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For The Leinart's An IRA Is The Easy Way to Make a Charitable Gift


Grace Riley Leinart and Earl Leinart enjoy supporting a number of charitable organizations, and have been especially generous to Nebraska Methodist College—The Josie Harper Campus. When it came time to build a new college campus, Grace and Earl were there to lead the charge with the first pledge of the campaign.

Recently, the Leinarts learned about a new and simple way they could make a payment on their pledge to the College. The Pension Protection Act of 2006 allows individuals aged 70 1/2 or older to make gifts to qualified charitable organizations using funds transferred directly from their Individual Retirement Accounts (IRA) to a public charity. Furthermore, these individuals will not have to pay taxes on the amounts transferred, up to $100,000 per person, on or before Dec. 31, 2007.

Earl commented, "By gifting a portion of our IRAs to Methodist Hospital Foundation, our gifts were free of all income taxes and counted toward our required minimum distribution. We sure hope Congress will renew this legislation, because it's a great way for your dollars to go to what interests you, rather than for taxes."

For the Leinarts, education is a topic that has always interested them. Both were among the first in their families to obtain a college degree. And both have seen firsthand how scholarships can literally change a young life.

In fact, Grace chose nursing when it came time for her to attend college, because "it was the only free schooling I could find!" Grace planned a career as an Army nurse, but when the war ended her plans changed. She married Harry D. Riley and became an interior designer.

Many years later, Grace's beloved Harry passed and she later met and married Earl Leinart. They shared several interests, including a love for education. Grace had established some student scholarships as a memorial for her mother and enjoys keeping in touch with all the scholarship recipients. Earl shares her joy, and they host an open house at Christmas time, in addition to attending the numerous graduations, weddings, and other important events of "their" students.

So when the opportunity arrived for a new Nebraska Methodist College campus, the Leinarts did not hesitate to make their pledge.

"A gift of education is a gift that states, ‘someone believes in me' " says Grace. "Thanks to the Pension Protection Act, it was very easy to make an IRA charitable gift. The part we like best? We have to take the minimum distribution anyway, and this allows us to turn that distribution into a meaningful gift without having to pay more taxes."

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A charitable bequest is one or two sentences in your will or living trust that leave to Methodist Hospital Foundation a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to Methodist Hospital Foundation, a nonprofit corporation currently located at 8401 West Dodge Road, Suite 225, Omaha, NE 68114-3447 , or its successor thereto, ______________* [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to Methodist Hospital Foundation or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Methodist Hospital Foundation as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Methodist Hospital Foundation as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and Methodist Hospital Foundation where you agree to make a gift to Methodist Hospital Foundation and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

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