The Lakes Region Planned Giving Collaborative

We in the Lakes Region are fortunate to live in abeautiful place where neighbor helps neighbor,

where our voices can be heard at Town Meeting, andwhere individuals eagerly pitch in to help a favorite charity.We each have a cause that we are passionate about. One ofus might buy gifts to fulfill a needy child’s holiday wish list,another might lead a foursome in a charity golf tourna-ment, or another of us might make an extra contributionto an annual fund. Whatever our individual passion mightbe, we all care deeply about the health and wellness of ourfamilies, neighborhoods and communities.

The strength and future growth of our charitable institu-tions depends on a generous spirit of volunteerism andphilanthropy. Thank you – our past, present, and futuredonors – for helping make life better for our families,neighbors and communities. We sincerely hope thisbrochure will help you think about other ways you mighthelp your favorite cause or charity. Just consider all thepossibilities…

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For the sake of the future growth of ourcommunities, four area nonprofits havelaunched a bold initiative. The Lakes Region

Planned Giving Collaborative (LRPGC) wasfounded in 2006 to increase awareness of plannedgiving opportunities and to provide information tothose individuals who would like to leave a lastinglegacy to the charitable organizations dearest totheir hearts.

The founding LRPGC partner organizations --Community Health and Hospice, GenesisBehavioral Health, LRGHealthcare, andSpaulding Youth Center --individuallyand collectively have long anddistinguished histories of providingquality health and human services toeveryone – young or old, regardless oftheir circumstances – who lives andworks here in the Lakes Region. To ensureexcellence in services, we have always relied on thegenerosity of our donors and a caring communityto support the projects, buildings, and equipmentwe could not otherwise afford. We hope, bylaunching this new planned giving collaborativeeffort, to encourage our faithful supporters to makeplanned gifts to maintain this high standard forfuture generations.

Perhaps you or a member of your family havealready been helped by one of these nonprofitorganizations, whether seeking educational servicesfor an autistic child, mental health counseling for atroubled teen, hospice care for a loved one, orhospitalization for an ailing parent. You may be avolunteer or donor to one, more, or all of theLRPGC partner organizations. Whatever yourcircumstances, we hope you will take this

opportunity to examine your individual charitablegoals and consider whether planned giving providesyou with a way to support the causes andcommunity that you care about.

This brochure was created by the LRPGC as a toolto help you learn more about planned giving. Weencourage you to contact the Director ofDevelopment of the charity of your choice to begina conversation about your planned gift giving.These knowledgeable Directors work with a broadrange of donors to help them meet their individual

charitable goals through a variety ofprograms and activities.

Also to help you explore your plannedgiving options, LRPGC has enlisted thehelp of a number of experienced estateplanning attorneys, tax attorneys, trust

officers, financial planners, investment managers,certified public accountants, insurance and otherallied professionals. As advisory members toLRGPC, the allied professionals will be pleased toassist you with sound legal and financial advice.

We hope you will use this information to considerall of your possibilities, and to develop a plan thatmeets your personal goals and realizes yourcharitable objectives.

A Important Collaborative Initiative

Consider all of your possibilities

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C H A R I T A B L E P A R T N E R S

M A X I M U M I M P A C T

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What is planned giving?

Planned giving encompasses a wide range ofphilanthropic strategies to help you accomplishyour personal and financial goals, while leaving alasting charitable legacy. Planned giving includesgifts such as will bequests, charitable trusts, chari-table gift annuities, gifts of retirement plan assets,and life insurance.

How do I benefit from a planned gift?

Planned gifts can yield benefits such as:• Ability to make a significant gift to a charity

that is consistent with your objectives;

• Income for life;

• Savings on income and capital gains taxes;

• Savings on gift and estate taxes.

What can I give?

Donors frequently think their only option is tomake an outright gift of cash. While this is apositive way to make charitable gifts, there are anumber of other ways for you to donate to charity.Planning your gifts is a way for you to take advan-tage of the tax and estate planning benefits ofphilanthropy.

Planned Giving: Getting Started

A planned gift can be made with almost anything:cash, stocks, bonds, mutual funds, real estate,retirement plan assets, life insurance – even prop-erty such as artwork and royalties.

Can my family members benefit?

Your heirs can benefit tremendously from aplanned gift. For instance, you can design a gift topay income for life to you and your spouse.Planned gifts can also reduce your estate taxliability. The assets that you transfer to a charityremain outside of your taxable estate. You cantailor your planned gift options to benefit yourchildren and grandchildren. By involving yourfamily in your gift, you can teach your children andgrandchildren about your philanthropic values,and transfer those values to future generations.

What are my income objectives?

Perhaps you are interested in increasing yourannual income. Or, maybe you are more interestedin reducing taxable income. Either of these objec-tives can be fulfilled through a planned gift.

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M E E T I N G T H E N E E D S I N E V E R Y G E N E R A T I O N

Ways to Give

Gifts for the Future…This brochure was created to show you creativeways to make a lasting commitment to theorganization(s) you believe in—while providingfor your loved ones, taking advantage of possibletax benefits, and perhaps earning income all atthe same time.

Members of the Lakes RegionPlanned Giving Collaborative are501 (c) (3) nonprofit organizations,and donations are tax-deductible tothe full extent permitted by law.

Gifts for Today…Each of our member organiza-tions depend on donations tohelp pay for our everydayoperating expenses. We encour-age all of our donors to continuesupporting the daily work of

these organizations — while also considering aplanned gift for the future.

Gifts of Cash: Gifts of cash or checks, either to payfor operating expenses or to meet future needs, areconvenient and always appreciated.

“In Honor of” or Memorial Donations: Gifts madein honor or in memory of a loved one are a won-derful way to memorialize someone who made adifference in your life. At the same time, these giftshelp our organizations serve families in the LakesRegion that might not otherwise receive care.

Stocks and Bonds: Donating appreciated securitiescan help underwrite an organization’s expenses,while also offering greattax advantages to thedonor.

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Please note:This information should not be usedas a basis for legal and/or tax advice.When considering estate planning,you should seek guidance and advicefrom your own legal and tax counsel.

Bequests

A bequest is a wonderful way to ensure that thecharitable causes which have become important toyou and your family over the years continue to besupported beyond your lifetime. Bequests can takea variety of forms, such as gifts of cash, securities,real estate, and tangible personal property. Eachorganization has its own Gift Acceptance Policy, soplease check with the individual Director ofDevelopment for moreinformation.

Cash Bequest

The charitable organizationwill receive a specific dollaramount.

Bequest of Property

The charity receives specificassets, such as securities, aninterest in real estate (such as a residence), ortangible personal property (e.g., works of art,antiques).

Bequests... Simple and easy

Residuary Bequest

The charity receives all or a percentage of theremainder of the estate after the payment of anyspecific bequests and all estate-related expenses.

Testamentary Trust

The trust provides one or more heirs with incomefor life, after which the assets pass to the charitableorganization.

Retirement Plan

The charity you choose isdesignated as a beneficiaryof the remainder or apercentage of the remain-der of your IRA, Keogh,tax-sheltered annuity,qualified pension, orprofit-sharing plan.

Testamentary QTIP Trust

The trust provides income, and principal if needed,to your spouse for life, after which the assets pass tothe charitable organization you have selected.

Contingent Bequest

The charity is given abequest only in the eventof the death of otherbeneficiaries.

“Spaulding Youth Centerexists today because ofthoughtful people whoincluded it in their estateplans. For 70 years I havebeen associated withSpaulding and its predeces-sor, the Golden Rule Farm,as a trustee, donor andadvocate. As an estate

attorney and co-founder of Spaulding’s DanielWebster Society I know the value of planned gifts. AsI have done so, I urge you to leave a legacy and makea bequest to your favorite charity.”Arthur H. Nighswander, Esq., photo c. 1958

P L A N N E D G I F T S : H O W T O G I V E

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S U P P O R T A N D B E N E F I T

Charitable Gift Annuities

Acharitable gift annuity is a contractualagreement between you and a nonprofitorganization which allows you to make a

gift of cash or property to a nonprofit and receivefixed annual payments for life.

Part of the incomepaid to you and/oryour beneficiarymay be tax-free ortaxed at the morefavorable capitalgains tax rate,depending on theasset you select tofund the annuity.The income isbased on the age of

the income beneficiary(ies) at the time of the gift.Upon the death of the last income beneficiary, thenonprofit receives the remainder of the fund inaccordance with the terms of your gift.

Annuities can be structured in several ways.

Immediate payment charitable gift annuity

An immediate payment charitable gift annuitywould begin to pay you during the year that youmade the gift.

A deferred charitable gift annuity

With a deferred income charitable gift annuity,income payments begin on a pre-determinedfuture date. This deferral results in higher incomepayments and a higher tax deduction, as comparedwith an immediate payment gift annuity.

A stepped charitable gift annuity

A stepped charitable gift annuity can be structuredwith income steadily increasing for a period ofyears based on a predetermined schedule.

A flexible gift annuity

A flexible gift annuity allows you to receive incomewhen you need it. By selecting a range of possiblestart dates, you have control over when you begin

to receive income,and therefore morecontrol over yourincome taxes.

An education

annuity

An education annuitycan be useful for assisting a child or grandchildwith education.

Support a charity you believe in and receive annual income

In exchange for your gift of cash or property toa nonprofit, you or your beneficiary will receivefixed annual payments for life.

Nancy Eddy Wilderestablished a CharitableGift Annuity withCommunity Health &Hospice. “I really admirethe work CommunityHealth & Hospice does,and they will benefit after

I’m gone. Also, a Charitable Gift Annuity will giveme 8% income for life from my gift, as well as taxadvantages. It’s a win-win opportunity.”

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W H E N Y O U R N E E D S C H A N G E

Gifts of Life Insurance

Do you have a whole-life insurance policythat no longer fits your needs? You mayhave purchased several policies over your

lifetime, but your needs may have changed. If yourchildren are now on their own and the mortgage ispaid, it may be a goodtime to re-evaluate yourlife insurance. Beforeyou cash in that un-wanted policy, however,consider gifting it to acharity. Why? Becauseby simply changing theownership of the policyto the charity, you canmake a significant gift,possibly reduce your estate taxes, and get anincome tax deduction now.

Here are some possibilities:

Give a paid-up policy or a policy on which

you are still paying.

• Your deduction is whichever is less: the cash surrender value, or the net premiums paid on the policy.

Purchase a new policy for the charity

• You may deduct the premiums if the charity is named as the owner of the policy.

Ways to give through a life insurance

policy and to provide for a loved one at

the same time:

• Name the charity as a primary beneficiary to receive all or part of the policy proceeds, along with your spouse and/or other loved ones;

• Name the charity as a second beneficiary to receive part of or all of the proceeds in the event that all of the primary beneficiaries have predeceased you.

By naming the charity as beneficiary, you retainownership of and access to the policy’s cash value.Although you are not allowed to receive a chari-table deduction for either the value of the policy orsubsequent premium payments—because you

retain ownership—you can use the policy values inan emergency, or you can change the beneficiary.Eventually the face value of the policy will beincluded in your gross estate; however, there wouldbe an estate tax charitable deduction for theproceeds paid to the charity.

Excellent long-term flexibility and planning

Tom andKarenClairmonthave takenout a lifeinsurancepolicy naming

LRGHealthcare as the beneficiary, allowing themto make a larger legacy gift than they thoughtpossible.

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Under current tax law, individuals generallymust report distributions from theirqualified retirement plans, such as IRAs,

Keoghs, qualified pension or profit-sharing plans,tax-deferred annuities, and some TIAA-CREF plans,as taxable income.

In addition, distributions from retirement plans atthe death of the account-holder can be subject toestate taxes. In a largeestate, these income andestate taxes can leave lessthan 30 cents on thedollar of the plan’sbalance for your heirs(excluding your spouse).

However, through 2007,people age 70½ or older are allowed to withdraw upto $100,000 annually from their individual retire-ment accounts, tax-free, if they give the moneydirectly to a charity.

By naming a charity as the beneficiary of the remain-der of your retirement plan after the death of you oryour spouse, 100 percent of the plan’s balance wouldbe available for the charity’s use, since the distribu-tion would avoid both income and estate taxes.

To make this gift, you can simply notify your plan’sadministrator of your wish to change the beneficiary.A "change of beneficiary" form will be required.Should you designate that your qualifiedretirement plan come directly to a charity atyour death, your spouse will need to signconsent to the designation. A consent signatureis not necessary for an IRA unless you reside ina community property state.

L E A V E A C H A R I T A B L E L E G A C Y

Retirement Plans

If your spouse and children are currently thebeneficiaries of your retirement plan, you cancontinue to keep them as beneficiaries, and alsoinclude a charity as the beneficiary of a portion ofthe plan. Upon your death, the plan administratorcan "cash out" the charity’s share of the accountwithout affecting your family’s portion of the

account, so that thecharity and your heirs willboth benefit from yourretirement savings.

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S U P P O R T A N D P R E S E R V E

Charitable Remainder Trusts

A charitable remainder trust(CRT) is an individually managedaccount from which payments are madeto you and/or your named beneficiary(ies)for your lifetime or a term of years. A CRTallows you to receive fixed or variable income,obtain tax benefits, and offset or avoid capitalgains. At the end of the trust term or uponthe death of the last named beneficiary, the balanceis transferred to the nonprofit organization thatyou have selected.

The most common CRTs are annuity trusts andunitrusts. They differ in how income from thetrust is calculatedand distributed.CRTs can bestructured in avariety of ways tosuit your needs.

Make a Gift

Favorite

That ProvidesBenefits to

Your Heirs,You,

and Your

Charity

Charitable Lead Trust Support Your Favorite Charity and Preserve an Inheritance.

With a charitable lead trust, you transfer assets of cash or property to a trustee. The trustee pays an annual sum to the nonprofit you have selected, for a specific term of years. The assets of the trust are invested and managed by the trustee. When the trust terminates, the principal plus any appreciation istransferred to your beneficiary(ies), typically,but not necessarily limited to, children or grand-children.

You receive a federal estate tax deduction equal tothe estimated value of the annual trust paymentto the nonprofit. Any appreciation in assetsduring the term of the trust is not subject toadditional estate tax. Thus, you are often able topass on a larger estate after tax to your heirs thanotherwise would be possible.

Photo courtesy ofThe Citizen Publishing Company,Kevin Sperl / Photographer

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Real Estate:

A gift of real estate can be an appealing way to makea commitment to a charity and to simultaneouslyrealize important tax and income benefits. You cangift either all or a percentage of the property. Youmay be able to significantly reduce the amount of

income, capital gain, and estate taxes you otherwisemight have to pay. You may also be able to earn anincome from your gift.

There are many types of real estate suitable for agift: personal residence, vacation property, commer-cial property,building lot,undevelopedland, farm orranch, etc.

A N A P P E A L I N G C O M M I T M E N T

Gifts of Real Estate Personal Property&Art and Other Tangible Personal Property:

Property such as works of art, antiques, stamps,coins, and jewelry may be subject to estate taxes.Should you wish to donate this type of propertyduring your lifetime, you may reduce your taxliability.

If your gift of tangible property is directly relatedto the charity’s mission, you may take an incometax deduction for the full fair market value of theproperty as determined by an independent quali-fied appraisal.

If the gift is for an unrelated use, your deductionwill be based onthe cost basis ofthe property.

Quite often, youcan use tangiblepersonal propertywith an unrelateduse to fund a lifeincome arrange-ment, turning anon-incomeproducing assetinto an income-producing asset. Generally, thereis no income tax deduction available.

Please note:Each organization has its ownGift Acceptance Policies, soplease discuss your specific giftideas with the Director ofDevelopment in advance.

Tangible gift opportunities

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The Lakes RegionPlanned Giving Collaborative

Genesis Behavioral Health(GBH) is the Lakes Region’scommunity mental healthcenter. For over 40 years, wehave enhanced the quality oflife in our communities by

providing services that help people lead independentlives. We help people gain skills and confidence sothat they can once again contribute to their commu-nity. In the face of mental illness and life’s challenges,GBH is here to make a difference, one life, one fam-ily, one community at a time.

Genesis Behavioral Health, Inc111 Church Street, Laconia, NH 03246Phone: 603-524-1100 Fax: 603-528-0760www.genesisbh.org

The Mission of CommunityHealth & Hospice, Inc. is tostrengthen the quality of life byproviding a family of home andcommunity health care servicesfrom birth to bereavement.

Community Health & Hospice serves Lakes Regioncommunities and provides Home Care (nursing andrehabilitation services in the home); acomprehensive, team-based Hospice program; theYoung Family Program (direct health care andeducation for children and families); and SupportServices.

Community Health & Hospice, Inc.780 N. Main Street, Laconia, NH 03246Phone: 603-524-8444 Fax: 603-524-8217www.chhnh.org

LRGHealthcare is committedto making healthcareavailable, affordable, andaccessible to everyone in theLakes and Twin Rivers regions.The healthcare system’s

mission is to serve our community by promotingphysical, emotional, social, environmental andspiritual health. LRGHealthcare is composed of twohospitals, Lakes Region General Hospital andFranklin Regional Hospital, several primary care andspecialty care medical practices and other communityservices. It provides a comprehensive array of healthand wellness services including acute care, surgicaland rehabilitative services.

LRGHealthcare80 Highland Street, Laconia, NH 03246Phone: 603-527-2865 Fax: 603-527-7185www.lrgh.org

Spaulding Youth Center isdedicated to improving andenriching the lives of children,youth, and families throughprograms that foster the promiseof becoming responsible citizens insociety. Located in Northfield,

Spaulding Youth Center offers high quality intensiveresidential treatment, educational and foster careservices for children and youth with autism or otherneurological impairments and boys with emotionaland behavioral challenges from communities acrossNew Hampshire.

Spaulding Youth Center FoundationP.O. Box 247, Tilton, NH 03276Phone: 603-286-7500 Fax: 603-286-7511www.spauldingyouthcenter.org

Founding Partners

Often the greatest opportunities forphilanthropy occur just when you are

making other major business, personaland financial decisions. When you are writing orrevising a will, contemplating the sale of realestate or other major asset, planning forretirement, or experiencing a financial windfall,you can work with legal or financial experts tomaximize these financial opportunities foryourself, your heirs, and the charitable causes you

The Lakes RegionPlanned Giving Collaborative

Advisory Council

care about most. To help you explore yourplanned giving options, the Lakes RegionPlanned Giving Collaborative has enlisted thehelp of experienced estate planning attorneys, taxattorneys, trust officers, financial planners,investment managers, certified publicaccountants, insurance and other alliedprofessionals. As advisory members to LRPGC,the allied professionals will be pleased to assistyou with sound legal and financial advice.

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Alexandra T. Breed Esq.McLane, Graf, Raulerson &Middleton, P.A.15 North Main StreetConcord, NH 03301Tel. 603-226-0400Fax 603-230-4448alexandra.breed@mclane.com

Margaret A. Demos Esq.Martin, Lord & Osman, P.A.One Mill PlazaLaconia, NH 03246Tel. 603-524-4121Fax 603-528-3635mad@mlolaw.com

Dennis Denoncourt, CPALynch & Denoncourt PA67 Water StreetLaconia, NH 03246Tel. 603-524-9065Fax 603-528-4529ldcpa@metrocast.net

James F. Dirubbo, CPAMalone, Dirubbo & Co., PC501 Union Avenue Suite 1Laconia, NH 03246Tel. 603-528-2241Fax 603-528-7624jdirubbo@mdccpas.com

The Lakes Region Planned Giving Collaborative

A D V I S O R Y C O U N C I L M E M B E R S

Michael Fogarty, CFP, CLUPresidentThe Foundry Financial Group, Inc.67 Water Street, Suite 101ALaconia, NH 03246Tel. 603-528-5171Fax 603-524-0769www.foundryadvisors.commfogarty@metrocast.net

Denis R. Hebert,CLU, ChFC, LUTCF, CLTCPrudential Financial783 North Main StreetLaconia, NH 03246Tel. 603-528-7797Fax 603-528-7796denis.hebert@prudential.com

Bonnie HuntSenior Vice President andSenior Wealth ManagerCharter Trust10 NH Route 25Meredith, NH 03253Tel. 603-279-2261Fax: 603-279-1458bhunt@chartertrust.com

John Kitchen Esq.John Kitchen Law Offices395 South Main StreetLaconia, NH 03246Tel. 603-524-5765Fax 603-524-5766www.johnkitchenlawoffices.comjohnjklaw@metrocast.net

www.genesisbh.org www.spauldingyouthcenter.orgwww.lrgh.orgwww.chhnh.org i

The Lakes Region Planned Giving Collaborative

A D V I S O R Y C O U N C I L M E M B E R S

Linda KnottCertified Financial Planner™ProfessionalLinsco/Private Ledger155 Court StreetLaconia, NH 03246Tel. 603-832-0002Fax 603-528-7791www.lpl.com/linda.knottLinda.knott@lpl.com

Warren F. Lake Esq.Haughey, Philpot, & Laurent P.A.816 North Main StreetLaconia, NH 03246Tel. 603-524-4101 ext. 20Fax 603-524-1775warren@hpllaw.com

Mark LavalleSenior Vice President –Trust OfficerLaconia Savings Bank62 Pleasant StreetLaconia, NH 03246Tel. 603-527-3233Fax 603-527-3235lavalle@laconiasavings.com

Willard G. “Bud” Martin Esq.Martin, Lord & Osman, P.A.One Mill PlazaLaconia, NH 03246Tel. 603-524-4121Fax 603-528-3635wgm@mlolaw.com

Scott McGuffin Esq.Scott D. McGuffin Attorney at Law67 Water Street Suite 107Laconia, NH 03246Tel. 603-524-0424www.mcguffinlaw.comscott@mcguffinlaw.com

Peter Millham Esq.Wescott, Millham & Dyer28 Bowman StreetLaconia, NH 03246Tel. 603-524-2166Fax 603-528-2122www.wmdlawyers.compvmillham@wmdlawyers.com

John A. Rogers Esq.John A. Rogers Attorney at Law36 Eastman RoadMeredith, NH 03253Tel. 603-524-8997Fax 603-524-8997jackr@cyberportal.net

William SirakVice President Not-for-Profit GroupInvestment Management ServicesCitizens Banks875 Elm StreetManchester, NH 03101Tel: 603-634-7752william.sirak@citizensbank.com

www.genesisbh.org www.spauldingyouthcenter.orgwww.lrgh.orgwww.chhnh.orgii

The Lakes Region Planned Giving Collaborative

A D V I S O R Y C O U N C I L M E M B E R S

Tom Space, CFP, CTFAAdvisors Financial PlanningGroup, LLC2 Airport Road Suite 7Gilford, NH 03249Tel. 603-524-1599Fax 603-524-3099Tom@AdvisorsPlan.com

Scott Sullivan, CLUBay Point Financial45 South River RoadBedford, NH 03110Tel. 603-626-6699Fax 603-626-6688scott@bayptfin.com

Sean C. Sullivan, CPANathan Wechsler & Company, PACertified Public Accountants70 Commercial Street Suite 401Concord, NH 03301Tel. 603-224-5357Fax 603-224-3792ssullivan@nathanwechsler.com

Kathy Sweeney, CPAKathleen E. Sweeney CertifiedPublic Accountant,Financial PlannerPO Box 1259Center Harbor, NH 03226Tel. 603-253-4011Fax 603-253-4051ksweeney@metrocast.net

Deborah Tarbox, CPAMelanson Heath & Company, PC149 Hanover StreetManchester, NH 03101Tel. 603-669-6130Fax 603-624-6757dtarbox@melansonheath.com

Michael F. Ventura, CSAPresident & CEOIndependence Trust Company386 Central StreetFranklin, NH 03303Tel. 603-934-8373Fax 603-934-1429ventura@independencetrustco.comwww.independencetrustco.com

www.genesisbh.org www.spauldingyouthcenter.orgwww.lrgh.orgwww.chhnh.org iii

All advisory council members are volunteers and they or their companies have nocontractual affiliation with the Lakes Region Planned Giving Collaborative.