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In today’s economic climate, tax considerations can play a vital role in your choice of charitable gift planning arrangements.
Planning Can Help…
Bypass capital gain taxes Increase current income Reduce current income taxes Reduce federal estate taxes Conserve estate assets for those you love
Following are just several ways you can benefit the Vashti Center, other charities special to you and benefit you and your loved ones as well.
Bequests
A bequest is a gift by will and is an ideal way to continue helping the Vashti Center. Your bequest to the Vashti Center can be for, but not limited to:
1. A specific dollar amount.
2. A percent of the Estate
3. The residue of the Estate after other bequests are settled.
4. A tangible asset (stock, mutual fund, real estate, boat, etc.)
Our legal name and physical address is:
The Vashti Center, Inc.
1815 East Clay Street
Thomasville, Georgia 31792
Gift Annuities
This plan enables a donor age 65 or older to give $5,000 or more and receive a fixed, dollar income for life. The amount of income is determined by the amount of the gift and a rate, which is based on the donor’s age. Because the income is paid for life, the older a person is, the higher his/her rate of income. A percentage of each income payment is TAX FREE. The result is more spendable income for you.
Gift Annuities can be for a single individual or for two individuals under a joint-survivorship arrangement. This is an ideal plan for Senior Citizens.
Charitable Remainder Unitrusts
A charitable remainder unitrust is an irrevocable trust with a percentage of return agreed on in the beginning, which does not change. The donor received a percentage of the current value each year.
The assets in the trust are revalued each year and the donor receives a fixed percentage of the value for that year. The payment could go up or down, depending on how well the trust investments produce. If invested prudently a unitrust can provide a hedge against inflation. The income arrangement can be for two lives in which case the income would be payable for as long as either shall live.
The unitrust is an ideal method for the tax-free investment of appreciated assets. First, the donor transfers the property to the trustee. Since the trust is tax exempt, the trustee can sell the assets, reinvest the sale proceeds and bypass the capital gains tax. Usually, the trustee is able to reinvest in a much higher yield investment and greatly increases the yield on the trust assets. Finally, in the year that the trust is funded, the donor receives a current income tax deduction based upon U.S. Treasury tables.
Revocable Living Trusts
When an individual wants to make a large gift, but also needs to keep a reserve fund in case of an unforeseen financial setback or emergency, the revocable living trust may be appropriate.
You can make the gift you desire, receive the income from the trust for yourself or someone else you designate, and at your death whatever remains in the trust becomes a gift to the Vashti Center. In the meantime, if you need part or all of your gift back, you simply ask for it. It’s yours, no questions asked.
The amount that eventually goes to the Vashti Center is completely deductible from estate taxes and, because it is a trust, some estate settlement costs may also be saved. However, since the gift is revocable, there are no income tax deductions.
Securities
Securities can be especially effective gifts because of tax advantages. Securities (including stocks, bonds, and mutual funds) are considered long term if they have been held longer than six months. These are the securities that have the best tax benefits when given to the Vashti Center.
Securities can be given outright or in exchange for a life income arrangement either as a Charitable Remainder Unitrust or Charitable Gift Annuity.
Gifts of Life Insurance
A life insurance policy can enable an individual to make a substantial capital gift at death to the Vashti Center. The charitable gift in the form of income tax deductible life insurance premium payments can be made from current income without deleting existing savings.
Premium payments need not be a lifelong commitment. Life policies can be self-completing after only 5 to 10 years depending upon the age and health condition of the insured.
The death proceeds of the policy paid to the Vashti Center, where the insured retained no incident of ownership at the time of death, are not subject to federal estate tax. The life insurance gift enables a donor to make a generous gift, relative to the modest cost involved, through periodic investments.
If you would like specific information about any of the gift arrangements mentioned in this brochure, or would like to speak with a member of our Financial Development Office, please contact The Vashti Center at (229) 226-4634 or email us.
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