Robert purchased savings bonds many years ago as an investment for the future. He is now enjoying retirement and has ample income to maintain a comfortable lifestyle. He has never needed to cash in his savings bonds. He was surprised to learn that if he gifts his savings bonds during his lifetime, even as a donation to a charity, he would owe tax on all of the interest earned by the bonds since he purchased them. This would amount to a large sum of money. And if he leaves his savings bonds to an individual in his estate plan, then that beneficiary will still be required to pay the tax on the interest earned by the bonds. The ONLY way Robert can transfer his bonds without triggering the tax on the interest is to leave them to a charity, like Suncoast Hospice Foundation, in his estate plan. Because we are a charitable, tax-exempt organization, no tax on the interest needs to be paid, so the full value of the savings bonds can be used to support our mission of care.
- If you intend to include a charitable component in an estate plan, you will be leaving some assets to individuals and some assets to a charity. Your estate plan can direct that your savings bonds are among the assets you leave directly to charity. Your estate planning attorney can use language necessary to ensure that the savings bonds pass to the charity without triggering tax.
- If you already have an estate plan in place, you may want to address this issue with your estate planning attorney. If your current estate plan has the savings bonds passing to individual beneficiaries, the cost of amending your estate plan will probably be considerably less than the taxes that will have to be paid because the bequest of the savings bonds triggers a tax liability.
Please consider bequeathing your savings bonds to Suncoast Hospice Foundation. Your gift will help us provide more care, comfort and support for our community.
For more information, contact Karen Van De Putte, director of planned giving, at (727) 523-3422 or KarenVanDePutte@EmpathHealth.org.