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Thinking About a New Car? Consider a Different Kind of Vehicle—For a Planned Gift!

Posted April 2019
Springtime is the top car-buying season of the year. Why? Because people who filed their taxes early are receiving their income-tax refunds and rushing out to spend that money—and cars are often the top item on their lists (a tip about that is to come). But how about considering a different kind of vehicle instead: A planned gift vehicle with our organization?

Charitable bequests, of course, are the most popular planned gift that we receive. But many donors don’t know that there are many ways to design a charitable bequest. Nor do they know about all the other planned gift vehicles that may provide tax advantages and other benefits specific to their situations. Here is a quick summary of some of the main kinds of gift vehicles:

Bequests—These are gifts under your will or living trust. A bequest can be a specific amount of money, a specific piece of property, a percentage, a residual bequest (what is left after other bequests are distributed and debts paid), or a contingent bequest (when your primary intention cannot be met for some reason).

Life-income plans—These are gifts that pay income to you, including charitable remainder trusts. You can create a trust to become effective during life or as part of your estate. It can provide payments to you or to whomever you wish, with a fixed or variable payout. The remainder, of course, comes to us.

Gifts of retirement-plan assets—A simple way to make a gift from your IRA, 401(k), 403(b), or other defined contribution plan is to name our organization as a beneficiary of all or a percentage of whatever might remain in the fund. You need only complete a change-of-beneficiary form. This is a cost-effective way to make a gift because these assets are tax-free to us but are typically subject to income tax when received by your loved ones.

Gifts of life insurance—You can name us as a beneficiary of all or a percentage of life insurance proceeds—and you can change the beneficiary if your family circumstances change.

Charitable lead trusts—You can make a gift to us and still keep the funding assets in the family. This trust pays income to us for a certain period of time and then either returns the assets to you or distributes them to your loved ones.

Please contact us to discuss which of these gift vehicles might best fit your situation. 

Oh, and about that car? Because of the increased demand during tax-refund season, automobile prices tend to be higher from mid-February to early June. So hold off on that type of vehicle—and contact us instead!

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