Bequest | Pooled Income Fund | Gifts with Retained Life Income | Charitable Gift Annuity | Charitable Remainder Unitrust
Charitable Remainder Annuity Trust | Charitable Lead Trust | Life Insurance
The CAMC Foundation’s planned giving options enable you to arrange charitable contributions in a manner that maximizes your objectives while minimizing the after-tax cost.
Planned gifts to the CAMC Foundation include bequests, charitable remainder trusts, charitable lead trusts, pooled income fund gifts, gift annuities, IRAs, retirement plans and gifts of life insurance.
Benefits of a Bequest
• Receive estate tax charitable deduction.
• Lessen the burden of taxes on your family.
• Leave a lasting legacy.
• Satisfaction of providing for the future of the CAMC Foundation.
How to Make a Bequest
A bequest is one of the easiest gifts to make. With the help of an advisor, you can include language in your will or trust specifying a gift to be made to family, friends or the CAMC Foundation as part of your estate plan.
A bequest may be made in several ways:
• Gift of a percentage of your estate
• Gift of a specific dollar amount or asset
• Gift from the balance or residue of your estate
2. Pooled Income Fund
A pooled income fund allows you to make gifts to the CAMC Foundation while retaining the right to receive income for life. Individual contributions are “pooled” for investment purposes; in return, the net income of the entire fund is distributed on the basis of the number and value of “Shares” held by each donor. All gifts are irrevocable and qualify for an income tax charitable contribution deduction, the amount of which is based on the age of the beneficiary (ies) and the recent performance of the fund.
A gift to the pooled income fund may be designated for a particular program or endowment or the gift may be unrestricted, for use where the needs and opportunities are greatest.
3. Gifts with Retained Life Income
You may wish to make a substantial capital gift to the CAMC Foundation but you may feel that you cannot afford to give up the annual income produced by the property. The CAMC Foundation’s planned giving program offers two ways to help you make such a gift while retaining an income for life:
Charitable Gift Annuities and Charitable Remainder Trusts:
The benefits vary, but all arrangements have the following features:
• Satisfaction of providing for the future of the CAMC Foundation.
• Income for life paid to you and/or another beneficiary.
• An income tax charitable contribution deduction for the portion of the transfer that represents the gift to the CAMC Foundation.
• Elimination of some or all capital gains tax if the gift is in the form of securities or real estate that has appreciated in value.
• Potential for increased income.
In the case of charitable remainder trusts and charitable lead trusts, you must select your own trustee. The setting of the investment policy shall be between the donor and trustee.
Charitable Gift Annuity
A charitable gift annuity is a contract between you and the CAMC Foundation. You transfer cash or securities to the CAMC Foundation in exchange for quarterly payments in the form of a guaranteed fixed annuity to you, another designated beneficiary, or both. The minimum age for establishing an annuity for the donor and beneficiary is 55. The amount the donor or beneficiary receives is determined by the age of the beneficiary and the amount of the gift using Uniform Rate Tables from the National Committee on Gift Annuities as a guideline.
A charitable gift annuity is a contract between you and the CAMC Foundation.
1. You transfer property to the CAMC Foundation. In exchange we pay you fixed income for life.
2. The fixed income can be quite high depending on your age.
3. A portion of your income stream may even be tax-free.
4. You will receive a charitable deduction for your gift of the remainder to the CAMC Foundation and the satisfaction of furthering our mission.
5. Charitable Remainder Trust
The charitable remainder trust is similar to other types of trusts except that it has a charitable beneficiary. You transfer property irrevocably to a trust and specify how trust income and principal are to be distributed. The trust may be created to become effective during life or at death.
4. Deferred Gift Annuity
The deferred charitable gift annuity makes it possible for you to claim an immediate income tax reduction, yet defer the receipt of the income for a term of years. You are able to determine the date the annuity payments start.
The deferred charitable gift annuity is an ideal choice for younger donors or those who have not yet retired, providing a tax deduction now and tax-favored retirement income later.
5. Charitable Remainder Unitrust
The primary feature of the unitrust is that it provides for payment to the income beneficiary in an amount which may vary. The payment must be equal to a fixed percentage of the new fair market value of the trust assets valued annually. The donor determines the fixed percentage upon creation of the unitrust, and it must be at least 5%.
The unitrust payment must be made annually or at more frequent intervals to you and/or another beneficiary for life. Or, the unitrust may be set up for a term of years not exceeding 20.
You are allowed an income tax charitable contribution deduction equal to the present value of the CAMC Foundation remainder interest in the unitrust, which is determined by reference to treasury regulations. The deduction is based on the fair market value of the asset transferred, the payout rate chosen, and the age and number of beneficiaries.
The unitrust can be funded with cash or with long-term highly appreciated securities or real estate. The Foundation does not serve as Trustee.
6. Charitable Remainder Annuity Trust
The annuity trust shares many common features with the unitrust.
Benefits of a Trust Gift
• Fixed income for life, lives or term of years
• Avoid capital gains tax on the sale of your appreciated assets
• Charitable income tax deduction for remainder portion of your gift to the CAMC Foundation
Charitable Remainder Annuity Trust for Fixed Income:
If you are nervous about the fluctuating stock market and want a fixed income, a charitable remainder annuity trust may provide you with the stability you desire. A charitable remainder annuity trust pays out a fixed amount each year based on the value of the property at the time it is gifted.
7. Charitable Lead Trust
This trust is the reverse of a Charitable Remainder Trust in that the income generated from assets placed in a trust is paid first to the CAMC Foundation for a determined period of years. After time the property either returns to you or is transferred to a named beneficiary or beneficiaries. By establishing such a trust you are, in effect, lending the asset to the CAMC Foundation for the term of the trust and in doing so may obtain substantial income or estate tax benefits.
How it Works?
You make a contribution of your property to fund a trust that pays the CAMC Foundation income for a number of years. You receive a gift or estate tax deduction at the time of your gift. After a period of time, your family receives the trust assets plus any additional growth in value.
8. Life Insurance
Gifts of life insurance are a very simple way to have a significant impact on the CAMC Foundation, even when you may not have many assets. There are several ways that you can structure a gift of life insurance to benefit the CAMC Foundation.
Paid Up Policies
You can make the CAMC Foundation the owner and beneficiary of an already existing paid-up life insurance policy. By doing so, you may be able to deduct an amount equal to the approximate cash value in the year that you make the gift. Since the CAMC Foundation becomes the owner of the policy, the proceeds will not be included in your estate for tax purposes.
You can make the CAMC Foundation the beneficiary of an already existing life insurance policy. Upon your passing, the full face value amount of the policy will go to CAMC. To make the CAMC Foundation a beneficiary of an already existing life insurance policy, you can simply request a beneficiary designation form from your employer or insurance company.
You can purchase a new policy and make the CAMC Foundation the owner and beneficiary. You may be able to deduct premiums as charitable contributions for as long as the premiums are paid, subject to state limitations. In addition, the proceeds will not be included in your estate for tax purposes.