Planned Gifts
Charitable Remainder Unit Trust
A donor may elect to create a separate life income trust to provide either a variable or fixed income trust. The fixed income approach is called a Charitable Remainder Annuity Trust and is described in the next section. The Charitable Remainder Unitrust provides income to the donor, or a designated non-charitable beneficiary, based on a fixed percentage payout rate (not less than 5 percent of the fair market value of the trust assets determined annually).
The income from the trust continues for the rest of the donor's life (or for the life of another non-charitable beneficiary), and in certain cases, may be passed on to a survivor if the donor desires. Further a donor may establish an income interest for a beneficiary other than him/herself. For example, a parent or other individual the donor wishes to aid or support.
ADVANTAGES: Creating a Unitrust entitles the donor to a charitable deduction for the value of The Foundation’s remainder interest, and/or based on the age of the income beneficiary. Transfers are exempt from capital gains tax and the same limitations and carryover provisions apply as previously stated. In addition, the donor receives a guaranteed income for life and The Foundation receives a significant gift in their name.
Charitable Remainder Annuity Trust
If the donor is concerned primarily with receiving, (or having their designated beneficiary receive) a specified amount during the term of the trust, they may prefer to establish an Annuity Trust. In this case, the required annual income distribution amount is predetermined by the donor at a minimum of 5 percent of the fair market value of the trust assets at the date the assets are transferred to the trust. The same tax deduction, limitation and carry-over regulations apply to the Annuity Trust agreement as in the Unitrust agreement.
ADVANTAGES: Creating a Charitable Remainder Annuity Trust entitles the donor to a charitable deduction for the value of The Foundation’s remainder interest, exactly as it does when property is transferred to a Charitable Remainder Unitrust. Transfers are exempt from capital gains tax and the same limitations and carry-over provisions apply as with the other agreements. In addition, the donor will have the satisfaction of making an important investment in the mission of The Foundation.
Bequests
The Foundation encourages supporters to consider opportunities to provide significant support for the future through testamentary wills and trusts.
When planning your estate, you can consider an outright bequest to The Foundation. Also, certain bequests in trust are not subject to estate taxation. As in the case of lifetime gifts, the donor's exclusion, because of the special statutory tax benefits which are granted for charitable contributions, is the face value of the gift rather than the actual cost which may be considerably less. A bequest should always be drawn by, or with the advice of an attorney. A bequest can be any of the following: 1. A Specific Bequest of a dollar amount or of particular securities or other property; 2. A Residuary Bequest of all, or a portion of your estate, after payment of specific amounts to other beneficiaries; 3. A Contingent Bequest to take effect only in the event that the primary beneficiaries under your Will die before you; 4. A Testamentary Trust, which takes the form of a Charitable Remainder Unitrust or a Charitable Remainder Annuity Trust, the corpus of which will be paid to The Foundation upon death of the trust's income beneficiary.
Gifts-In-Kind
Many individuals want to give to The Foundation but do not have the financial resources. Gifts-in-kind affords them the opportunity to give items or properties which are valuable to the organization for either utilization, or to sell. Examples include: office furniture, waiting room furniture, real estate, computers, television sets, etc. If you have a gift that you would like to donate, please call The Foundation Office at (337) 494-3226 to discuss the type of gift you have and to determine whether The Foundation can accept your generosity.
