The Scotts Leave a Gift That Keeps Giving

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Paul and June Scott

Elm Crest Retirement Community in Harlan, Iowa, recently became the benefactor of a tremendous gift. The estate of June Scott, wife of the late Paul Scott, recently contributed more than $676,000 to five entities in the western Iowa county of Shelby, including more than $135,000 to Elm Crest. June was a resident at Elm Crest during the last year of her life and her mother, Etna Swensen, was also a past resident. June's generosity, however, came from a deeper place than her love of Elm Crest.

"Paul and June were great stewards of their farming operation and their finances," says Rowland Burton, the executor of the estate. "It's a great contribution to these organizations which will allow them to grow and expand their endeavors. ... They both felt giving money locally was very important. This was their way of returning back to the communities the rewards of their life."

June and Paul were both born and raised in Shelby County. They were married in June of 1948 at Immanuel Lutheran Church in Harlan. After the wedding, Paul and June moved to their Center Township farm two and half miles east of Harlan where they remained until 1988. Shortly after Paul's retirement, the Scotts built a new home east of Harlan. Paul went to be with the Lord on Nov. 24, 1999. June joined him on May 18, 2010; both are buried in the Jacksonville Cemetery.

"Their gifts are a wonderful testament and legacy to the five different organizations," Rob Hall, the Scotts' attorney, says. "The Scotts' gifts encourage others to give back to their communities."

A charitable bequest is one or two sentences in your will or living trust that leave to American Baptist Homes of the Midwest 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 plan

The official bequest language for American Baptist Homes of Midwest to share with your attorney is: "I, [name], of [city, state, ZIP], give, devise and bequeath to American Baptist Homes of Midwest [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 ABHM 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 ABHM 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 ABHM 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 ABHM where you agree to make a gift to ABHM 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.
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