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- Life
Insurance,
which can be used as a charitable asset, thereby enabling the donor
to be eligible for a charitable tax deduction based on the current value
of the paid-up policy.
-
Retained
Life Estates, which are vehicles that ensure a donor has
lifetime security in a home they have given to the Foundation as a
charitable contribution.
For more information on planned giving through CFFSBC,
contact:
GARY BYRNE, director, gbyrne@cffsbc.org
BEQUESTS:
 Often
the easiest and most appropriate way to support the Foundation, a bequest
permits you to support your community while retaining complete control
over your assets. Bequests can be a specific dollar amount, a percentage
of your estate, or what remains after other
bequests - such as those to family members - are satisfied.
Through
a bequest you may arrange for your heirs to receive lifetime income from
your estate, with the remainder going to the Foundation for charitable
purposes. You may name a new fund, an existing fund, or a specific group
or organization to receive your bequest to the Foundation. Bequests to
the Foundation earn a full charitable deduction on estate taxes.
Here
is suggested language to use when naming the Foundation as the recipient
of funds through your will or living trust click here.
For
more information on planned giving through CFFSBC, contact:
GARY BYRNE, director, gbyrne@cffsbc.org
LIFE
INSURANCE
If
your need for life insurance has decreased, making a gift of a policy
can be a convenient and effective way of making a charitable gift. By
transferring ownership of the policy to CFFSBC, you become entitled to
a charitable tax deduction based on the policy's current value.
You
may also name CFFSBC as the contingent beneficiary of an insurance policy,
so if your primary beneficiary predeceases you, the policy benefits will
be used for the charitable purposes you select.
For
more information on planned giving through CFFSBC,
contact:
GARY BYRNE, director, gbyrne@cffsbc.org
RETIREMENT PLANS
If
a substantial balance remains in your IRA, 401(k), or other retirement
account after your and your spouse's death, these funds may be taxed at
the rate of 70% or more. This will substantially reduce your legacy to
your heirs. Here's how we can help.
Both
estate and income taxes on the value of the retirement funds can be avoided
by naming a nonprofit group such as CFFSBC as the remainder beneficiary.
This makes retirement fund assets ideal as a way of supporting your charitable
interests. You may either have
the funds distributed to the Foundation outright, possibly as a fund from
which your heirs may recommend charitable contributions, or to a charitable
remainder trust that will distribute income to your heirs and then go
to the Foundation for the charitable uses you designate.
For
more information on planned giving through CCFSBC,
contact:
GARY BYRNE, director, gbyrne@cffsbc.org
FUTURE
TRANSFER OF REAL ESTATE
Here's
how it works: You may give the remainder interest of your home to the
Foundation but continue to live in it during your lifetime. The gift is
considered a charitable contribution in the year the gift arrangement
is made, which may result in a substantial income tax charitable
deduction. When the life tenancy terminates, the Foundation becomes the
owner of the property. The proceeds of the sale may be used to add to
or establish a charitable fund or be distributed to the charitable organizations
you specify.
For
more information on planned giving through CFFSBC,
contact:
GARY BYRNE, director, gbyrne@cffsbc.org,
LIFE INCOME PLAN
With
a life income plan, you can increase your income (or provide income for
another person) with the knowledge that the funds remaining when the plan
ends will be used to support your charitable interests.
Here's
how it works: You transfer property (cash and/or other assets) to a trust,
such as a charitable remainder trust (CRT). You specify that payments
be made to you and/or one or more other persons for life, or for any period
up to 20 years. When the plan terminates, the
assets remaining are transferred to the Community Foundation for San Benito
County for the use you specified.
A
life income plan is appealing to people who own securities or real estate
that have increased in value but earn little income, since the assets
- once placed in the trust - can be sold and reinvested free of capital
gains tax, because the funds will ultimately be used for charitable purposes.
The entire proceeds of the sale are available for re-investment.
The
transferred property will be used for charitable purposes in the future,
so an income tax deduction is available in the year of the gift for the
value of the gift portion of the trust, and transfer taxes (gift and estate
taxes) are reduced or eliminated as well.
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