Leave a Legacy Gift: Ensure the Future of Wild Horses

Probably the most well-known estate-planning tool is the Last Will and Testament. Whether standing alone or as part of a multifaceted estate plan, a will is a convenient and often simple, and straightforward way to distribute assets to those you love. It is also a powerful way to help wild horses and burros.

• You can structure your will to make American Wild Horse Conservation the beneficiary of a specific dollar amount or property, a percentage of your estate, or your residuary estate, which is what remains after all specific bequests and expenses have been accounted for.
• Through a properly tailored will or another estate plan, you have the opportunity to ensure that your compassion continues to make a difference for our wild ones long after you have gone.

The following language can generally be used to make a bequest to American Wild Horse Conservation:  “I give, devise, and bequeath to American Wild Horse Conservation, federal tax identification number 47-4016989, with the permanent address of P.O. Box 1733, Davis, CA 95617, the sum of $_______ [or describe the real or personal property or percentage of your estate] to be used for its general purposes.”

A living trust is a legal arrangement where you transfer ownership of your assets into a trust during your lifetime. You can control and change the trust as you wish. This helps your assets pass directly to beneficiaries, such as American Wild Horse Conservation, after you die, avoiding a lengthy and expensive legal process called probate. It’s a way to plan for the future and ensure your loved ones—and wild horses and burros—are taken care of without the hassle of probate.

Charitable remainder trusts distribute annual payments to named income beneficiaries, determined by a selected payout percentage. Upon termination, any remaining assets are directed to American Wild Horse Conservation, your designated charity.

Charitable remainder trusts offer several advantages:

• You can ensure financial security for yourself and/or your loved ones
• It allows for diversification within a tax-free environment
• You may qualify for a charitable income tax deduction in the year you transfer assets to the trust, based on the present value of the eventual transfer to the charity. Any unused deduction can be carried over for an additional five years. This approach helps you avoid capital gains tax and maximize after-sale income
• The annual payouts may be partially tax-free
• By removing assets from your estate, you may benefit from reduced probate costs and increased estate tax savings.

Charitable lead trusts have been widely used as an effective method to transfer wealth to heirs. Essentially the mirror image of the charitable remainder trust, a charitable lead trust makes annual payments to American Wild Horse Conservation as your named charity. When the trust terminates, the assets are either returned to you, the donor, or distributed to your loved ones.

Charitable lead trusts can be a viable way to transfer assets to children or grandchildren at reduced gift and estate tax costs while supporting American Wild Horse Conservation’s work during your lifetime.

A charitable gift annuity is a simple agreement between you, the donor, and American Wild Horse Conservation. In exchange for your gift of $10,000.00 or more, American Wild Horse Conservation will pay you and/or another person or persons (no more than two for any one annuity) fixed payments each year for life. These fixed annual payments, known as annuity payments, are based on the age of the payment recipient, known as the annuitant, at the time of the gift.  The benefits of establishing a gift annuity are many:

• First and foremost, you are making a wonderful gift to wild horses and burros.  After the annuity has ended, we will put your gift to good use in strengthening our programs
• You and/or your designated annuitant(s) will receive a fixed income stream for life
• You may receive a charitable tax deduction in the year that you make the gift and can carry over any unused portion of the deduction for an additional five years. A portion of the annual annuity payments may be tax-free
• If your gift is of appreciated securities, you could  save on capital gains taxes.

Financial accounts such as checking accounts, savings accounts, and certificates of deposit can be designated as “payable on death” (POD) to American Wild Horse Conservation, meaning that you, as the account owner, name American Wild Horse Conservation to receive the funds upon your passing. This type of arrangement is also sometimes referred to as a “Totten Trust” or a “Savings Account Trust.” Additionally, most states allow stocks, bonds, mutual funds, and other securities to be designated as “transfer on death” (TOD).  Advantage of financial accounts:

• Funds from a POD/TOD account pass directly to American Wild Horse Conservation, avoiding the probate process
• You retain complete control over the funds during your lifetime. Also, as the account’s owner, you may cancel the account or modify your beneficiary designation(s) at any time
• To make American Wild Horse Conservation a “payable on death” or “transfer on death” beneficiary, simply contact your bank, credit union, or brokerage firm.

Life insurance can be an easy and flexible way to make an important gift to American Wild Horse Conservation. Whether it is an old policy that has outlived its original purpose (such as for a spouse who no longer needs it, a financially independent child, , or to protect a business that no longer exists) or a new policy purchased specifically to benefit American Wild Horse Conservation, a gift of life insurance can enable you to  leave a much larger gift to wild horses and burros than might have been possible during your lifetime.

The simplest way is to make American Wild Horse Conservation a beneficiary of an existing life insurance policy. Upon your passing, the full face value amount of the policy will go to American Wild Horse Conservation. While the proceeds from the policy will be included in your gross estate, the full amount received by American Wild Horse Conservation may be deductible as a charitable deduction.

To designate American Wild Horse Conservation a beneficiary of an already existing life insurance policy, you can simply request a beneficiary designation form from your employer or insurance company.

You can avoid this heavy taxation by making American Wild Horse Conservation a beneficiary of your retirement plan assets and using other less-taxed assets to provide for your loved ones. Naming American Wild Horse Conservation as the beneficiary of a retirement account means that American Wild Horse Conservation will receive 100 percent of your retirement plan proceeds free of all taxes. Although the proceeds will be included in your gross estate, they will be completely deductible as a charitable gift. Additionally, because American Wild Horse Conservation is exempt from income taxes, there will be no income-tax liability.

Naming American Wild Horse Conservation as a beneficiary of your retirement plan is quite simple. The administrator of your plan can provide you with a beneficiary change form.