With a planned gift to Community 2000, you can start the future of a local high school student with a college scholarship. And you can realize tax savings and life income from your worthy gift. There are many ways to do this. Some are quite simple. It could be a gift in your estate – a bequest. Or the gift of an appreciated stock. You would help a student and forego the capital gains tax on the stock. A life income gift is another possibility. Please consult with your Attorney and Financial Advisor.
Make a difference in a child’s education. A gift in your estate – a bequest – will provide a local student with a college scholarship. If you can, a gift of $20,000 will endow a $1,000 scholarship forever.
. . . . . . And your estate taxes will be correspondingly reduced.
- Your Will is the instrument.
- The gift can be outright, residuary or contingent.
- Unlimited Federal estate tax deductibility.
- Any asset can be used: cash, stocks, real estate, life insurance and others.
You can designate the bequest as an endowment. Community 2000 invests the gift as part of its endowment fund and credits the interest to the annual fund each year in your name. An endowment of $20,000 will support a $1,000 scholarship forever.
Life income trusts are possible with a Will. The trust could provide income to an individual of your choice for life and the remainder to Community 2000. Or the trust could provide income to Community 2000 for a period of time, and then the trust assets go to your family.
Life Income Gifts - Charitable Remainder Annuity Trusts
You could help several local high school students with college scholarships. Establishing a Charitable Remainder Annuity Trust will help those students to the next step AND give you an annual fixed income of amount and duration you specify.
- Your annual fixed income can be for up to 20 years. The amount must be at least 5% of the initial value of the trust.
- The annual fixed income may be taxed favorably to you, depending how the Trust assets are invested.
- You get an immediate income tax deduction. The deduction is equal to the value of Community 2000’s remainder interest. The remainder interest must be 10% of the initial value of the Trust.
- You may save estate taxes because of the Trust.
- You may use appreciated assets – such as stocks – to fund the Trust and will usually avoid capital gains tax. You may use under-performing assets which can unlock an income stream for you.
Gift of Real Estate
You could help fund college scholarships for local students. A gift of residential real estate would do this and you retain the right of use of the property for your life. . . . . . And you get an income tax deduction now while avoiding capital gains taxes on the property.
- You will be able to use and enjoy the property for your lifetime, after which the property goes to Community 2000.
- You are responsible for paying property taxes, insurance premiums and maintaining the property as you did before the gift was made.
- You get an immediate Federal income tax deduction for the discounted value of the property.
- You will avoid the capital gains tax on the appreciation of the property.
- You will save on estate taxes later on.
- Your gift is irrevocable.
If, after making the gift, you want to move out and not use the property any longer, there are ways to achieve additional benefits. You could give your lifetime interest to Community 2000 and receive an additional income tax deduction. You could lease the property and receive rental income for your lifetime, after which the property goes to Community 2000.
To learn more or contact us at firstname.lastname@example.org, PO Box 1161, Charlestown, RI 02813 or 401-322-1182, we would like to tell you more about it.