Deferred Gifts

It comes as a shock to many that the federal estate tax can easily take as much as 55% of one's estate at the time of death. It is a prudent person who does advanced planning with financial advisors and an attorney.

Charitable Gift Annuity
A gift annuity is a combination of a gift and an investment whereby in exchange for a transfer of cash or marketable securities, you and/or another person would receive a fixed annuity payment for life. You can claim a current charitable income tax deduction, and a portion of each annuity payment is received tax-free over your life expectancy. Funding a gift annuity with appreciated securities has additional tax benefits.

Deferred-Payment Gift Annuity
If you can benefit now from a current tax deduction and are interested in supplementing retirement income on a tax-favored basis, the deferred-payment gift annuity may be a perfect way for you to make a gift.

Bequests
Consider a charitable bequest to the DNSF through your will. This will benefit the DNSF while saving you estate tax dollars at the same time. The DNSF can be named as beneficiary in a will in several simple ways, such as through a gift of property or through a direct gift of funds. It is also possible to name the DNSF as a remainder beneficiary to receive funds only after specific sums have been paid to individual beneficiaries.

Testamentary Trust
It is important to note that trusts can be set up to take effect only after your death, and can be arranged in your will.

Charitable Remainder Trust
A trust is an arrangement in which you irrevocably transfer money and other assets to a trustee. A charitable remainder trust will provide you (or a loved one) with an income, and after the death of the income beneficiary, will provide a gift to charity.

Revocable Living Trust
More people now use trusts created during their lifetime to provide for the management and final distribution of their assets. You can make a gift by naming the DNSF as one of the beneficiaries of your trust at death, or you can give the income generated by the trust during your lifetime.

Life Estate Agreement
If you own a home, farm, vacation home, or investment property, you may be able to make a gift of the property, receive a tax deduction, and continue to live in your home or work on your farm for the rest of your life.

Gift through Retirement Plans
It is our desire to help you determine which of these methods may be best for you and your family. We welcome the opportunity to provide you with additional information about any of these methods and to discuss with you how you might consider making your gift. For assistance, please call 1.800.340.2671.

The information provided here is not legal tax advice. Please consult with your professional advisors about estate planning strategies applicable for your specific situation.