Planned Giving provides several tangible benefits to donors, depending on the specific plan:
•Income tax deductions
•Reduced or eliminated capital gains taxes
•Lifetime incomes for yourself and your spouse
•Reduced or eliminated estate taxes
•Preserved financial assets
•Reduced or eliminated gift taxes
These are some of the easiest ways to provide for your family, remember the Society and realize tax advantages. Planned gifts require the services of a professional to complete. You will need an attorney, accountant, bank trust officer, financial planner, insurance professional, or, at times, all of these. We strongly advise you to discuss any and all financial plans with a professional advisor.
If you would like more information on Planned Giving and including the Society in your estate plans, please contact St. Vincent de Paul today.
Cash, appreciated securities or closely held stock may be donated outright or pledged over a period of up to five (5) years. If donors itemize their tax deductions, the gift is fully deductible up to 50% of their adjusted gross income. Any excess may be carried forward for up to five (5) additional years.
Life Income Gifts
A donor transfers cash or appreciated assets to the Society which, in turn, pays a reliable, steady stream of lifetime fixed income back to the donor. Because of built-in tax savings, the donor usually receives a higher rate of return than from other life income investments. Included are gift annuities and pooled income funds, which can earn the donor income, capital gains and estate tax savings.
These trusts provide a donor with a lifetime income and a charitable income tax deduction. The first type is an annuity trust, which pays the donor a fixed, guaranteed dollar amount every year regardless of the trust’s investment performance (like bonds). The second type is the unitrust, which pays the donor a predetermined percentage of the fair market value of the trust’s assets as revalued annually (like stocks).
Real Estate Gifts
Owners of residential or commercial real estate can donate their property to the Society in two (2) ways. An outright property gift qualifies the donor for a charitable income tax deduction based on the appraised value of the property. With a retained life estate contract, the donor makes a gift of a personal residence to the Society but retains the right to live in the home for life. The life estate gift creates an up-front charitable income tax deduction based on the “present value” of the home going to the Society upon the donor’s death.
The income in a lead trust is paid first to the Society and, after a period of years, the remainder is returned to the grantor (grantor lead trust) or to the grantor’s heirs (non-grantor lead trust). The grantor lead trust offers a substantial income tax deduction to the donor while the non-grantor lead trust enables the heirs to avoid potential gift and estate taxes.
Life Insurance Gifts
An existing life insurance policy may be donated or a new policy could be established that names the Society as the owner and beneficiary. Various income tax benefits are available to donors who make life insurance gifts to the Society.
Gifts Through Your Estate
This is a versatile way to donate a variety of assets including cash, securities, real estate and tangible personal property. Donations can be made through a Will or Trust, which distributes your gift in any desired amount or proportion. Several types of bequests are included, which allow donors to make a major gift while preserving assets during their lifetime and reducing federal estate taxes.
The Society of St. Vincent de Paul, St Francis Conference Inc advises donors to contact a professional for assistance when considering a donation to the Society through Planned Giving.
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