Creating a Legacy
Estate-Planned Giving
Estate-Planned Giving
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Donors are the life blood of a community
foundation. An array of choices are available to
donors for making a gift to a community foundation,
including deferred gifts made via a will or a trust as
part of your estate planning process.
WHAT CAN I GIVE?
Donors can give gifts of:
All of these gift choices are available for investing in
your community through an estate-planned gift.
What Choices Do I Have About Giving?
Gifts to the Foundation can be given as outright gifts,
or they can be given as estate-planned gifts. Outright
gifts are given for the immediate benefit of the
community. Estate-planned gifts help ensure a
vibrant future for the community and they create a
legacy of philanthropy for individuals and families.
Bequests
Bequests are gifts made as a part of a will. Bequests
can be a specified dollar amount or a percentage of
the donor's estate. Some donors see this as a good
way to establish a legacy for the community while
minimizing federal estate taxes. The donor can direct
a bequest to an area of specific interest or to a
specific organization.
Life Insurance
The use of life insurance for tax-advantaged
charitable giving is becoming increasingly popular.
With relatively small, yearly, tax-deductible
contributions, you can leverage a substantial legacy
that will pass to the Foundation upon your death.
The procedure is simple; you take out an insurance
policy on your life, vesting all ownership rights in the
policy with the Foundation and irrevocably naming
the Foundation as beneficiary of the proceeds. Each
year you pay the annual premium, which is fully
deductible as a charitable contribution. On your
death, the proceeds of the policy pass to the
Foundation free of estate taxes.
Pooled Income Fund
This simple life income arrangement has many of the
same compelling benefits as more complex vehicles.
When you make a gift to a pooled income fund,
income from your gift will be paid to you and/or to
any designated beneficiaries for life. When the last
life income beneficiary dies, the funds pass to the Tri-
Valley Community Foundation. The funds may pass
to the unrestricted endowment, or they may pass to
an existing field of interest or restricted fund,
depending upon the terms of your original gift. If
your gift to the pooled income fund is in the form of
appreciated securities, you avoid the payment of a
capital gains tax on the appreciation. At the same
time, the income you earn on the donated assets may
be substantially enhanced. In addition, you are
entitled to a charitable contribution deduction for
the value of the Foundation's deferred interest.
Life Income Gifts
Life income gifts involve an irrevocable transfer of
assets to the Foundation. In return, a specified
beneficiary -- the donor, a spouse, children or a
friend -- receives a lifetime payment. Upon the death
of the beneficiary, the assets are used by the
Foundation for the charitable purpose defined by the
donor. The donor receives a current income tax
charitable deduction for the remainder value of the
charitable gift.
Charitable Remainder Trusts
The charitable remainder trust is such a beneficial
life income plan that many financial advisors
recommend it to clients with no previous interest in
charity. In the trust, you reserve a life interest for
yourself - which pays dividends annually - and may
create a succeeding life interest for a survivor
beneficiary, often a spouse. Alternatively, you may
set up the trust to provide a life interest for a parent,
a sibling, other relative or friend. Or, in lieu of a life
interest, the trust can provide that the named
beneficiary will benefit for a certain number of years.
On the death of the named beneficiaries, or the end
of the prescribed terms of years, the charitable
remainder trust terminates and the principal, which
has often appreciated in value by that time, passes
into a perpetual charitable fund in the Tri-Valley
Community Foundation bearing your name if you
wish. It is also possible for other charities to share in
this final disposition.
There are two basic types of charitable remainder
trusts. A unitrust entitles the donor or other life
beneficiary to receive an annual payout of a
percentage of the value of the trust (which cannot be
less than five percent), as that value fluctuates from
year to year. An annuity trust fixes an annual payout
amount when the trust is set up (which must be at
least five percent of the initial corpus of the trust),
and payments remain constant each year regardless
of fluctuations in the value of the fund assets.
In addition to being a valuable method of lifetime
giving, a charitable remainder trust can be
established by a living trust or will to provide a life
interest for a spouse, relative or friend after your
death. The ultimate remainder will pass to the Tri-
Valley Community Foundation.
Charitable Lead Trusts
Charitable lead trusts provide income to the
Foundation for a specified period of time. When that
time is expired, the assets are distributed to the
donor or others designated by the donor. These types
of gifts can result in significant tax savings.
Private Foundation Gifts
Private foundations sometimes choose to give a direct
gift or to transfer all or part of their assets to the Tri-
Valley Community Foundation. The identity and
purpose of the original donor are preserved, and the
donor or others designated by the donor can
participate as fund advisors. Because the Foundation
is a public charity, there are no taxes to pay, and the
Foundation is responsible for all accounting and
reporting requirements. Also, donors have the
assurance that a permanent nonprofit organization
is in place to administer the fund in the future.
Retained Life Estate
Donors may contribute a private residence or farm
while retaining the right to live in and use the
property. Among several advantages of this type of
gift are generous income tax deductions.
foundation. An array of choices are available to
donors for making a gift to a community foundation,
including deferred gifts made via a will or a trust as
part of your estate planning process.
WHAT CAN I GIVE?
Donors can give gifts of:
- Cash
- Securities
- Retirement Plan Assets
- Closely Held Stock
- Real Estate
- Life Insurance
- Personal property
All of these gift choices are available for investing in
your community through an estate-planned gift.
What Choices Do I Have About Giving?
Gifts to the Foundation can be given as outright gifts,
or they can be given as estate-planned gifts. Outright
gifts are given for the immediate benefit of the
community. Estate-planned gifts help ensure a
vibrant future for the community and they create a
legacy of philanthropy for individuals and families.
Bequests
Bequests are gifts made as a part of a will. Bequests
can be a specified dollar amount or a percentage of
the donor's estate. Some donors see this as a good
way to establish a legacy for the community while
minimizing federal estate taxes. The donor can direct
a bequest to an area of specific interest or to a
specific organization.
Life Insurance
The use of life insurance for tax-advantaged
charitable giving is becoming increasingly popular.
With relatively small, yearly, tax-deductible
contributions, you can leverage a substantial legacy
that will pass to the Foundation upon your death.
The procedure is simple; you take out an insurance
policy on your life, vesting all ownership rights in the
policy with the Foundation and irrevocably naming
the Foundation as beneficiary of the proceeds. Each
year you pay the annual premium, which is fully
deductible as a charitable contribution. On your
death, the proceeds of the policy pass to the
Foundation free of estate taxes.
Pooled Income Fund
This simple life income arrangement has many of the
same compelling benefits as more complex vehicles.
When you make a gift to a pooled income fund,
income from your gift will be paid to you and/or to
any designated beneficiaries for life. When the last
life income beneficiary dies, the funds pass to the Tri-
Valley Community Foundation. The funds may pass
to the unrestricted endowment, or they may pass to
an existing field of interest or restricted fund,
depending upon the terms of your original gift. If
your gift to the pooled income fund is in the form of
appreciated securities, you avoid the payment of a
capital gains tax on the appreciation. At the same
time, the income you earn on the donated assets may
be substantially enhanced. In addition, you are
entitled to a charitable contribution deduction for
the value of the Foundation's deferred interest.
Life Income Gifts
Life income gifts involve an irrevocable transfer of
assets to the Foundation. In return, a specified
beneficiary -- the donor, a spouse, children or a
friend -- receives a lifetime payment. Upon the death
of the beneficiary, the assets are used by the
Foundation for the charitable purpose defined by the
donor. The donor receives a current income tax
charitable deduction for the remainder value of the
charitable gift.
Charitable Remainder Trusts
The charitable remainder trust is such a beneficial
life income plan that many financial advisors
recommend it to clients with no previous interest in
charity. In the trust, you reserve a life interest for
yourself - which pays dividends annually - and may
create a succeeding life interest for a survivor
beneficiary, often a spouse. Alternatively, you may
set up the trust to provide a life interest for a parent,
a sibling, other relative or friend. Or, in lieu of a life
interest, the trust can provide that the named
beneficiary will benefit for a certain number of years.
On the death of the named beneficiaries, or the end
of the prescribed terms of years, the charitable
remainder trust terminates and the principal, which
has often appreciated in value by that time, passes
into a perpetual charitable fund in the Tri-Valley
Community Foundation bearing your name if you
wish. It is also possible for other charities to share in
this final disposition.
There are two basic types of charitable remainder
trusts. A unitrust entitles the donor or other life
beneficiary to receive an annual payout of a
percentage of the value of the trust (which cannot be
less than five percent), as that value fluctuates from
year to year. An annuity trust fixes an annual payout
amount when the trust is set up (which must be at
least five percent of the initial corpus of the trust),
and payments remain constant each year regardless
of fluctuations in the value of the fund assets.
In addition to being a valuable method of lifetime
giving, a charitable remainder trust can be
established by a living trust or will to provide a life
interest for a spouse, relative or friend after your
death. The ultimate remainder will pass to the Tri-
Valley Community Foundation.
Charitable Lead Trusts
Charitable lead trusts provide income to the
Foundation for a specified period of time. When that
time is expired, the assets are distributed to the
donor or others designated by the donor. These types
of gifts can result in significant tax savings.
Private Foundation Gifts
Private foundations sometimes choose to give a direct
gift or to transfer all or part of their assets to the Tri-
Valley Community Foundation. The identity and
purpose of the original donor are preserved, and the
donor or others designated by the donor can
participate as fund advisors. Because the Foundation
is a public charity, there are no taxes to pay, and the
Foundation is responsible for all accounting and
reporting requirements. Also, donors have the
assurance that a permanent nonprofit organization
is in place to administer the fund in the future.
Retained Life Estate
Donors may contribute a private residence or farm
while retaining the right to live in and use the
property. Among several advantages of this type of
gift are generous income tax deductions.
| Thanks to our Web Page Sponsor |
We would like to thank The Castleman Law Firm in Pleasanton for sponsoring this page. Visit them online at www.castlelaw.com |
Create a legacy for good!
Contact us today about our
complimentary estate-planned
giving consultation services.
Contact us today about our
complimentary estate-planned
giving consultation services.