Legacy Gifts or Planned Giving is a way to make a gift to your charity of choice through thoughtful estate planning. A planned gift as part of an overall estate plan takes your needs as well as the needs of your loved ones into consideration, while helping support a cause or a charity that is personally meaningful to you. With a planned gift to Big Brothers Big Sisters of Northeastern Wisconsin, you can combine your desire to leave a lasting, charitable legacy with your overall financial, tax, and estate planning goals.
While it is best to speak with your personal financial advisor for information specific to your situation, following are a few types of planned gifts to consider:
When you remember Big Brothers Big Sisters in your will, you may reduce your estate taxes while helping local children change their lives for the better, forever. You may give a specific dollar amount, property or a percentage of your estate. You also may give the remainder of your estate after remembering family and friends.
Charitable Gift Annuity
A charitable gift annuity guarantees you income for life and provides immediate income tax benefits. The annuity payment depends on your age: the older you are, the higher the payment. If you choose, you can receive an income tax deduction now and defer receiving the annuity payments until a future date.
Charitable Remainder Trust
A charitable remainder trust provides payments to you or another beneficiary for life or a specified number of years. At the end of the trust term, the remainder is distributed to Big Brothers Big Sisters. You may set up a charitable remainder trust during your lifetime or through your estate plan.
Charitable Lead Trust
With a charitable lead trust, you donate income from the trust to the agency and retain the principal. Through the trust, you determine how much will be paid to the agency and for how long. When the trust terminates, the principal is returned to you or distributed to others you designate. The trust assets pass to the recipients at a reduced tax cost – sometimes even tax-free.
Individual Retirement Accounts (IRAs) or other qualified retirement plans are taxed heavily when left to heirs so they could be the best types of assets to leave to Big Brothers Big Sisters. When you leave retirement plan assets to the agency, 100 percent of the gift will go to providing local children with professionally supported one-to-one relationships.
If you are finding that you don’t need all the insurance you once did, naming Big Brothers Big Sisters as a beneficiary on your life insurance is an inexpensive way to make a substantial contribution. You can also donate the policy outright and receive a current income tax deduction.
How It Works
If you have money set aside for your family upon your death, and it’s sitting in a deposit account of some sort, you may be able to do more with that money.
Upon passing an underwriting review, you can purchase a Life Insurance policy. By purchasing a life insurance policy, your money can do more for you, your family and your charity. And, premiums used to fund an irrevocable charitable life Insurance policy may be tax deductible.
The chart shows and example of how a single sum of $100,000 could be worth $200,000 in cumulative benefits for your family and charity.
If you’re considering making Big Brothers Big Sisters part of your will, trust, bequest, or endowment, please contact Joyce Anderson at email@example.com or (920) 489-3535.