Six Charitable Gifts to Achieve Your Goals

Charitable giving allows you to invest in organizations, like Sisters of Notre Dame de Namur, that extend your values in perpetuity.

These gifts can provide favorable income tax, capital gains tax as well as estate tax benefits. By making certain types of gifts, you can even watch the impact it has on the recipient during your living years. Here are brief descriptions of six charitable gifts commonly used in estate planning:

1. Bequest - Providing a bequest of cash, personal property, or real estate to in your will or living trust is the most common type of estate gift. Such gifts are not subject to Federal estate tax.
2. Charitable Remainder Trusts – Establishing an irrevocable trust that provides an annual income to your beneficiaries allows you to designate the principal to revert to the Sisters of Notre Dame de Namur at their death(s).
3. Life Income Gifts – These plans do not require the establishment of a separate trust and are especially suited for smaller gifts.
4. Gifts of Life Insurance or Retirement Plans – The Sisters of Notre Dame de Namur may be designated as the beneficiary of a life insurance policy, 401(k), 403(b), profit sharing plan or IRA.
5. Gift of Property – You may make a gift of your personal residence to the Sisters and retain the right to live in the home for the remainder of your life.
6. Charitable Lead Trust – You may choose to set up a trust that pays income annually to the Sisters of Notre Dame de Namur for a fixed period of years. After that time, the principal of the trust reverts to you or to another person, such as your children or grandchildren.

As always, your attorney and other tax advisors should assist you in determining which avenues of giving best achieve your goals and objectives.

Disclaimer: The purpose of this article is solely educational, namely to provide general gift, estate, financial planning, and related information. It is not intended as legal, accounting or other professional advice, and you should not rely on it as such. For assistance in planning charitable gifts with tax and other implications, the services of appropriate and qualified advisors should be obtained. Consult an attorney for advice if your plans require revision of a will or other legal document. Consult a tax and/or accounting specialist for advice regarding tax- and accounting-related matters.