ESTATE AND F INANC IAL PLANNING IDEAS

NORTHWEST DIVISION | SUMMER 2012

®

Friends OF THE ARMYFriends OF THE ARMY

Gift Annuities Are a Family Affair

Florence Bognar enjoys life –helping her family and TheSalvation Army. Those twinobjectives led her to establishmultiple charitable gift annuitiesfor herself, her daughter Suzanneand two granddaughters, Lauraand Erin.

“I love The Salvation Army,and have always trusted them tobe there when people need help,”Mrs. Bognar explained, citing theArmy’s disaster relief efforts aftertornadoes struck many parts ofthe country earlier this year.

“I’m fortunate to be in a posi-tion to help The Salvation Armyfinancially, and have alwaystithed whenever money came myway,” she added. Mrs. Bognarmakes annual gifts to a numberof charities, including the Army,but charitable gift annuities havealways been close to her heart.

“In 2007, I set up a two-life giftannuity for my daughter Suzanneand myself, and will be leaving aP.O.D. (payable on death)account to The Salvation Armythat will provide another annuityfor Suzanne through my estateplan,” she noted. “I like the ideathat she will receive money on aregular basis for the rest of her life.”

Mrs. Bognar’s enthusiasm forgift annuities was such that sheeven persuaded two of her auntsto establish their own charitablegift annuities. The gift annuities

for her granddaughters aresomewhat unusual. Laura andErin are not yet old enough tohave immediate payment giftannuities, so Mrs. Bognar andThe Salvation Army gift plan-ning officer arranged “deferredpayment” gift annuities thatwill start paying “the girls” following their 55th birthdays.

Mrs. Bognar emphasizedhow satisfying it was to be ableto benefit both the work of theArmy and her granddaughters.The payments to Laura andErin will be a quarterlyreminder of their grandmotherand the love she had for themand The Salvation Army.

Our Office of Planned Givingwould be pleased to provide personalized illustrations ofhow charitable gift annuitiesand other arrangements can beof assistance to you, your familyand The Salvation Army.

Florence Bognar

Estate Planning: What Every Woman Should Know

Every woman needs an estateplan, whether she is single ormarried, owns large amounts ofproperty or little, is the head of a large household or has nodependents. Good estate plan-ning usually means:

■ making certain that yourproperty will be distributedaccording to your wishes: thecrystal to Sylvia…the grandfa-ther clock to Jeffery…

■ protecting against estate“shrinkage” brought on byincome taxes and estate taxes,the costs of estate administra-tion, the lack of estate liquidityand other expenses.

You also may need to takesteps to protect beneficiarieswith special needs, and makeyour wishes known on practicalmatters such as funeral and bur-ial preferences. Important plan-ning tools are available to you.

■ A well drafted will shouldbe the cornerstone of your totalestate plan. It gives form andsubstance to your thoughtfulconcern for the future of yourfamily and other beneficiaries,and ensures that your estatewill not be distributed understate laws for people who diewithout wills.

■ A trust, created during life orin your will, may figure promi-nently in your estate plan.

Through a trust you can provideincome for your family, transferinvestment worries to a trustee ofyour own choosing and perhapseven save on federal estate taxesand estate administration costs.

■ A living will or health carepower of attorney should bepart of your estate planning,providing doctors and familymembers with guidance inmaking health care decisions ifyou are incapacitated.

■ A personal affairs record thatprovides detailed informationabout your finances, location ofwills, insurance policies and trustdocuments, and explains yourfuneral and burial preferences willprevent confusion and savetime for family members.

The Salvation Army has anew booklet that addresses themany concerns women have asthey plan their estates. Justsend back the attached card foryour free copy of EstatePlanning for Women.

Some people’s legacies are engraved on monum

Why Are Gift Annuities So Popular Among Women?

Throughout the many yearsThe Salvation Army has beenoffering charitable gift annu-ities, we have recognized astriking phenomenon: The largenumber of women who aredonors and recipients.

Historically, one of the firstrecipients of a gift annuity wasa woman, and women continueto be in the forefront of donorswho use gift annuities to assistthe mission and ministries ofThe Salvation Army.

Why do gift annuities havesuch appeal to our female sup-porters? Many women like giftannuities because they providesecure, fixed payments for life, nomatter how long they may live.Actuarial statistics tell us thatwomen continue to live longer

than men by roughly five years,so it’s all the more important forwomen to have “an income thata person cannot outlive.”

Unlike commercial annuities,charitable gift annuities do notdiscriminate between men andwomen when it comes to pay-out rates: Women receive thesame payments as men of iden-tical ages from charitable giftannuities, and charitable deduc-tions are equal, as well, eventhough women stand to receivemore benefits over their longerlife expectancies.

We would be pleased to provide an illustration of all the benefits of a gift annuity for your unique circumstances.Just fill out and return theattached card.

ents, but yours can be written on lives.

A Caring and Sharing Estate Plan

Virginia sat in her attorney’soffice explaining her plans forthe distribution of her estate.

“I want to provide generous-ly for my son, Tim, and mydaughter, Julie,” she began,“but I’m not sure it’s necessary,or even a good idea, to leavethem 100% of my estate. Mylate husband and I taught themall about hard work and self-reliance, and nothing shouldchange that.”

Virginia continued, “Now,there are other beneficiaries Ineed to tell you about, andthey are a bit unusual. I neverhave to pay gift taxes or estatetaxes on anything I give tothem; in fact, whenever I makegifts to them I get to write itoff on my income taxes!”

Virginia smiled at her attor-ney’s puzzled expression andexplained that these “people”actually were important organ-izations she had supported allher life. Increasingly, womenlike Virginia are telling theiradvisers: “I’ve worked hard;I’ve been successful; life’s beengood to me. Now I want togive something back. I want todo something for humanity.”

For these women, their chari-table beneficiaries – such as

The Salvation Army – aredeserving of support not onlyduring life but through theirestate plans, as well. You canperpetuate your support ofSalvation Army programs by:

■ providing a legacy throughyour will or living trust;

■ making The SalvationArmy beneficiary of life insur-ance, a retirement plan, savingsor brokerage account;

■ establishing a gift todaythat provides you or familymembers with lifetime incomeand later benefit to the peopleserved by the Army.

FIRST NAME __________________________________________________

LAST NAME ___________________________________________________

ADDRESS ______________________________________________________

CITY __________________________________________________________

STATE________________________ ZIP ____________________________

PHONE (____________) __________________________________

DATE OF BIRTH (OPTIONAL)____________________________

E-MAIL ________________________________________________________

Thank You

(Detach, fold and tape before mailing.)

▲ Fold here

❑ Please send me your new booklet,

Estate Planning for Women.

❑ I am considering a provision in my will

or other plans for the future assistance

of The Salvation Army.

❑ I would like to discuss will planning

with a Salvation Army representative.

❑ I have already made a provision in my

estate plans for the Army, as follows:

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

For more information on any of the topics discussed in

the newsletter, simply fill out and mail this reply card.

▼Detach here

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The purpose of this brochure is to provide accurate information of a general character only. For

specific recommendations, each person should consult his or her own qualified professional adviser.

A Light in the DarknessSince its inception, The

Salvation Army has been abeacon of hope shining intothe darkest parts of our communities.

A gentleman we’ll call Lloydis a good example of how alife can go from hopeless tohope-filled when he comesunder the care of TheSalvation Army. One nightfollowing a prayer group at aSalvation Army facility, offi-cers locking up the buildingwere approached by a manwho was sobbing.

“He was homeless, just gotout of prison and was stayingin a bad situation – the onlything available,” the Captainrecalled. “He was being mis-treated there. He said hewanted to die.”

The Captain and otherprayer group members talkedto Lloyd about the hope thatis found in faith. And theypromised him they’d help him

get back on his feet. Lloydcommitted his life to Christright then and there. Sincethat night several months ago,he has been attending worshipat The Salvation Army everySunday and helping around the building. Everyone whoknows Lloyd believes that he ison his way to a new life. Mostof all, Lloyd’s positive attitudeshows that he believes that too.

The generosity of our faith-ful donors helps us offer arange of support and serviceswhenever someone like Lloyd,at the end of his rope, turns tous. Thanks to compassionategivers, we can keep the lightof hope burning brightly.

Please call our office forthe appropriate wordingwhenever you are preparinga gift through your will, liv-ing trust, IRA or other ben-eficiary designation.

James L. Grassley • Planned Giving Dept.Kim Sherwood • Planned Giving Dept.

111 Queen Anne Ave. North, Suite 300 • Seattle, WA 98109(800) 859-5066 • (206) 217-1271 • www.salegacygifts.org

Rich Silva • Planned Giving Dept.P.O. Box 10027 • Spokane, WA 99209 • (877) 595-0798

James L. GrassleyPlanned GivingDirector

Chris AndersonPlanned GivingDirector

Kurt BurgerPlanned GivingDirector

Rich SilvaPlanned GivingDirector

Kim SherwoodPlanned GivingDirector

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Estate Planning for Women

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