Gifts of Retirement Assets, Life Insurance or Real Estate

Other Planning Giving options to consider are naming Fletcher Allen in your retirement plan, retirement account or life insurance policy; or consider the option of gifting real estate property.

Retirement Plan/Account Beneficiary

Supporters of Fletcher Allen are encouraged to name Fletcher Allen as the primary or contingent beneficiary of their retirement plans and retirement accounts. Such designations will not be considered by Fletcher Allen as a donation until such time as the beneficiary designation is irrevocable. The designation becomes irrevocable by your either indicating so on your beneficiary designation form and the account’s/plan’s custodian or administrator accepting its irrevocable status, or upon your death. If you name Fletcher Allen as your primary beneficiary, you guarantee that Fletcher Allen will receive whatever remains in your plan/account at your death. If you name Fletcher Allen as your contingent beneficiary, Fletcher Allen would receive any remaining balance in your plan/account following both your death and the death of the named primary beneficiary (e.g., your spouse). You do not receive any income tax charitable deduction during your lifetime. Upon your death, however, your taxable estate would be entitled to a charitable deduction based upon the amount actually passing to Fletcher Allen. Individual beneficiaries of your tax-deferred retirement account/plan would be required to pay income tax on the accrued interest following your death, effectively reducing the benefit they receive, whereas Fletcher Allen would not be required to pay any such income tax.

Life Insurance Policy Ownership and Beneficiary Designations

Donors and supporters of Fletcher Allen are encouraged to name Fletcher Allen as owner and/or as primary or contingent beneficiary of their life insurance policies.

To guarantee that the death benefit of any life insurance policy on your life is paid to Fletcher Allen, you must name Fletcher Allen as the primary beneficiary of your policy. Following your death, the policy proceeds would pay to Fletcher Allen. You may also name Fletcher Allen as contingent beneficiary, such that if the person you name as primary beneficiary (e.g., your spouse) predeceases you, the policy proceeds would then pay to Fletcher Allen.

If you want to make an irrevocable gift of an insurance policy on your life to Fletcher Allen during your lifetime, you would need to change the ownership of the policy to Fletcher Allen. To keep the policy in force, you would have to continue to pay the policy premiums. Your gift would be valued as the cash value in the policy at the time of the gift. Fletcher Allen may surrender any policy for its cash value or convert a policy to paid-up insurance.

Unless otherwise restricted by the donor, the proceeds of life insurance policies will be designated to general operating funds and will be used at the discretion of the CEO to meet the greatest needs of Fletcher Allen.

Gifts of Real Estate

Generally, Fletcher Allen will only accept real property located in Vermont, whether developed or undeveloped, which has a fair market value of $100,000 or more as determined by an appraisal provided by you. At the discretion of the CEO, Fletcher Allen may accept property in which you have a life interest. Prior to accepting the property, Fletcher Allen generally requires that all encumbrances (including mortgages) be discharged and that an environmental review be performed on the property to ensure there is no environmental damage. The results of the environmental review may necessitate a further environmental audit, the cost of which would be borne by you. Fletcher Allen will sell all real properties which it receives as soon as practicable. For any property in which you have a life interest, Fletcher Allen would sell the property as soon as practicable following your death.

In determining whether to accept a real property donation, the CEO will consider many factors, including the marketability of the property, what restrictions and encumbrances are on the property that need to be removed, the property’s carrying costs (e.g., real property taxes) and the like.

Unless a written agreement exists between you and Fletcher Allen as to application of the sales proceeds, the net sales proceeds from any sale of real property will be added to the general operating funds and used at the discretion of the CEO to meet the greatest needs of Fletcher Allen.

Disclaimer

Any charitable gift may have significant income, gift and estate tax consequences. You should consult with your financial, tax, and legal advisors. For any questions, please contact the Fletcher Allen Health Care foundation by phone at 802-847-2887 or development@vtmednet.org.