Ed Reid

Gifts to Morristown Medical Center Also Help Loved Ones

Ed Reid smiling

Longtime donor Ed Reid wanted to be clear on one point regarding his two recent donations of $1 million each in gift annuities toward Campaign 3SIXTY at the Foundation for Morristown Medical Center: "No one had to twist my arm."

"My late wife, Lois, was treated with so much kindness during her stay at the hospital, particularly by Dr. Stephen Schreibman," says Mr. Reid. "I will never forget how well she was cared for by everyone on staff."

Several years ago, Mr. Reid permanently endowed the Lois A. Reid Fellowship in Breast Imaging by giving $1.3 million to the Carol W. and Julius A. Rippel Breast Center, where Lois had been treated for breast cancer.

"As far as my two recent donations to the hospital, I chose the gift annuity approach because it gave me the opportunity to ensure an income source for both my wife, Ruth, and my sister," says Mr. Reid. "I named them each as the principle beneficiary of their own gift annuity because this will guarantee a steady stream of income to them for life."

In this situation, the hospital receives monies that can be used exactly like cash. There is no need for an attorney because the donor simply can transfer securities or give cash to the Foundation, and the Foundation will draft the agreement. One or two income beneficiaries can be chosen. The best news, for the donor, is that there are capital gains tax savings attached to this transaction.

In the last few years, Mr. Reid has changed his permanent address to Florida, but the ties that were formed with the hospital during his 42 years as a resident of Madison, New Jersey, remain strong. "The hospital has shown me that they are moving ahead and are always expanding their medical horizons," says Mr. Reid. "This kind of forward thinking is very appealing to me."

A charitable bequest is one or two sentences in your will or living trust that leave to the Foundation for Morristown Medical Center a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to the Foundation for Morristown Medical Center, a nonprofit corporation currently located at 475 South Street, Morristown, NJ 07960, or its successor thereto, ______________ [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to Morristown Medical Center or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Morristown Medical Center as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Morristown Medical Center as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and Morristown Medical Center where you agree to make a gift to Morristown Medical Center and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

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