How to Establish a Fund with a Gift that Costs Nothing During Your Lifetime

Gift that Costs Nothing During a Lifetime

A charitable fund can carry out your vision to support causes or organizations important to you, even after you’re gone.
Did you know that you can set up the funds and then activate it later with a gift from your estate? Sometimes called a deferred or planned gift, these types of gifts allow you to use your assets as needed during your lifetime and then give them for the greater good later.
These gifts cost you nothing during your lifetime and are only given after your death, if available.  
There are several types of planned gifts:
Bequest by Will
Bequests are statements in your Last Will and Testament directing portions of your assets to loved ones and charitable organizations, such as the Community Foundation of Shelby County. The bequest can be for a specific dollar amount or a percentage of your estate that can be used to create a fund or add to an existing fund.  The Foundation can provide you and your attorney with  Suggested Bequest Language to include in your will.

Retirement Plan
Naming the Community Foundation as a beneficiary of your retirement plan such as an IRA, is an opportunity to avoid income and estate tax penalties while fulfilling your charitable goals. These assets are typically the most heavily taxed; therefore it may be more effective for you to transfer assets to a tax-exempt organization, such as the Community Foundation.

Life Insurance
Want to provide a significant gift to support your favorite causes, but don’t know how?  A life insurance gift could be that option.  The most tax-effective way to donate life insurance is to transfer the policy so that the charity, such as the Community Foundation, becomes the owner and beneficiary.  You are entitled to an immediate charitable deduction for income tax purposes.  If you continue to pay the premiums, each payment is also a deductible charitable donation.   See our Life Insurance Gift Acceptance Policy for additional information and conditions.

There are other types of planned gifts and choosing the right type of planned gift depends on your personal circumstances and financial goals. As with all big financial decisions it’s a good idea to meet with your professional advisors to determine what’s best for your situation.

See Give Later for more information.

2019-03-13T18:21:34+00:00