Other Planned Gifts

Contact:Contact: Brian Kramer, Director of Development, 434-432-3185.

Other Planned Gifts

In addition normal giving, Hargrave offers a wide variety of other options through the use of planned gifts.

Retirement Accounts

The balance remaining in your retirement account after your death is subject to double taxation if it passes to your heirs: it’s taxed both as income and as an estate asset. Result? Over 75% of the account value may go to taxes. It’s a better plan to designate the remainder of your account to Hargrave, and then use other assets for gifts to your family. New regulations simplify the procedure to name a charity as beneficiary and we would be happy to assist you with this process.

Life Insurance

You can donate either a paid policy, or designate Hargrave as owner and beneficiary of a new or existing policy. A no cost alternative is to make Hargrave the beneficiary of the term policy that many employers provide.

Income Gift Choices

A charitable gift annuity is the simplest; In return for your gift, we contract to pay you and/or another beneficiary fixed income for life. The income rates and the charitable deduction tend to be higher with a gift annuity than with other life-income gifts. There is also an attractive reduction in the taxation of annuity payments. This gift plan is most appropriate if you are risk-adverse in your long-term fixed income.

Deferred Gift Annuity

A deferred gift annuity delays the inauguration of income payments to the beneficiaries. In return for this delay, the deferred annuity increases both the income rate and the charitable deduction above those of an annuity starting income payments immediately. If you are currently in high-earnings years, looking for tax deductions and new sources of retirement income, a deferred annuity with income set to start when you turn 65 may fit your needs well.

Gift Annuities

Gift annuities are contracts between Hargrave and you, with payments made as an obligation of our organization. One other gift returning fixed income, the charitable remainder annuity trust, is an individually managed trust instead of a contract. The annuity trust offers you more flexibility, although its management costs often produce lower income rates than a gift annuity could pay and requires a larger initial gift.

The annuity trust does have several advantages. It can pay income to multiple beneficiaries, while the gift annuity is limited to two individuals. It can pay income for a term of years (up to 20) while a gift annuity can only pay for life. Under certain circumstances an annuity trust can pay all tax-free income, especially if it was funded with tax-free securities.

Charitable Remainder Trust

Charitable remainder unitrust (CRT) is the most flexible life-income gift that also pays you a variable income. The CRT pays beneficiaries a fixed percentage of the value of the principal, which is revalued annually. Income in excess of the unitrust amount is reinvested, so that the unitrust’s income rate can be applied against an increasing corpus over time. The unitrust can pay multiple beneficiaries, and can pay income for a lifetime or a term of years. Like the annuity trust, the unitrust is individually managed, and requires a larger gift to make the management feasible.

Unitrust special feature

A special feature of the unitrust is its ability to grow its principal over time, then reinvest for income, with no capital gains cost. This feature allows you to build up a fund for later needs, such as retirement.

Charitable Gift Annuity

Is a contract in which a donor exchanges a gift of cash or marketable securities such as stocks or bonds to Hargrave in exchange, you or a designate will receive fixed income payments for life.

Charitable Remainder Trust

Allows you to design an arrangement specifically suited to your needs, as well as provide income to your or other beneficiaries for life or a set term of years. The remainder then supports your favorite program at Hargrave.

Charitable Lead Trust

Is the opposite of a remainder trust, as it provides Hargrave with income for a set term of years, then the remainder is transferred to you or your heirs.

Gifts of Real Estate

You can deed your home, farm or other real estate to Hargrave and retain use of it during your lifetime. You will receive a charitable tax deduction while enjoying its use. You may also receive capital gains tax savings.