Questions about the WQLN and Your Will:

What is the legal name of the station?
a. Public Broadcasting of Northwest Pennsylvania, Inc.

What is your address and phone number?
a. 8425 Peach St., Erie, PA 16509
b. 1-800-PBS-TV54 (1-800-727-8854)

How do I include WQLN in my will?
a. Make an appointment with an attorney to plan your will.

How does the station find out about a gift? For two reasons, it is wonderful for you to let WQLN know that you have included the station in your will.
a. With your approval, we would like to be able to acknowledge your generosity.
b. This information helps us with future planning and program purchasing decisions.

Can WQLN offer advice to those who ask?
a. No. We must always refer you back to your own financial planner, accountant or attorney. We can, however, discuss the following information:
1. The types of gifts we accept
2. How a charitable bequest can benefit the station.
3. Possible uses of a bequest.
4. Opportunities for naming a special fund or project in memory of the donor.

What types of gifts does WQLN accept?
a. Cash – A cash gift from an estate or a percentage of an estate (will).
b. Stock
c. Property
d. Retirement Plans and Life Insurance
e. Life Income – Charitable Remainder Trust or Charitable Lead Trust
f. Memorial and Tribute Gifts

What are the different ways to leave WQLN in a will?
a. Gift of a specific cash amount - This is nice for the station as they will know exactly what they are going to receive from the donor and can plan accordingly.
b. Specific bequest that provides a gift of property - A home, land, building etc…
c. Percentage bequest – A gift of a certain percentage of a person’s estate.
d. Residuary bequest – After all the other bequests have been taken care of including funeral expenses, bills, taxes and attorney fees, the balance or a portion of the estate may go to the station.

Questions about the Trusts, Annuities and Insurance:

There are always specific reasons for making an irrevocable trust agreement. Perhaps it involves a family business where some of the family members are getting on in years and the family wants to make certain that management continues to run smoothly even if hindrances, such as senility, enter the picture.

Many times the reasons for an irrevocable trust involve estate and/or income tax avoidance. In order to be successful in such avoidance, the trustor must not have any direct or indirect power or control over the trust property or income. The regulations on this subject, set out in the Internal Revenue Code, must be carefully followed.

What is the difference between a charitable remainder unitrust and a charitable remainder annuity trust?

The major difference is in the valuation of the assets of the trust, which establishes part of the calculation for the determination of the amount of income received by the income beneficiary(-ies). The annuity assets are valued at the time the assets are placed in the trust. The trust assets are never revalued. Annual payments remain the same, whether the assets appreciate (increase in value)or depreciate (lose value).
The assets in the unitrust are revalued annually. If the trust assets appreciate, the payment to the income beneficiary(-ies) will increase. If the trust assets depreciate, the payment will decrease.

What happens to my assets in a trust for a charity if the charity goes out of business before the expiration of the trust?

Your trustee is authorized to name a substitute, if that is the sole charity.

Should I name a charity as trustee of my charitable remainder trust?

This is often done if the organization is qualified to so act under local law. The organization's representatives can satisfy you in that regard. Often they will serve without fee, which is an additional incentive.

Can I use my insurance to benefit charitable organizations?

Yes. This is an area overlooked by many. You can name one or more charities as alternate or as primary beneficiary. Furthermore, if you no longer need the policy proceeds in your estate for use now, you can transfer ownership of the policy to the charity or charities. If the policy has cash loan value, the charity can draw this out and use it. In this case, you not only receive a charitable gift deduction, but any additional premiums you pay are tax deductible for you now. And, on your death, the charity receives the balance of the policy proceeds and none of it is included in your estate for tax purposes.

How can I fund a charitable gift annuity and how is my income calculated?

The usual funding sources for a charitable gift annuity are cash and marketable securities. There can be tax benefits associated with the gift of appreciated securities (the current market value exceeds the cost or basis value). As a gift annuity is considered partially a gift and partially an annuity, part of the gift avoids capital gains tax entirely. Real estate and other marketable assets may also be used. Generally, the charity will convert the assets to cash to fund the annuity.
The income provided you by the annuity is determined by your age and the age of any additional beneficiary and is calculated using tables established and filed with regulatory agencies under which the charity operates its annuity program.

Can I set up a charitable gift annuity and delay the start of the income until I will more likely need it, such as at my retirement, when my income is lower?

Yes, there is flexibility in the establishing of charitable gift annuities that make them a popular and effective retirement planning vehicle. Using a deferred gift annuity, the annuity earnings accumulate on a tax-deferred basis. Thus the deferred payment annuity accomplishes several things. First, the donor receives a tax deduction in the year the annuity is established, which would in theory be when the donor is in a higher tax bracket. Secondly, the gift to the charity becomes larger as the deferred earnings increase the annuity's principal. Finally, since the deferred payment annuity grows in size while income is deferred, the ultimate income will be more per year.

Questions about the Pooled Income Fund:

No. It is unlimited.

How does the rate of return affect the size of the income tax charitable contribution deduction?

The lower the rate of return, the higher the deduction will be.

Who can receive income earned by the Pooled Income Fund?

1. YOU can receive quarterly income or the rest of your life.
2. YOUR DESIGNATED BENEFICIARY can receive quarterly income for rest of his or her life.
3. ANY TWO PERSONS can receive quarterly income for the rest of their lives, concurrently and/or consecutively:
a. you and another
b. two others

How is the income generated by the Pooled Income Fund treated for tax purposes?

All of your income from the Fund will be taxed to you as ordinary income.