Through planned giving, YOU can help sustain the work of the Community Caring Center, creating a Healthier Community by providing nutrition education and access to healthy, nutritious food to those in need from cradle to grave.
PLANNED GIVING AND ESTATE PLANNING
We are told that a staggering 70% of Americans do not have a current will. The ramifications of this on children, surviving spouses, on taxes and fees is immeasurable. There are many reasons for this. Fear of dying, procrastination, confusion about the estate planning process, the cost of creating a will...and more.
Here is some basic information as you consider your estate planning and how planned giving to sustain the work of the Community Caring Center may be of help to you and your family.
Three types of Planned Gifts
1. Outright gifts that use appreciated assets as a substitute for cash;
2. Gifts that return income or other financial benefits to the donor in return for the contribution; and
3. Gift payable upon the donor's death.
TAX Advantages of Planned Giving:
Donors can contribute appreciated property, receive a charitable deduction for the full market value of the asset and pay no capital gains on the transfer.
Donors who establish a life-income gift receive a tax deduction for the full, fair market value of the assets contributed, minus the present value, of the income interest retained; if they fund their gift with appreciated property they pay no upfront capital gains tax on the transfer
Gifts payable to charity upon the donor's death (eg. bequest, beneficiary designation in a life insurance policy or retirement account) do not generate a lifetime income tax deduction for the donor but they are exempt from real estate tax.
In addition to WILLS and their preparation, a program of Planned Giving may also consist of the following:
1. Gifts that give you income - good for the younger person who is still saving for retirement.
- Charitable Gift Annuity - make fixed payments when the gift is made
- Deferred Gift Annuity - make fixed payments at a later date
- Charitable Remainder Unitrust - individually managed trusts that pay the beneficiaries either a fixed trust income or a fixed dollar amount
- Charitable Remainder Annuity Trust - see above
2. Gifts that protect your assets - Real Estate gifts
- You can donate your home, continue to live in it, and get a tax deduction
- our can contribute a portion of the value of your residence or other property, tax a tax deduction, and receive cash or an income stream for life
- You can receive a sum of cash in return for your gift and apply the cash toward any financial need
- You can greatly reduce the estate tax for your gift and apply the cash toward any financial need
- You can greatly reduce the estate tax cost of passing appreciating assets on through your children
o Charitable Bargain Sale
o Retained Life Estate
o Charitable Lead Trust