This summary is provided as an educational service and is not intended as legal or tax advice. Please consult your own advisors before making a decision based on this information.

Gifts of cash (currency, check, money orders or bank drafts) are the simplest, most popular form of giving and provide beneficial income tax deductions.  Cash gifts in a single year may not exceed 50% of your adjusted gross income. Gifts over that total may be claimed for up to five additional years for tax reporting.

Owners of marketable securities (those listed on an exchange) may obtain substantial tax benefits by transferring those assets directly to Masonic Homes of Kentucky.  It is best to give securities owned for at least one year that have increased in value.

Typically no tax is owed on the gain if the stock is transferred directly to the Masonic Homes, and you may receive an income tax deduction equal to the fair market value of the stock on the date of the transfer.

Gifts of marketable securities cannot exceed 30% of your adjusted gross income; gifts exceeding that amount may be claimed for up to five years. If the securities have decreased in value, consider selling the asset, claiming a loss and giving the cash to the Masonic Homes, providing you an offsetting deduction.

Bequests or gifts by will in any amount are an easy way to continue your support of the Masonic Homes. You may designate the Masonic Homes as a beneficiary using the following or similar language:

I hereby bequeath to the Masonic Homes of Kentucky, Inc., located at 3761 Johnson Hall Drive, Masonic Home, KY 40041, the sum of ($_____dollars) or (_____% of my residuary estate).

Ask your financial advisor to help determine what’s most appropriate for your circumstances.

Gifts of real estate, especially long-term appreciated real estate, typically provide immediate income tax deductions and avoid capital gains. You may give a personal residence, vacation home or farm, and continue to live on the property the rest of your life. During that time, you are responsible for maintenance, insurance and taxes, but income tax deductions usually are available. Gifts of real estate are subject to specific policy guidelines.

Gifts of retirement plan assets include naming the Masonic Homes the beneficiary of your IRA, 401(K) or other qualified plan.  After your lifetime, the remainder is passed to the Homes. If you have heirs who also may benefit from your estate, consider giving them other assets with a lower tax cost.

If you are older than 70 ½, new legislation allows each individual to give up to $100,000 a year to the Masonic Homes from a traditional or Roth IRA without incurring income tax on the withdrawal. This provision may end December 31, 2009, so act now to take full advantage.

Life Income Gifts (including charitable gift annuities, deferred gift annuities, charitable remainder trusts and life insurance policies) provide income and tax benefits to the donor along with support for the Masonic Homes.  Discuss these options with your financial advisor to learn how you achieve maximum benefits.