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Plan your gift to fit your changing life circumstances
Bequest to charitable remainder trust: save taxes and increase income
Susan, because of uncertainty about the economy, was initially uncomfortable transferring assets. However, she was willing to amend her will to include a charitable bequest. As time passed and she became more financially secure, she decided to make her gift via a charitable remainder trust. She contributed to the trust securities equal in value to the projected amount of the bequest and then removed us from her will. This is appealing to us because we could count on her future gift. It is beneficial to Susan because she received a substantial deduction that reduced her taxes, she avoided tax on the gain when she transferred the securities and she increased her income.
When income is no longer needed, collapse a charitable trust
Because he was comfortable transferring some of his capital if he could receive income, Roger initially established a charitable remainder trust. As his income from other sources grew, Roger realized that he did not need the income from the trust. He contributed his income interest in the trust to us, which he had previously named as beneficiary of remaining trust assets. All trust assets were immediately available to us for current use. Roger received another tax deduction that reduced his current income tax, and he had the satisfaction of making an impact now.
Combine present gifts and a future legacy gift
Sarah was recognized for making contributions for 20 successive years. Her recent gift is $4,000 designated for a purpose to which she is committed. To ensure her support continues, she includes a bequest in her will for $100,000 to establish a named endowed fund with the annual income used for the stated purpose. This endowment income, associated with her name, continues indefinitely. It will grow as the endowment increases in value. Many people, like Sarah, combine present outright gifts and a future legacy gift to secure their legacy. |
