WILLS, GIFTS, AND BEQUESTS

You Can Help Build A Better Life for Westies
Today and Forever

West Highland Terriers enrich the lives of their human friends immeasurably, giving their owners love, devotion and companionship with no restrictions or qualifications. Now there is a way that all of us who love our Westies can help repay all that they mean to us not only now but as long as the breed exists.

The Westie Foundation of America, Inc., was formed in 1997 as a non-profit charitable corporation to provide financial and other support for individuals and organizations whose efforts focuses primarily on medical research to benefit Westies. Thanks to the wonderful generosity of many people, we have been privileged to begin providing significant financial support for research programs targeting diseases that afflict our dogs. We have every reason to think that the ultimate result of this funding will be a better life for Westies in need now and in the future.

Almost since the first day of the Foundation's existence, we have been asked if there are alternatives to a direct, immediate cash donation to support our work. We are gratified that there are so many people who want to help further research benefiting our breed even though they cannot now make a cash contribution, and indeed there are a number of ways through which individuals can have a very significant and lasting impact on the future well being of our breed and others.

THESE DEFERRED GIFT OPPORTUNITIES INCLUDE:

LIFE INSURANCE

Life insurance is one of the most flexible methods available for estate planning and estate preservation for those who wish to remember and care for their loved ones. It can be used to provide significant savings for you and your beneficiaries while allowing you to support the future of our breed, both immediately and/or far beyond our lifetimes. Among the options available are taking out a new insurance policy on your life, or assigning one already in force, naming the Foundation as the owner and beneficiary. By giving an insurance policy already in force, you may receive a charitable deduction for the cash value of the policy. The premiums on a new or existing policy may also be tax deductible.

A BEQUEST THROUGH YOUR WILL

Sometimes the words on bumper stickers are more than just witty -- they may also speak to a fundamental truth such as the one that reads "We Are All Taking Our Own Paths to the Same Destination." Another says "Don't Take Life So Seriously. After All, It Isn't Permanent." That simple fact is not something we choose to think about very often. However, at some point in our lives, the majority of us come to realize that providing for family and loved ones, even after we are gone, is among the most important things we can do; and for many of us, our Westies are certainly counted among our loved ones. We also come to realize that if we should pass away without a will, it will be our state and federal governments wishes, not ours, which determine how our estates will be dispersed. If you wish to provide continuing support for the Westie Foundation, you may name the Foundation in your will, or a codicil to your will, as the recipient of a specific dollar amount, a percentage of your estate, or as a final contingent beneficiary.

A LIVING TRUST

The Westie Foundation can be named as the co-owner with right of survivorship of any savings account. Upon your death, that account becomes the property of the Foundation automatically and without probate.

RETIREMENT PLAN

All or a portion of a retirement plan such as an IRA or Keogh plan can be used as a method for donation. In most cases, the trustee of the plan will help you make the designation of the Foundation as a beneficiary. As with a Living Trust, your gift will come to the Foundation without probate.

GIFT IN TRUST

You may give a gift of cash or appreciated securities in trust and receive the income from that gift until your death, the death of your spouse, or another specified time when the Foundation receives the assets. You may receive an immediate charitable deduction for the gift based on your age at the time the gift is put in trust. In addition, the asset may be removed from your estate and ownership may transfer, tax-free, to the Foundation.

RETENTION OF LIFE INTEREST GIFT

You may give a personal residence or farm to the Foundation and retain lifetime use of the property. You may receive an immediate charitable deduction for the gift based on your age. The property may be removed from your estate for tax purposes. The donor is responsible for taxes, insurance, and maintenance. At your death or that of the surviving spouse, the gift becomes the property of the Foundation.

ARTS, ANTIQUES, AND COLLECTIBLES

Works of art, antiques, and collectibles can be given to the Foundation and are tax deductible in the amount of the item's appraised value. Such items are often overlooked in the estate planning process, creating problems for heirs who must pay taxes on them. This may lead to estate liquidation problems or distress sales.

In addition to these deferred giving options, there are immediate ways in which appreciated securities or real estate can be used as donations. As in the case of the deferred options, there may be tax benefits for the donor, depending upon the laws in individual states and federal tax regulations. If you wish to consider any of these giving options, the Foundation strongly recommends that you consult a qualified estate planner, attorney, financial counselor, tax consultant or other qualified professional to determine how your individual gift can be structured and what tax benefits may or may not apply. The rules and benefits that apply to many of these forms of giving are constantly evolving and a highly qualified professional will be your best resource to insure that your gift has the intended results for you and for Westies.

Just as no two Westies are exactly alike, neither are any two of us who love the breed. But as the experience of the Foundation has shown in our relatively brief existence, the common denominator we all share, apart from our affection for our dogs, is our desire to give every Westie the best possible life. Having you as a Westie supporter means a great deal to our breed. If you choose to support the work of the Foundation by any of the methods outlined here, or through direct cash contributions, you have our pledge that we will continue to utilize your generosity to support medical research and other worthwhile programs that will help insure a healthy and happy future for every Westie.

For further information, contact the Westie Foundation of America.

The Foundation Board believes that, over the long haul, our largest financial support will come from those of you who remember the Foundation in your wills. Consequently, we offer the following information for your consideration.

What follows are some important thoughts and facts that are highly relevant to the need that EVERYONE has for their own will, as well as what it can do for you if you have a will and what can happen if you do not. Also included are some common misconceptions about who does not need a will.

YOUR WILL - A PRICELESS PRIVILEGE

One of life's privileges, and perhaps that which is most ignored, is the making of one's will. Every adult of sound mind may make a will and thus determine how his or her assets will be distributed after death. Nevertheless, some 70 % of those who die each year do so without a will. Probably no other document you will sign in your lifetime is as important as a will.

YOUR WILL - WHAT CAN IT DO?

A will gives you control as to how your assets will be distributed and who will oversee that distribution. Through a will, you are able to avoid unnecessary expenses in the administration of your estate, reduce your estate taxes, provide for the people who are close to you, and support charitable causes such as the Westie Foundation of America, Inc. A will allows you to shape the legacy you leave for the future.

YOUR WILL - OR THE STATE LEGISLATURE'S WILL

For whatever reason, those seven out of ten Americans are, through default, in effect permitting their state legislature to "write" a will for them.

The laws of individual states provide an inflexible method and procedure for the disposal of property of those who do not have wills. To put it another way, the state legislature has written a "will" for each person, although each person has the choice to make his or her own, personal will.

MISCONCEPTION: ONLY RICH PEOPLE NEED WILLS

Quite the contrary. In fact, those who are not rich are usually those whose families may be hurt most by the failure to have a will. As an example, the laws of most states provide, in the absence of a will, more adequately for children than for the surviving spouse. Not to be overlooked is the fact that many people are worth more than they realize - when they take into account their home, personal property, savings, life insurance, retirement benefits, and securities.

MISCONCEPTION: PEOPLE WITHOUT DEPENDENTS DO NOT NEED WILLS

Just the opposite. A person without dependents who does not have a will may find that under state law his or her property will go to his or her parents and perhaps brothers and sisters in specified, rigid shares. Friends, of course, will be left out, as will any worthwhile charity, such as the Westie Foundation of America's Endowment Fund, which that person may have wished to support.

MISCONCEPTION: YOUNGER PEOPLE DO NOT NEED WILLS

Wrong again. Every adult is likely to need a will, especially young married people with children. Accidents occur, and it is not uncommon for fatal accidents to involve both parents. These are exactly the situations in which an up-to-date will can prove invaluable for the survivors.

Please be aware that the laws pertaining to wills and estates differ from state to state. Before finalizing your gift, consult a licensed attorney experienced in the laws pertaining to estate planning.

The transfer of property is obviously one of the primary functions of a will. Traditionally, a transfer of personal property was called a bequest, a transfer of money was called a legacy, and a transfer of real property was called a devise. These terms are now used interchangeably and all are referred to as bequests. Various types of bequests may be used in wills, e.g.

SPECIFIC BEQUEST is a gift of a specific item to a specific beneficiary. For example: "I give my grand piano to my daughter Carol." If that specific property has been disposed of before death, the bequest fails.

GENERAL BEQUEST is a gift of a stated sum of money. It will not fail, even if there is not sufficient cash to meet the bequest. For example: "I give $25,000 to my son John." If there is only $2,500 cash in the estate, other assets must be sold to meet the bequest.

CONTINGENT BEQUEST is a bequest made on condition that a certain event must occur before distribution to the beneficiary. For example: "I give $50,000 to my son Patrick, provided he enrolls in college before age 21." A contingent bequest is specific in nature and fails if the condition is not met.

RESIDUARY BEQUEST is a gift of all the "rest, residue, and remainder" of the testator's estate after all other bequests, debts, and taxes have been paid. One who owns property worth $500,000 may intend to give a child $50,000 by specific bequest and leave $450,000 to a spouse through a residuary bequest. If the debts, taxes and expenses were $100,000 there would only be $350,000 left for the surviving spouse.

A will assures your desires will be carried out. Please consider being an important benefactor in the future good life for the West Highland White Terrier. The Westie Breed, like the human race, will live on after all of us. Include the Westie Foundation of America in your will.

Please be aware that the laws pertaining to wills and estates differ from state to state. Before finalizing your gift, consult a licensed attorney experienced in the laws pertaining to estate planning.

The practice of giving life insurance to charity is well established. Over the past decade, increasing numbers of individuals and businesses have recognized the value of life insurance in connection with philanthropic estate planning. There are two basic approaches which feature the use of life insurance in this regard: (1) outright gifts of life insurance to charities, and (2) the use of life insurance to replace the value of other assets which are gifted or bequeathed to charity.

OUTRIGHT GIFTS OF LIFE INSURANCE

While gifts of almost any type of property result in warm feelings and tax advantages for the donor, gifts of life insurance enjoy some particular advantages:

1. A much larger potential gift can be made with life insurance than through the gift of any other asset. A charitable pledge equal to the face amount of a life insurance policy can be fulfilled either through a single gift which represents a fraction of the total pledge or on the "installment plan" through annual premium payments. Depending upon the age and health status of the donor and the timing of the donor's demise, the benefits received by the charity may be many times the amount of the contributions made into the policy.



2. If the donor makes a gift of appreciated real or personal property or stock, the charity can sell the property or stock and use the proceeds to pay life insurance premiums. The donor avoids capital gains tax on the appreciation and receives an income tax deduction based on the full fair market value of the property while the heirs receive the proceeds of the insurance upon the death of the insured. The donor wins, the heirs win, our Westies win. Only the government loses.



3. If the charity is made the owner of the policy, the charity has the use of the policy's cash value during the donor's lifetime. Dividends may be used and policy loans taken to meet current cash needs.



4. Life insurance is not subject to the delays and expenses of the probate process. The charity, or the heirs, may expect to receive the proceeds within thirty days of the insured's death under normal circumstances.



5. The program is self-completing, in the sense that the charitable pledge can be fulfilled whether the donor lives for many years or dies in the early stages of the program. No other asset can guarantee the same result without a contribution of the full amount of the pledge at the outset.



6. The program is simple to implement. No legal agreements are required and there are no extra administrative costs associated with the arrangement.

METHODS OF GIFTING

A donor can choose among a variety of strategies for making a charitable gift of life insurance. The most common approaches are the following:

• The donor can retain ownership of the policy and simply name the charity as revocable beneficiary of the policy. Although this approach creates no income tax advantage for the donor, it does permit the donor to invade the policy values in an emergency or change the beneficiary until the moment of death. Although the policy proceeds are includible in the donor's estate using this approach, the estate receives an offsetting charitable estate tax deduction that eliminates any tax on the proceeds.



• The more common approach is to name the charity as owner of the policy. This is true whether the policy is newly issued or is an existing policy that the donor has determined is no longer needed for family purposes. If an existing policy is gifted to the charity, the donor will be entitled to a current income tax deduction equal to the lesser of (a) the fair market value of the policy or (b) the donor's cost basis in the policy. With this approach, the proceeds are not included in the donor's estate, or are offset by the estate tax charitable deduction.

ASSET REPLACEMENT

Because of the heavy taxes imposed on QUALIFIED RETIREMENT PLAN BENEFITS and IRAs -- wherein a $1 million accumulation left to someone other than a spouse or a charity could shrink to about $270,000 in the hands of the ultimate beneficiary -- these are ideal vehicles for charitable gifts. When such assets are left to a CHARITABLE REMAINDER TRUST (CRT), a portion of the estate tax that would otherwise be due is saved and the income taxes are deferred.

Assume that the donor in such a case had wanted his beneficiaries to enjoy a lump sum inheritance at the time of his death closer to the real value of $1 million. The donor could have used lifetime distributions from the IRA or qualified plan, or other assets, to purchase life insurance outside of his estate. At his death, his heirs would receive the life insurance proceeds free of income and estate tax while the balance of the retirement accumulation passes to the CRT. (The amount of life insurance depends upon the age and health status of the insured, as well as the policy design.) The donor's heirs enjoy income from the CRT with the principal ultimately passing to the charity.

Alternatively, the donor might have decided that it was important for the charity to receive its gift at the time of his death. In that case, he could plan to leave the retirement accumulation outright to the charity at his death with an appropriate amount of life insurance proceeds passing to his heirs to replace the value of the charitable gift. Life insurance is commonly used as well to replace the value of assets gifted to charitable trusts during the lifetime of the donor.

SUMMARY

Any person of philanthropic bent who wishes to multiply the positive results that flow from giving should consider a gift of life insurance to charity. Life insurance can also be an extremely valuable tool for those who want to be certain that their charitable gifts will not be made at the expense of their families.

Please be aware that the laws pertaining to wills and estates differ from State to State. Before finalizing your gift, consult a licensed attorney experienced in the laws pertaining to estate planning.

Follow this link for EXAMPLES

Enrollment Form

Knowing that you intend to help the Westie Foundation work toward improving our Westies' lives through medical research and education helps us plan for the future. Please take a moment to fill out this form:

Intent Form

In order to view the above forms, you will need Adobe® Reader® — free software for viewing and printing Adobe Portable Document Format (PDF) files.