Deferred Gifts

Legacy Giving

Deferred Gifts

Gifts by Will or Bequest
Gifts by will allow donors to give in ways they were not able to during life and can take various forms:
A specific bequest directs that the David Lynch Foundation receive a specific piece of property such as real estate, artwork, or jewelry. A general bequest directs that the David Lynch Foundation receive a specified dollar amount.

A general bequest directs that the David Lynch Foundation receive a specific dollar amount.

A residual bequest is used to give all or a portion of whatever remains after all debts, taxes, expenses and all other bequests have been paid.

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The David Lynch Foundation suggests the following language for bequests:

Your attorney may wish to use the following language when making a bequest to the David Lynch Foundation:
“I give, devise, and bequeath David Lynch Foundation, a nonprofit organization with the federal tax id #83-0436453, located at 228 E 45th St #15, New York, NY 10017, the sum of $_______ (or describe the real or personal property or portion of the estate) to be used for general purposes.”

When filling out documents with your legal authority or attorney please provide the following information:

• David Lynch Foundation’s legal name is [The David Lynch Foundation for Consciousness-Based Education and World Peace].
• David Lynch Foundation’s mailing address is: [David Lynch Foundation], Development Office – Planned Gifts, 228 E 45th St #15, New York, NY 10017.
• David Lynch Foundation is a 501(c)(3) corporation. Our tax ID is #83-0436453. Please list “charity” as your relationship to the beneficiary.

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Irrevocable Life Insurance Trust (ILIT)
An irrevocable life insurance trust (ILIT) is an irrevocable trust created for the principal purpose of owning a life insurance policy. As with any other trust, the insurance trust is a contract between a grantor and a trustee to administer certain property, in this case an insurance contract, for the benefit of named beneficiaries. The insurance trust, like other irrevocable trusts, cannot be rescinded, amended or modified in any way after it is created. Once the grantor contributes property to the trust, he cannot later reclaim ownership of the property or change the terms of the trust. One of the primary reasons for executing a life insurance trust is estate tax considerations. If an ILIT is properly structured, the death benefits paid to the trust will be free from inclusion in the gross estate of the insured. In addition, the ILIT can be structured so that the trust will provide benefits to the insured's surviving spouse without inclusion in the surviving spouse's gross estate.

Many, if not most, people own some form of life insurance because of its unique ability to meet a variety of needs for financial protection. A donor can name the David Lynch Foundation the primary beneficiary or as a successor beneficiary of a life insurance policy. When the proceeds are paid to the David Lynch Foundation, the donor's estate will be allowed a state tax charitable deduction.

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Gifts of real estate with retained life interest
A gift of a remainder interest in a personal residence, vacation home or farm will provide you with a charitable deduction. What may be more important as a donor is that you can continue to occupy the residence or operate the farm without disruption.

Gifts of retirement benefits
Did you know that retirement plan benefits payable at your death may be subject to both income and estate taxes? If you name the David Lynch Foundation as the beneficiary, the full amount of the retirement benefit will pass free of estate and income taxes. This is a very effective way to leave a significant gift to the David Lynch Foundation.

Charitable lead trusts (CLT)
The charitable lead trust is the reverse of the chartable remainder trust in that it provides for a gift of payments from property to the David Lynch Foundation for a term of years - and then the property passes to whomever you designate.