time the trust is
established, the amount of income to be received
(although this amount may not be less than 5% of the
trust's fair market value);
- an immediate partial charitable tax deduction;
- the avoidance of estate taxes and probate; and
- minimization of taxes on assets transferred to heirs.
Charitable Lead Trust
The donor establishes a trust through which a fixed or
variable contribution is made to the Academy for either (1) a
predetermined number of years, (2) the life of the donor, or (3)
a combination of both. Upon completion of this term, the trust
reverts to the donor or to another designated party or heir. The
donor receives the following benefits:
- avoidance of taxes on trust income paid to the Academy;
- minimization of taxes on assets transferred to heirs; and
- partial gift and estate tax deductions.
INSURANCE
Donor-Owned Policy
By retaining ownership of a life insurance contract and naming the AAP
as the primary or contingent beneficiary, the donor receives the following
benefit:
- the avoidance of estate taxes and probate for the
contribution.
AAP-Owned Policy
By contributing a life insurance contract naming the AAP
as the owner and primary beneficiary, the donor receives the
following benefits:
- (1) a current income tax deduction on the current fair
value of an existing, paid up policy or (2) an annual
charitable income tax deduction for premium payments on a
new policy;
- the avoidance of estate taxes and probate for the
contribution; and
- the transformation of a generous contribution into a
major gift.
DONATIONS OF PROPERTY
By donating non-cash assets to the Academy, the donor
receives the following benefits:
- a charitable tax deduction equal to the fair market value
of the donation; and
- the avoidance of capital gains taxes on appreciated
assets.
This publication is prepared for our donors and friends for educational
purposes only. It presents general principles of tax planning which
can change without notice. Please consult your own qualified professional
advisor(s) regarding the applicability of any option to your personal
needs and financial and charitable goals.
The American Academy of Pediatrics is a 501(c)(3) not-for-profit organization.
Contributions are tax-deductible as allowed by law.
For more information, contact:
American Academy of Pediatrics
Development
141 Northwest Point Blvd
Elk Grove Village, Illinois 60007
Phone: 888/700-5378
Fax: 847-434-8000
E-mail: fcfindiv@aap.org
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