HeadWise HeadWise: Volume 4, Issue 4 - Page 28

There are different ways that individuals can support the mission of the National Headache Foundation through donations. A present donation of money or other items of value is the most frequent manner of support. Provisions for specific bequests or residual bequests in one’s will or trust are often utilized. As part of one’s estate planning or planned giving, an individual can provide for charitable giving that may minimize gift and estate taxes while providing for (a) the smooth transfer of ownership, (b) the care and support of dependents, and (c) the avoidance of disputes among survivors. Three commonly used planned giving vehicles are: 1. Charitable remainder annuity trust. Assets (generally securities) are transferred to a trust. The trust makes fixed annual payments to the donor or other specified beneficiaries named by the donor. When the trust terminates upon the death of the donor or other specified beneficiaries, the remainder of the assets in the trust pass to the charity. A trust document is required. The donor retains the ability to change the designated charity. 2. Charitable remainder unitrust. Assets are transferred to a trust. The donor or other specified beneficiaries named by the donor receive fluctuating payouts from the trust (a percentage of the value of the principal) and, upon the death of the donor or other specified beneficiaries, the remainder of the assets passes to the desig