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Gifts by Estate Note

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What Is an Estate Note?

• An Estate Note is an irrevocable pledge or debt against the donor's estate.
• This instrument binds the donor's estate to the extent not paid during the donor's lifetime.
• Estate Notes may be pledged for either one or two lives. With a two-life Estate Note, the obligation is binding only on the estate of the person who lives longer.
• recommends this option for persons 65 years of age or older.

Benefits of Estate Notes:

• You may make a charitable gift to after your lifetime without revising your current will or estate plans.
• There is no obligation to transfer assets during the donor's lifetime. However, the Estate Note offers the flexibility to make payments against the Note during one's life.
• Dollar amounts of Estate Notes count towards fundraising campaigns, while bequest intentions do not. If is already in your will, an Estate Note may be signed for some portion of the bequest you expect to come to .
• 's Estate Note is a single page-document.

Tax Considerations

• Signing an Estate Note does not qualify the donor for a charitable deduction.
• Payments against the obligation during a donor's lifetime will provide income-tax deductions in the year made (up to the full amounts permitted by the IRS tax code).
• Unpaid Estate Note balances will provide an estate-tax deduction. Any amount outstanding on the Estate Note is deducted from the gross estate before any taxes are applied.

Next Steps

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• I’d like to see the diagram of this gift
• I’d like to have a confidential conversation with a gift-planning
  officer about this gift plan or other options
• I’d like a personal calculation of this gift

Please note: Because the federal estate tax has been repealed for 2010, there is no current estate tax in 2010 for the gifts described on this page. However, the consensus opinion among professionals is that Congress will enact an estate-tax law that may be retroactive to January 1, 2010. It is very important that you seek the advice of your estate-planning attorney to determine what changes, if any, need to be made to your existing estate plans, and then again if Congress reinstates the estate tax sometime later this year.
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