There are a number of methods to consider for making larger gifts to The Family Tree. By making a planned gift, you can create a lasting legacy while also meeting your own personal and tax objectives. Individual results vary, so contact your tax advisor to discuss how these options may work for you.
Bequests / Living Trust
A charitable bequest is one of the easiest and most flexible ways to leave a gift to The Family Tree. You can include language in your will or trust specifying a gift be made to family, friends or The Family Tree as part of your estate plan. The bequest can be a gift of cash, securities, or real property, made through your will or living trust. The amount of the gift is exempt from estate taxes.
Did you know that up to 60-70% of your retirement assets may be taxed if you leave them to your heirs? You may wish to leave other types of assets to your heirs and make a gift to The Family Tree in your will or trust of your IRA, 401(k), 403(b), pension or other tax-deferred plan. If you designate The Family Tree as beneficiary, your IRA assets will not be taxed at your death, providing the full value of your gift.
If you, or someone you know, are 70½ or older you may be interested in a way to lower the income and taxes from your IRA withdrawals. An IRA charitable rollover to The Family Tree is a way you can help continue our child abuse prevention work, while benefitting yourself this year. It can reduce your taxable income, even if you do not itemize deductions.
Gifts of Life Insurance
If you have a life insurance policy that has outlasted its original purpose, consider making a gift of your insurance policy to The Family Tree. You may do so by contacting your life insurance provider, requesting an ownership change and beneficiary designation from the insurer and providing The Family Tree as the owner and beneficiary of your policy. The Family Tree encourages the use of fully paid insurance policies as charitable gifts. You may be entitled to an income tax charitable deduction for the gift of the policy.
Charitable Remainder Trusts
If you are concerned about the high cost of capital gains tax with the sale of an appreciated asset, a charitable remainder trust may offer the solutions you need. You may defer capital gains tax and receive a charitable income tax deduction. Here’s how it works: you or someone you designate will maintain a current interest in the trust for your lifetime or a set number of years, and then the remainder interest passes to The Family Tree. A unitrust pays the current beneficiary a fixed percentage of the trust’s value each year. An annuity trust pays the current beneficiary a fixed amount each year based on a percentage of the trust’s value on the date of gift. A current charitable deduction for the present value of either gift may be available in the year of gift and is based on IRS actuarial tables. You may make additional gifts to the principal of the charitable remainder unitrust in future years; an annuity trust, however, cannot receive additions. If the donated assets consist of appreciated securities, capital gains taxes may be deferred. Assets gifted to a charitable remainder trust will also reduce your estate tax exposure.
Charitable Lead Trusts
If you are looking for a way to pass on some of your assets to your family while reducing or eliminating gift or estate taxes, a charitable lead trust is an excellent option. Here’s how it works: you fund a trust that pays The Family Tree a set amount for a number of years. You may also plan for this fund to be established at your death. You may receive a gift tax deduction at the time of your gift, or your estate may receive an estate tax deduction at the time of your death in the case of a bequest. After a set period of time, your family receives the trust assets plus any additional growth in value. Depending on how the charitable lead trust is structured, you may also benefit from an income tax deduction.
Stocks, Bonds, Mutual Funds, Options
The Family Tree gladly accepts gifts of stocks, bonds, mutual funds or options. Contact your broker about a TOD (Transfer on Death) or beneficiary designation.
Gifts of Property
Almost any form of property – real estate, personal property, vacation homes, insurance policies and business interests – can provide a suitable charitable gift. If you are considering a gift of property, please consult your attorney, accountant, financial advisor and The Family Tree to ensure that the gift will meet your intention to support The Family Tree, in addition to your financial interests.
For more information on setting up a planned gift, submit the following form!
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