Beneficiary Designation (Retirement Asset)
One of the easiest ways to leave a charitable gift is to designate the Community Foundation as the beneficiary of an IRA, annuity or a retirement plan. A retirement plan is one of the best types of assets to transfer to the Community Foundation because it produces taxable income. Beneficiary proceeds directed to us are not subject to income and estate taxes. When you name the Community Foundation as a beneficiary of specific assets, you enjoy some flexibility and simplicity in giving including the ability to change the designation during your lifetime; designate all or a portion of the asset; or designate the charity as a beneficiary without the help of an attorney.
Charitable Gift Trust
A Charitable Remainder Trust is a contractual agreement between donor(s) and the Foundation under which the donor(s) makes an irrevocable contribution of cash, securities or property to the Trust. In exchange for the property, the Foundation agrees to provide income for a specific period (the donor(s) lifetimes or for a period not to exceed 30 years).
Giving through a charitable remainder trust allows you to place cash or property in a trust that pays annual income to you (or another designated beneficiary) for life. After your death, the remainder of the trust transfers to the Community Foundation and is placed in a charitable fund in your name or one that you have chosen. You receive income tax benefits the year you establish this trust.
The Foundation may administer the trust or have a second party administer the trust. The Foundation’s legal counsel will review the proposed trust and make a recommendation to the board for approval, including the fee structure if a second party is recommended. Such fees will be deducted from the earnings of the fund or the fund corpus, and not from the payment to the beneficiary(s).
A charitable gift made through an Estate Plan or ‘Last Will and Testament’ which is revocable during the donor’s life and receivable only upon the donor’s death. A bequest can be for a specific gift, a specific asset or property, or a specific percentage of the donor(s) estate.
Life Insurance & Life Insurance Beneficiary
These primary means by which donor(s) may give a life insurance policy:
1. Irrevocably assign a paid-up life insurance policy to the Foundation, naming the Foundation owner and beneficiary of the policy.
2. In some cases, donor(s) may irrevocably assign a whole life or a term policy to the Foundation and continue paying the annual premiums until the policy is paid-up.