Life income gifts are not the only kind of planned gift. Many others exist that offer particular advantages for specific circumstances. The following presents a sampling of the most popular. If you believe your own situation requires something not described here, the Barton Community College Foundation will be happy to discuss other options with you.
Your personal residence or farm may be the single most valuable asset you own. If it has appreciated significantly in value, you could owe tremendous capital gains taxes if you or your heirs sold the property. An alternative is to give the property to the Barton Community College Foundation which simply means that you or your designees retain the use of the property for life. You gain an immediate tax deduction for the remainder interest in the property, and you escape the potential capital gains taxes. Best of all, you get to make a substantial gift for Barton Community College without disrupting your lifestyle.
Gifts of this kind require detailed language tailored to your specific situation and needs, and the advantages and benefits vary accordingly. The Foundation's staff will be happy to work with you and your advisers to help you arrange the best plan for you.
When you make a gift to the Barton Community College Foundation for the benefit of the College, you may use a life insurance trust to replace the value of the donated assets. In this way, you can protect the interests of your heirs while still fulfilling your philanthropic goals. The life insurance provides the dollar amount, and the trust, provided it is irrevocable, removes the proceeds from your will for tax purposes. In this arrangement, you create a trust to buy insurance on your life, with your children as beneficiaries. You can use the tax savings from your charitable gift, or the payout from a life income arrangement, to cover the premiums. After your death, the proceeds from the policy pass to the trust free of taxes, thereby replacing the value of the original charitable gift.
Wealth replacement life insurance trusts can be set up in several different ways, and all have strict technical requirements. You should discuss them with your financial and legal advisers before deciding to pursue this option.
A charitable lead trust is like a charitable remainder trust in reverse. You select the assets used to fund the trust and decide how long it will last, and the Barton Community College Foundation receives income from the trust while it exists. There is no minimum payout. When the trust terminates, its assets return to you or your designated beneficiary.
This type of trust can be useful if you want to reduce your current income, but wish to retain the assets for your family. A charitable lead trust can be a means to transfer substantial amounts of wealth from generation to generation, free (or largely free) of income, inheritance, and gift taxes.
A charitable lead trust is a complex giving vehicle with many asset transferring benefits. You should discuss your goals with your legal and financial advisers to determine whether a charitable lead trust would suit your plans. You are also encouraged to contact the planned giving professionals at the Foundation for more detailed information.
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