| |
These Web pages have been prepared by the Fond Land Preservation Foundation for informational purposes only. Nothing herein is intended as legal or financial advice. Please consult your own attorney or financial advisor regarding the advisability of donating to the Fond Land Preservation Foundation.
Whether supported through an outright gift or planned gift, all Fond Land Preservation Foundation programs are made possible through the generosity and commitment of people like you. An endowment to the Fond Land Preservation Foundation helps to ensure the future of the services and programs we provide in your community and may further your financial goals.
Planned gifts include gifts through your will, charitable gift annuities, gifts of life insurance, pooled income funds, and charitable trusts.
Many of our supporters make charitable gifts by naming the Fond Land Preservation Foundation as a beneficiary in their wills. The federal government encourages these gifts or bequests, by allowing an unlimited estate tax charitable deduction.
You designate a specific dollar amount, specific percentage, or specific property to the Fond Land Preservation Foundation.
Your estate will pay all debts, taxes, expenses, and specific bequests. The remaining amount--the residue--will be transferred to the Fond Land Preservation Foundation.
You can ask that the Fond Land Preservation Foundation receive all or a portion of your estate only under certain circumstances. For example, you can name the Fond Land Preservation Foundation as a beneficiary of your estate only if there are no surviving close family members. Childless couples sometimes provide for the entire estate to go to the surviving spouse, or if the spouse does not survive, to the Fond Land Preservation Foundation.
Current family obligations and the need to provide for retirement, make it difficult for many people to consider substantial charitable gifts now. But there is a way to have the satisfaction of making a meaningful lifetime gift without sacrificing your future. Furthermore, you can get achieve income tax and financial benefits by making a life income gift. You irrevocably transfer some assets to the Fond Land Preservation Foundation now, and in return, you (and a survivor, if you wish) receive income for life. As a result, the assets are used to carry out the Foundation’s mission. By making a life income gift to the Fond Land Preservation Foundation, you will receive the following benefits, as well as knowing your gift will continue to benefit the community. Charitable Remainder Trust and Charitable Gift Annuities are examples of life income gifts. Please consult with your tax advisor, but benefits may include:
- A charitable deduction in the year you make the gift for the present value of our right to eventually receive the assets.
- Your effective yield is increased by substantial income tax savings.
- Income can be taxed more favorably in some plans.
- Your probate and estate administration costs may be reduced.
Some of our supporters no longer need their life insurance that was purchased years ago to provide for family members. If that is your situation, please consider donating the policy to the Fond Land Preservation Foundation. You may claim a charitable deduction for approximately the policy's cash surrender value, and the proceeds are completely removed from your estate.
Your gift of money, marketable securities, or both to the Fond Land Preservation Foundation's pooled income fund is invested together with similar gifts from other supporters. Each year, you receive your share, which is taxable as ordinary income, of the fund's earning.
For example, Mr. Smith’s $1,000 life income gift is invested in our pooled income fund. The fund's net income is annually 6 percent in this example, so he receives $60--his share of the annual earnings. Each year, Mr. Smith's payment will reflect any increase or decrease in the fund's net income..
Individuals with very large estates can use a charitable lead trust to benefit the Fond Land Preservation Foundation and pass principal to family members with little or no tax penalty. Although you should consult with your accountant for complete details, it works as follows: You transfer assets to a trust that provides payments to the Fond Land Preservation Foundation for a term of years. Then the trust principal goes to your children, grandchildren, or others free of, or at greatly reduced, federal gift and estate tax. (Please note that a generation skipping tax is imposed on large transfers to grandchildren and others who are more than one generation younger than you.)
Many individuals today have large qualified retirement plans such as an IRA, 401(k), or Keogh plan. These assets have been growing tax-free for years. Once the owner begins to receive payments from the qualified plans, the distributions are taxed. The plans are also included in the owner's taxable estate. A retirement plan may be an excellent source of funds for making a gift to the Fond Land Preservation Foundation. One way to make a donation of your retirement plan is to create a charitable remainder trust through your will. Although you should consult with your accountant for complete details, it works as follows: Your IRA, 401(k), or Keogh assets will be transferred to a charitable remainder trust. There is no tax due because the charitable remainder trust is a tax-exempt entity. The trust will provide life income to the beneficiary (for example, your child) with an eventual gift to the Fond Land Preservation Foundation. The beneficiary will pay income tax on the distributions from the trust. Your estate will receive an estate tax charitable deduction for the value of the Fond Land Preservation Foundation's right to eventually receive the trust assets.
Please click here to contact our Personal Planning Department to assist you.
|
|
