Gift Comparison Chart

Gift type

Benefits

Who it's for

Assets that can
fund gift

Bequest Costs nothing today; potential estate tax deduction People who are committed to Packard Children's Hospital and who wish to make a gift that doesn’t impact current cash flow. Cash, securities, other appreciated assets
Beneficiary Designation Avoid excessive taxes, pass more money to heirs, easy gift to make

People who want to pass assets to heirs but who want to potentially reduce future estate or gift taxes

IRA, 401k, retirement assets or life insurance
Charitable Gift Annuities Receive income for life; immediate tax deduction People who would like the financial benefit of a steady income for life.

Cash, securities

Deferred Charitable
Gift Annuities
Receive income for life; immediate tax deduction People who would like an immediate tax benefit and who are interested in future income Cash, securities
Charitable Remainder Trust Receive income for life; avoid capital gains; income tax deduction People who have appreciated assets and want to avoid capital gains while enjoying income. Cash, securities, real estate, other appreciated assets
Charitable Lead Trust Estate tax or gift tax benefits

People who want to pass assets to heirs but who want to potentially reduce future estate or gift taxes

Cash, securities, real estate, retirement assets or life insurance
Retained Life Estate Immediate tax deduction, plus possible estate tax savings People who want to be able to use their property for the rest of their lives, but who need current tax benefits Real estate (primary residence or vacation home)

Note: Currently federal estate taxes are repealed for any deaths that occur in the calendar year 2010. In 2011 estate taxes are reinstated for anyone whose estate is worth more than $1 million. Congress, however, has noted its intention to reinstate federal estate taxes much sooner than 2011. Congress could pass estate tax changes sometime during 2010 with an effective date retroactive to Jan. 1, 2010. What the final legislation will look like in terms of the tax rate, exemption levels and effective dates is unknown at this point. Check back later for future updates.

This is not professional tax or legal advice. Donors must consult their tax and legal advisors regarding their specific situation.

©2010 Lucile Packard Foundation for Children’s Health | 400 Hamilton Avenue, Suite 340 | Palo Alto, California 94301 | (650) 497-8365