Leave a Legacy to Future Generations

Do you want to give something back to the community? Do you want to support something you believe while
reducing taxes and receiving income at the same time? Here is an example:

You own real estate worth $1 million with an adjusted cost basis of $200,000. You could generate a $400,000 contribution deduction if you transfer the property to a charitable remainder trust. This could provide an income tax savings of approximately $140,000. You can avoid approximately a $220,000 capital gain on the sale of the property. The trustee may pay your beneficiaries an annual income of $60,000.

You can make an annual gift, with your spouse to your son and daughter-in-law totaling $44,000 under the annual gift tax exclusion. This amount can be used to purchase life insurance on your life of $1 million, sufficient to replace the $1 million worth of real estate transferred to the charitable remainder trust. Your son will receive the same $1 million from proceeds of the life insurance policy. The $1 million real estate that your son would have received might have been reduced by a 55 percent marginal estate tax. Your son may actually receive more than double by implementing the charitable/insurance plan.

What We Do To Help With Your Charitable Giving

• Donor Advised Fund (DAF): DAF provides aggregated investment management for charitable
  contributions from multiple donors. You receive an immediate income tax deduction for the amount
  contributed to the fund subject to the deductibility limits. The funds are accounted for separately and you
  may advise the charity to identify separate accounts by family name.
  
  
• Private Foundation (PF): PF is tailored to meet your individual and family desires. You must distribute a
  minimum of 5 percent of the fair market value annually. There is an annual excise tax of 2 percent on net
  investment income. It allows family involvement after your passing.
  
  
• Charitable Remainder Annuity Trust (CRAT): CRAT provides fixed annuity to beneficiaries based on
the fixed percentage of the trust’s initial fair market value. Additional contributions are disallowed after
the trust is funded. Principal must be invaded where the trust income is insufficient to meet the
required annual return.


• Charitable Remainder Unitrust (CRUT): CRUT provides variable annuity to the beneficiaries. The
  minimum rate of return to the income beneficiaries must be 5 percent. This rate is calculated on the fair
  market value of the property determined on an annual basis. Additional contributions may be made in
  later years under certain conditions. The NIM CRUT has a provision for payments foregone in the
  previous years.
  
  
• Charitable Lead Trust (CLT): You transfer assets to an irrevocable trust with a provision that the trust
  principal reverts to the beneficiaries after a certain period of time. The charity receives income from the
  trust. You receive an immediate income tax deduction for the present value of the income interest given
  to the charity.
  
  
• Pooled Income Fund: You transfer assets to a charity irrevocably; the assets are “pooled" with the
  assets of other donors. You receive a pro-rated share of the fund’s net income for life. The charity
  receives the remainder upon the donor’s passing. The income tax deduction is equal to the present
  value of the charity’s remainder interest.
  
  
• Grantor Retained Annuity Trust (GRAT): You receive income from the trust for a period of time and the
  property passes to a donee. The gift value is adjusted down per the IRS rules to allow for your retained
  income interest.
  
  
• Retained Life Estate: You transfer real property to a charity and retains the right to live on the property
  together with all the responsibilities for the property. You receive an immediate income tax deduction for
  the remainder interest in the property and also do not have to pay capital gains tax on any
  appreciation of the property.