When You Become a Planned Giving Donor You Create A Lasting Legacy of Love
What Can I Give?
Gifts of Appreciated Assets—The gift of appreciated property (particularly securities but also real estate and personal property) is a popular alternative to cash gifts because it actually saves taxes twice. You receive an income tax deduction for the full fair market value of the securities (if you’ve held them for more than one year) plus you also save the capital gain tax on the appreciation. Any unused deduction may currently be carried forward for up to five years.
Bequest—Probably the simplest way to make a planned gift is to include a statement in your will or living trust that gives a portion of your estate to P.A.W.S. Animal Adoption Center. Such a bequest can be for a purpose named in your will or can be unrestricted. Bequests can include most assets and are tax deductible as charitable gifts for estate tax purposes. A charitable bequest may be added to an existing will as a codicil.
IRA Assets—Gifting your IRA through your estate plan is an extremely tax-efficient means of making a charitable gift. This is because often heirs pay income and estate tax on these accounts. Charities, however, do not pay income taxes, and the assets pass to the charity free of any estate tax as well. This can translate into tax savings of up to 85% of the value of the account, depending on the size of the total estate and the heir’s tax bracket. To make P.A.W.S. Animal Adoption Center a designated beneficiary of an IRA or other retirement plan, contact your plan administrator for a “designation of beneficiary” form.
Life Insurance—The gift of a Life Insurance policy to P.A.W.S. Animal Adoption center can be both an affordable and generous charitable gift. You may:
- Make P.A.W.S. a beneficiary of a new or existing policy,
- Transfer a single-premium policy to P.A.W.S. at the time of issuance, or
- Transfer a paid-up policy to P.A.W.S.
Depending on how you choose to gift the Life Insurance policy you may be eligible for immediate or future tax deductions based on the value of the policy or the value of premium payments.
Charitable Gift Annuity—A simple agreement between you and P.A.W.S. Animal Adoption Center, a charitable gift annuity obligates P.A.W.S. to pay a fixed annual amount, for life, to one or two annuitants named by the donor. Our obligation to make these payments is backed by our assets. Advantages include income that is partially tax-free, income tax deduction and attractive income rates (particularly for annuitants who are 70 years of age or older).
Charitable Remainder Trust (CRT)—Makes payments to the income beneficiaries (often a donor and their spouse). Payments are either fixed or variable – Charitable Remainder Unitrusts provide for variable payments based on a yearly reevaluation of the trust assets while Charitable Annuity Trusts provide for a fixed payment based on the trust assets at the formation of the trust. Using a CRT allows you to bypass capital gain taxes and reduce estate taxes and the trust assets are allowed to grow tax-free. Upon the expiration of the trust term the charitable remainder goes to P.A.W.S. Animal Adoption Center.
Charitable Lead Annuity Trust (CLAT)—A charitable lead trust will appeal to those who want to leave an inheritance for children and/or grandchildren while minimizing the percentage taken by estate and other inheritance taxes. While a large variety of assets may be used in a CLAT, one of the most common is revenue-generating real estate such as an apartment building. In all cases income from the trust flows to P.A.W.S. Animal Adoption Center for a number of years specified in the Trust document. When the trust is terminated, the assets within the trust can either return to you or be given to another party (typically children or grandchildren). CLAT’s allow for immediate gifts to P.A.W.S while also transferring assets to future generations and minimizing tax costs. Like CRT’s, CLAT’s may be either annuity trusts or unitrusts (annuity trusts provide a fixed payment amount to the charity for the term while unitrusts involved a fixed percentage of the trust revalued annually).
None of the foregoing is intended as estate, tax or legal advice of any kind. Your unique situation requires the advice of independent, qualified legal, tax and/or financial advisor(s).