Thank you for considering Overlake Medical Center as you go about deciding the legacy you will leave for your community. Charitable giving can be an important part of your estate planning. A contribution to Overlake through your estate allows you to support exceptional medical care for your community—even beyond your lifetime.
Legacy gifts can be structured in many ways to ensure that your needs are met while simultaneously giving your community the gift of healthcare into the future. Explore the options below to learn which tool best fits you and your family.
Special Notice: The information on this website does not constitute legal, financial, tax, or estate planning advice and should not be relied upon as a substitute for such advice. Overlake encourages you to seek the counsel of your own professional advisors and values their involvement as you determine how you would like to proceed.
You can turn assets you hold into lifesaving gifts without impacting your cash flow.
If you give stock that you have held for at least one year and has grown in value, you can receive a charitable deduction for the value and avoid capital gains taxes. Giving appreciated stock may be more beneficial than giving cash due to the tax advantages. Click here to download asset delivery instructions.
If you are 70.5 or older, you are required to take a Required Minimum Distribution (RMD) from your IRA each year. If you roll all or part of that RMD, up to $100,000, directly to Overlake, you can make a difference for the health of your community and avoid the taxes.
A charitable bequest is simply a gift you make to a charity through a provision in your will or in a trust. Your bequest can take any of several forms:
- A fixed sum of money.
- One or more particular assets, such as shares of stock.
- Some or all of what remains of your estate after making other bequests and paying debts and expenses.
- A gift that is made only under certain circumstances (a “contingent” gift).
Download sample bequest language you can review and share with your lawyer.
Why make a bequest?
- Simplicity: A bequest is easy to arrange and often involves just a sentence or two in your will.
- Flexibility: As your financial picture changes, a bequest can be altered, so long as applicable legal requirements are met.
- Tax Savings: If your estate may be subject to federal or state estate taxes, you’ll be pleased to know a charitable bequest is completely deductible.
Example of a Charitable Bequest
When doing their estate planning recently, Mr. and Mrs. Carter determined they ultimately wanted to benefit not only their adult son and daughter, but also Overlake—where both children were born! Working with their attorney, the Carters sign wills ensuring that when one of them dies, the survivor will be the sole beneficiary of the estate. Later, however, upon the surviving spouse’s death, a bequest of $50,000 will be made to Overlake Medical Center Foundation, with the rest of his or her estate being split evenly between the two children.
The Carters are pleased with this arrangement because they know that if their circumstances change, they have the flexibility to revise their wills.
Charitable Gift Annuity
With a charitable gift annuity, you receive a stable, lifetime source of income.
- You transfer cash or securities to Overlake.
- Overlake provides you with fixed income for life, with the amount depending on the size of the gift and your current age.
- After your lifetime, the remainder goes to Overlake to continue caring for the community.
Benefits of a charitable gift annuity include:
- Stable income for life, beginning now or at a future date of your choosing.
- Immediate income-tax deduction for a portion of your gift.
- A portion of your payments will be tax-free.
- If you fund your annuity with appreciated assets, capital gains taxes will be reduced.
- Make a significant difference for your community.
Charitable Remainder Trust
A charitable remainder trust makes annual payments to one or more persons for a period of time before distributing its assets to one or more charitable organizations.
- You transfer cash or securities to an irrevocable trust.
- You avoid capital gains taxes when securities are sold.
- You receive a fixed annual amount for life or for a specific number of years.
- You receive an immediate tax deduction.
- After the term has ended, the remaining funds are distributed to the charitable organizations you chose.
Alternatively, you may choose a Charitable Remainder Unitrust, in which payments reflect a fixed percentage of the current value of the trust.
Charitable Lead Trust
A charitable lead trust features annual payments made first to Overlake for a number of years, after which the remainder goes back to you or passes to another person designated by you, such as a child or grandchild.
- You contribute cash or other property to fund a trust.
- The trust pays income to Overlake for a specified term.
- At the end of the term, the assets (and any accrued value) go back to you or your heirs.
- This strategy significantly reduces gift and estate taxes on assets you wish to leave to your heirs.
A retained life estate arrangement allows you to give your residence, vacation home, or farm to the Overlake but retain the right to use the property for the remainder of your life and the life of your spouse or other designated individual.
- Receive a charitable income tax deduction for the present value of the property.
- The amount of your tax deduction depends on the value of the property, whether you donate a full or partial interest, your age and/or the age of any other individual given use for life or some other time period, and other factors determined by the IRS.
- You may make a gift of your property even if there is a mortgage on it.
- You retain responsibility for the maintenance, insurance and taxes on the property while you retain the right to use it.
Charitable Bargain Sale
With a bargain sale you sell Overlake an asset, such as stock or real estate, for less than what it is worth.
- You receive cash from the sale plus a charitable deduction for the difference between the value of the asset and the selling price.
- You avoid capital gains tax on the charitable gift portion of the sale.
Why make a “dual purpose” charitable gift?
- Convenience: A single transaction accomplishes multiple objectives.
- Tax Deductibility: Typically you receive an income tax deduction for part of the value of the assets you use to make the gift, plus there can be estate tax and gift tax savings when compared with noncharitable alternatives.
- Increased Cash Flow: This often results from a charitable remainder trust or gift annuity.
- Capital Gains Tax Avoidance/Deferral: In most cases, using long-term appreciated assets to make a gift will produce less taxable capital gain than if the assets were sold.
Charitable Beneficiary Designation
You can designate Overlake Medical Center Foundation to receive some or all of the value remaining at the end of your life in connection with a financial account, investment, or similar arrangement. Possibilities include:
- A bank account or certificate of deposit.
- A brokerage account.
- An IRA or a qualified retirement plan, such as a 401(k) account.
- A life insurance policy.
- A commercial annuity contract.
Making this type of gift is quite simple. First, obtain a beneficiary designation form from the applicable financial institution. Often, you can do this on the Internet. Next, complete the form. Be sure to use the legal name “Overlake Medical Center Foundation” and, if requested, provide the Foundation’s Employer Identification Number, 91-1050325. Finally, simply return the form to the financial institution.
Why make a charitable beneficiary designation?
- Superior Simplicity and Flexibility: It’s even easier to set up—and revise, if necessary—than a charitable bequest.
- Probate Avoidance: A bequest made through your will must go through probate, a process that can be time-consuming and expensive. By contrast, with a beneficiary designation your assets can be transferred to your beneficiaries quickly and efficiently in the weeks after your passing.
- Tax Savings: A beneficiary designation features not only the same federal and state estate tax benefits as a bequest, but in some cases can produce income tax savings for your heirs if your estate plan provides both for loved ones and for a charitable organization.
Example of a Beneficiary Designation
Mr. Anderson has determined he probably won’t need all his 401(k) account for living expenses during his retirement years. He also feels that if in fact there ends up being some value left in the account once his life is over, he’d like Overlake to have a portion of what remains.
After speaking with his advisors, Mr. Anderson fills out a new beneficiary designation form naming Overlake Medical Center Foundation as the recipient of half the account upon his death, with various family members specified to receive the other half. As soon as the company that maintains his 401(k) receives the form, his gift arrangement is in place, although he can still revise things later depending on how his circumstances may change.
Whereas Mr. Anderson’s heirs will need to pay income tax on what they receive from the 401(k) account, the Foundation—as a tax-exempt entity—won’t pay any tax. Furthermore, his gift to the Foundation will produce additional tax savings if his level of wealth is large enough for estate taxes to apply.
The information on this website does not constitute legal, financial, tax, or estate planning advice and should not be relied upon as a substitute for such advice. Overlake encourages you to seek the counsel of your own professional advisors and values their involvement as you determine how you would like to proceed.
The Benefactor Society honors those who have made bequests or established other planned gifts and endowments with Overlake Medical Center Foundation. Their actions reflect a commitment to Overlake's future, leaving a lasting legacy for world class healthcare in our community.
Members are invited to occasional gatherings during the course of the year and are recognized in Overlake's annual report and on our donor recognition display (unless anonymity is requested).
If you have named Overlake in your will or set up some alternative planned giving arrangement, we hope you will complete and return our confidential form so we can recognize you as a Benefactor Society member. You may also contact us as noted below.
For Professional Advisors
Overlake Medical Center Foundation encourages donors to seek the counsel of their own legal, financial, tax, and estate planning advisors. If you are a professional advisor, we value your involvement as you help your clients determine how they would like to proceed with a planned gift.
We hope you will find the following information helpful:
- Our official name is “Overlake Medical Center Foundation” and our official address is 1035 116th Ave NE, Bellevue, WA 98004.
- The Foundation is a Washington nonprofit corporation, and under Section 501(c)(3) of the Internal Revenue Code, the organization is exempt from federal income taxation. Accordingly, donations to the Foundation qualify for income, gift, and estate tax charitable deductions under applicable portions of the Internal Revenue Code. Our Employer Identification Number is 91-1050325.
- Download asset delivery instructions
- Download sample bequest language
Planned Giving Advisory Council
Financial Advisor, CFP®, CRPC®, AAMS®
Douglas B. Custer
Financial Advisor and Shareholder, CFP®
Financial Advisor, CFP® CDFA®
Three60 Law Group, PLLC
King & Oliason, PLLC
Cornerstone Advisors, Inc.
Perkins Coie, LLP
Rachel L. Merrill
Hanson Baker Ludlow Drumheller, P.S.
John Sherwood, Jr.
Peterson Russell Kelly, PLLC
CTFA, CFP®, CDFA
Aletheian Wealth Advisors
Zeman Law Group, PLLC
Ida (Chun Mei) Zhu
LPL Financial Advisor, MBA, CRPC®, CFP®, MDRT
CMZ Wealth Strategies