We all know that giving can be a very satisfying and rewarding experience. And most of us want to leave a legacy to show that our lives have made a difference in society. Someone once noted that most of us will work more than 40 years to accumulate assets, will spend ten years conserving what has been accumulated, but will not take two hours to plan carefully for their distribution.
"It is not the plan that counts, it is the planning."
- Anonymous
Let's explore the power of Planned Giving!
Life Income Gifts - Charitable Trusts
Charitable Remainder Trust
Similar to a Charitable Gift Annuity, a Charitable Remainder Trust will also provide income to you and/or a loved-one for life or for a fixed term of years. You will be eligible for an immediate tax deduction for a portion of the charitable gift. When the trust or annuity term ends, the remaining assets will support the program of care at Boys and Girls Homes.
A Charitable Remainder Trust can take the form of a "unitrust" or an "annuity." A Charitable Remainder Unitrust (CRUT) will payed a fixed percentage, but will annually recalculate the payment amount based on the fair market value of the trust assets. A Charitable Remainder Annuity Trust will pay a fixed amount for the life of the trust based on the value of the trust assets when created.
Charitable Lead Trust
A Charitable Lead Trust can make an agreed upon payment to Boys and Girls Homes for a designated period of time (typically 5, 10, 15, 20 or more years). At the end of this specified term, the trust assets are returned to the person who created the trust, or is passed on to children, grandchildren or other loved-ones. Through the use of this plan, it can be possible to transfer assets to heirs while paying little or no gift or estate tax.
