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Contact: Devie Gibson, Planned Giving and Alumni Events, 434-432-2692.
Other
Planned Gifts
In
addition normal giving, Hargrave offers a wide varity
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.
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