Emerson Health continues to be shaped in significant ways by the legacies — large and small — delivered through a variety of flexible, tax-advantaged planned gifts. To appreciate the impact of these gifts, we have only to reflect on the legacy of Charles Emerson, whose planned gift led to the establishment of Emerson.
Since 1911, planned gifts have been instrumental in maintaining the health system's vitality and continued growth. Most important, these gifts have helped ensure that high-quality health care is available to our children and our children’s children.
In preparing your planned giving documents, please direct all gifts to: Emerson Health Foundation, 133 ORNAC, Concord, MA 01742. To learn more or to notify us that you have already included Emerson Health in your estate plans, please contact Amy Sagalyn, director of major gifts, at 978-287-3583 or firstname.lastname@example.org. The Emerson Health Foundation is a 501(c)(3) organization and our tax ID number is 04-2770980.
Your planned gift can take a variety of forms including:
- Fixed amount or percentage of estate or trust — With these gifts, Emerson Health receives a predetermined amount or percentage of your estate
- Residual bequest — With a residual bequest, Emerson Health receives a specific percentage share or the remainder of your estate after heirs are provided for and all expenses and debts are paid
Life income funds
The following gift vehicles are commonly described as life income funds. In each case, the donor makes a transfer of securities, cash or appreciated property to Emerson or a trust. In return, the donor — or their designated beneficiary(ies) — receives lifetime income and an income tax charitable deduction.
Types of life income funds include:
- Gift Annuities — Gift annuities are a simple contractual arrangement whereby a donor makes a minimum gift of $10,000 to Emerson Health Foundation and in return receives a lifetime, guaranteed income at a fixed amount. The annuity amount is set at the time the gift is made and is calculated based upon the age of the one or two income beneficiaries (minimum age of 60). Use our online gift calculator to explore gift annuity options.
- Charitable Remainder Trusts — Charitable Remainder Trusts (CRTs) are separately managed and invested trusts that provide lifetime income (fixed or variable) to the donor, with Emerson receiving the cash remainder of the gift at the death of the income beneficiary(ies). Banks and law firms commonly serve as trustees and managers of these trusts. CRTs offer the greatest flexibility to the life income fund donor, and frequently involve the largest gifts. One CRT of over $1 million (Goodwin Trust) was recently realized.
- Charitable Lead Trust — A charitable lead trust (CLT) combines a donor’s philanthropic values with his or her financial values. A CLT is an irrevocable agreement in which a donor transfers assets to a trust that creates a current income, or lead, interest payable to Emerson. The trust’s remainder interest either comes back to the donor or passes to some other non-charitable beneficiary — typically the donor’s heirs. The charitable interest can be designated for the benefit of one or more charitable beneficiaries for the life of the trust.
Other types of planned gifts
There is a range of other planned-giving options, including:
- IPOs, options and restricted stock — New giving opportunities may be created by the sale of a company, a merger or acquisition, an initial public offering or compensation benefits. Transferring these assets may allow you to achieve your financial goals while also supporting Emerson Health.
- Gifts of tangible personal property — Emerson Health accepts gifts such as art, jewelry or antiques that can be sold by the foundation. You may claim an income tax deduction for the fair market value of the gift if you owned it for more than 12 months; the IRS does require gifts valued at $5,000 or more to be professionally appraised.
- Gifts of real estate — Homes, undeveloped lots, commercial property or other real estate are ideal charitable gifts because they generally appreciate. They may be donated outright, converted to a new source of income through a deferred gift agreement, or transferred directly to Emerson Health with arrangements for life tenancy. Real estate gifts may allow you to benefit from income tax savings, capital gains tax savings, or estate and gift tax savings, while also possibly increasing your annual income.
- Gifts of a personal residence or farm with life tenancy — You can transfer the ownership of a residence or farm to Emerson Hospital while retaining use of the property throughout your lifetime. You remain responsible for all maintenance and upkeep costs, including insurance and taxes. Life tenancy gifts provide an income tax deduction that is less than the full-appraised value of the property, and are based on donors’ life expectancy, estimated useful life of the property, and separate values of the land and buildings.
- Gifts of life insurance — You can generate federal estate tax benefits and support Emerson Health by naming the hospital as the beneficiary (or co-beneficiary) on an existing life insurance policy. You can claim an income tax deduction for the cash surrender value if you make Emerson Health the sole owner of the policy. There are also significant benefits to purchasing a new policy through relatively modest annual gifts and naming Emerson Health the beneficiary and owner. This will allow you to turn a small annual gift into a large one as well as claim the annual premium amount as a charitable tax deduction.
Casper Jenney Planned Giving Society
The Casper Jenney Society honors benefactors who have included Emerson in their estate plans. The Society was named in honor of “Cap” Jenney, who owned and operated a Concord construction company. At the time of his death in 1989, Jenney left a surprise donation to Emerson Hospital; to this day, his gift remains one of the larger bequests the hospital has ever received.
Creating Legacies Newsletter