Estate Planning

Bequests allow you to defer your gift until after your life-time.  Remembering LDF in your will or trust can be easily accomplished with the designation of a specific dollar amount or other property.  You may also designate LDF to receive a specified percentage or the residuary of your estate assets.

The following is sample language that you may use to remember LDF in your will or trust:

“I give and bequeath to the NAACP Legal Defense and Educational Fund, Inc., 40 Rector Street 5th floor, New York, NY  10006, the sum of $______ (or specific asset or _____ percent or the residuary of my estate) to be used for its general charitable purposes.”

A charitable gift annuity (CGA) provides you with lifetime, fixed income.  You make a donation of at least $10,000 in cash or appreciated securities to LDF in exchange for a charitable gift annuity.  In return for this donation, LDF pays one or two individuals of your choosing an annuity each year for life.  You can choose to take payments immediately or defer until a later age.

The potential benefits of a charitable gift annuity include:

• Lifetime income at attractive, fixed rates.
• Eligibility for a charitable income tax deduction for a portion of the gift.
• Reduction and deferral of capital gains taxes, if appreciated securities are used to fund the annuity.
• Portion of your annuity payments may be tax-free for a number of years.

Charitable remainder trusts (CRTs) provide a flexible way to provide lifetime income. Working with your attorney, you create a trust instrument designating one or more beneficiaries to receive annual income for life or for a term of years.  When the trust terminates, the remainder is given to the designated charities. 

There are two types of charitable remainder trusts:

• Charitable Remainder Annuity Trust – the income is a fixed dollar amount and the donor cannot make additional contributions to the trust
• Charitable Remainder Unitrust – the income is a fixed percentage of the value of the trust and the donor can make additional contributions to the trust.

The potential benefits:

• Income tax deduction for the present value of the remainder interest.
• Avoidance of capital gains.
• Flexibility as to the income recipients and type of income.
• A Charitable Remainder Trust can support one or more charities.

Did you know that you can support LDF’s important work by naming LDF as the partial or sole beneficiary of your IRA, 401(k), 403(b) or other retirement plans? Since retirement plan assets may be subject to both income and estate taxes if left to heirs, estate planners often recommend that you designate all or a portion of the assets to a charitable organization like LDF.  By leaving such assets to LDF, you can pass assets to your heirs which may generate a lower tax burden for your estate.

It is easy to make this kind of gift. Simply request a “change of beneficiary” form from your retirement plan administrator.  On this form you can name LDF as sole or partial beneficiary, or you can name us as a contingent beneficiary in the event you are predeceased by your immediate beneficiary.

On the beneficiary form list us as: 

NAACP Legal Defense and Educational Fund, Inc.

40 Rector Street 5th floor

New York, NY  10006

Tax ID # 13-1655-255

Life insurance for LDF lets you make a large gift at little cost. By leaving the proceeds of an insurance policy to LDF, the proceeds of the insurance policy will not be subject to estate taxes upon your death.  Also, if you transfer ownership of the policy to LDF during your lifetime, you may qualify for an income tax charitable deduction and also deduct the cost of future premium payments.

Here’s how easy it is… If the insurance policy already exists, you should request a “change of beneficiary” form from the insurance company.  You can name LDF as sole or partial beneficiary or you can name us as a contingent beneficiary in case you are predeceased by your primary beneficiary.

On the form list us as: 
NAACP Legal Defense and Educational Fund, Inc.
40 Rector Street 5th floor
New York, NY  10006