Article featured in Fall 2009 Donor Report
"Ordinary people show extraordinary generosity every day by leaving legacy gifts to charity in their wills and estate plans," says Michael Delauter, Chairman of the FMH Planned Gifts Committee. "Time and again, people from all walks of life—with different income levels, professions, and passions—step forward to remind us that we can all make a difference that lasts well beyond our lifetimes, making life better for generations to come."
Frederick County residents need look no further than Clover Hill residents John and Millie Cartee for a local example of this type of extraordinary generosity. The Cartees recently made a provision in their will for Frederick Memorial Hospital, a gift the couple modestly hopes will "make a difference" to future generations.
A lifelong resident of Frederick County, John Cartee was a manager for Economy Oil, now known as Griffith Energy. Millie, a Walkersville High School graduate who grew up in Glade Valley, was an office manager at Frederick Motor Company for 35 years. She also served various community organizations as a volunteer, including 4 years as the FMH Auxiliary's Recording Secretary—eventually logging over 2,000 hours in the Hospital Gift Shop. Following his retirement in 2001, John joined Millie as a member of the FMH Auxiliary, and has spent over 1000 hours working in the Emergency Department. Actively involved in their church, the couple celebrates their 54th wedding anniversary in October 2009.
While both John and Millie Cartee have dedicated a great deal of time and energy to Frederick Memorial Hospital, both view their relationship with FMH as extremely rewarding.
"I can speak for both of us when I say that neither Millie nor I have ever regretted a day we've spent volunteering," says John. "We have enjoyed everything about it."
Following their rewarding experience as FMH volunteers, the Cartees felt that making a provision to support the hospital with a financial bequest was a natural extension of their commitment.
"Although the hospital often receives bequests it does not expect," said Ken Coffey, Vice President and the Hospital's Chief Development Officer, "we appreciated knowing about Mr. and Mrs. Cartee's intentions in advance. Knowing ahead of time gives the hospital an opportunity to recognize these generous donors while they are still living."
"We are grateful to the Cartees, and all the members of the hospital's Lasting Legacy program. Because of their generosity and concern for others, their memories will live on, and their gifts will remind us all that we, too, can make a difference in the lives of others."
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.
A charitable bequest is one or two sentences in your will or living trust that leave to Frederick Memorial Hospital 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 planBequest Language
"I, [name], of [city, state, ZIP], give, devise and bequeath to Frederick Regional Health System [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 FMH 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 FMH 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 FMH 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 FMH where you agree to make a gift to FMH 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.