Supporting the hospital with a planned gift

The extraordinary legacy of Phelps Hospital is made possible by the generous support of our donors and partners. Many individuals have made a special commitment and chosen to support the hospital’s work both during their lifetime and through their estates by way of one or more planned gifts. Planned gifts are a great way to benefit the hospital while enabling you to enjoy benefits for yourself.

Unlike cash donations, planned gifts are typically made from existing assets or your estate rather than disposable income. A misconception is that gift planning is only for the “wealthy.” However, even people of modest means can make a difference through gift planning. See below to learn more.

Including Phelps in your estate plans is an extraordinary gift, one we would hope to recognize during your lifetime. Upon notifying us of the directive in your will or other gift, we would welcome the opportunity to include your name as part of the Anson Phelps Society, which recognizes the special commitment made by individuals who include the hospital in their estate plans.

For more information, please contact Lisa Koch, Director of Development at (914) 366-3108 or lkoch@northwell.edu. There is no obligation and all information will remain confidential. We recommend that you consult with your professional advisors for advice regarding your personal situation.

Bequest

One of the easiest and most effective ways to include Phelps in your estate plans is through a specific bequest. Adding Phelps as a beneficiary of your estate is easy to do and can be customized depending on your situation. This can be done when a will is drawn up or added as a codicil to an existing will. A suggested bequest could read as follows:

Please note that your will or codicil should refer to the legal name of our organization:

Phelps Memorial Hospital Association.

A general bequest
I, [name] of [city, state] give, devise and bequeath to Phelps Memorial Hospital Association, located at 701 North Broadway in Sleepy Hollow, NY, $XXX,XXX [% or description of asset] to be used to support its general purposes.

A bequest for a specific purpose
I, [name] of [city, state] give, devise and bequeath to Phelps Memorial Hospital Association, located at 701 North Broadway in Sleepy Hollow, NY, rest, residue, and remainder of my estate to be used for the activities of the hospice program.

Please note these are only two examples of the many ways one may customize his or her bequest.

Charitable trusts

A charitable remainder trust is an irrevocable trust that creates income based on the value of the property donated. A charitable remainder annuity trust pays a fixed income based on the value of the assets at the time the trust is created, while a charitable reminder unitrust provides a fluctuating income based on a fixed percentage of the trust’s annual value.

When a trust is created, capital gains tax can be avoided or postponed, and an income tax deduction is available for a portion of the value of the property. In addition, capital gain and/or dividend income from the charitable remainder trust may be taxed more favorably than other income.

Charitable gift annuities

A charitable gift annuity is a contract between a donor (called an “annuitant”) and a qualified charity. In exchange for a gift (at Phelps, the minimum gift is $10,000 in cash or appreciated stock), the charity pays a fixed income stream for life, usually in quarterly installments automatically deposited in a bank account. Part of the annual payments is tax-free. The charitable income tax deduction is based on age and is usually 30-50% of the gift amount.

Annuities are an excellent opportunity for individuals who want to support Phelps but also want to ensure they receive income on a regular basis.

Retirement assets

Whether it’s an employer-sponsored retirement plan, a private fund such as an Individual Retirement Account (IRA) or a combination of the two, you can designate a charity as the final beneficiary of any remaining funds which you or your loved ones do not use.

This gift can be designated when the fund is first established or it can be added later. The plan administrator will provide a change of beneficiary form upon request. You can then indicate the amount or percentage of assets you wish to allocate to charity. Giving this way can help maximize estate and tax savings for your heirs.

Life insurance

The need for life insurance can change as life progresses. Children become self-sufficient, and investments may provide unexpected income and security. As a result, not all life insurance coverage may still be needed for the reason for which it was originally purchased.

One way to make a significant gift is to name a charitable beneficiary to receive all or a portion of the proceeds of life insurance that is no longer needed for its original purpose. Or you may choose to make a gift of such a policy today and possible benefit from immediate tax savings.

Other options are to transfer ownership of an existing policy on which premiums are still being paid, or purchase a new policy naming a charitable beneficiary. In either case, future premiums can be tax-deductible.

Real estate

Real estate may be a valuable option depending on your situation. Gifts of residential, commercial, or undeveloped real estate may provide significant savings of income or estate taxes. Gifts of real estate have the potential to serve as a charitable income tax deduction for you, based on the fair market value of the property, with no capital gains liability for the transfer.