Including a gift to Barberton Community Foundation in your estate plan is an easy way for you to make a significant impact on Barberton’s needs and create a legacy that lasts forever. The inclusion of a bequest to Barberton Community Foundation in wills or living trusts is referred to as a planned gift. Planned gifts can relieve the tax burden on a donor’s estate while also benefiting a charitable organization or program.
Planning today can help those in the future have the quality of life we would all treasure. The types of planned charitable gifts include (among others):
A bequest can be made by naming the Foundation as a charitable beneficiary in a new will, or adding a codicil to an existing will. The bequest can be in the form of a stated dollar amount or specific property, a percentage of the estate, or a portion of or the entire residue.
Donors may give a life insurance policy no longer needed, take out a new policy or name Barberton Community Foundation as a beneficiary of an existing policy. A gift of life insurance may provide valuable income and estate tax savings.
Charitable Remainder Trust
A Charitable Remainder Trust (CRT) allows a donor to establish a trust for the ultimate benefit of his or her fund at the Foundation, retain a lifetime income generated by the contributed assets, receive a current income tax deduction and defer the capital gain recognized on the sale of the contributed asset. A CRT may help you eliminate capital gains taxes, reduce or eliminate gift and estate taxes, improve lifetime cash flow and when coupled with an asset replacement trust, provide for heirs as well.
Retirement plan accounts and IRAs may be subjected to layers of taxation – both estate and income tax. A charitable gift of these funds at death, however, can provide a donor’s fund with the full 100 cents on the dollar.
Charitable Lead Trust
This allows donors to provide income to their fund at the Foundation for a specified number of years. The remainder is then returned to the donor or his or her named beneficiary. Benefits may include the transfer of assets to others free of estate, gift and income taxes.
If a donor owns property that is valuable and is interested in using it during his or her lifetime but makes arrangements to give it to the Foundation upon death, he or she may receive a current income tax deduction and future estate tax deduction.
Please contact the Foundation or your professional advisor with any questions:
Suzanne T. Allen, Ph.D.
Read through our Planned Giving Frequently Asked Questions.