Deferred Gifts and Planned Giving

• Donor Directed Funds
  - Provides tax benefits to the donor.
  - Allows donor to benefit two or more charities simultaneously.
  
  
• Charitable Gift Annuity
  - Provides a fixed income for the lifetime(s) of one or two annuitants.
  - Amount paid determined by the rates recommended by the American Council on Gift Annuities.
  - The older the annuitant, the higher the level of income.
  - Portion of gift and income are tax deductible.
  
  
• Life Income Trusts
  - Trust assets are funds or property contributed by donor (usually $100,000 or more).
  - Flexibility in type of property that can be donated.
  - Real estate and municipal bonds may be used.
  - Provides a fixed amount of income (Charitable Remainder Annuity Trust).
  - Provides a variable level of income (Charitable Remainder Unitrust).
  
  
• Charitable Lead Trust
  - Donor provides assets for use for a limited period of time.
  - Funds are invested to provide income to Teton County Library Foundation.
  - Assets returned to donor or to estate at end of designated period.
  - Can fulfill a pledge while reducing estate and gift taxes that might otherwise be due on assets given outright to heirs.
  
  
• Wealth Replacement Trust
  - Protects inheritance interests of heirs.
  - Using resulting tax savings, donor purchases a life insurance policy with heirs as beneficiaries.
  
  
• Life Insurance
  - Make the Teton County Library Foundation sole owner and beneficiary of paid-up policy.
  - Receive income tax deduction for the cash surrender value of policy.
  - If policy not fully paid, continue to pay premium.
  - Receive tax deduction for annual premium amounts.
  
  
• Bequests
  - Outright bequests, as well as certain bequests in trust, are not subject to estate taxes.
  - Actual cost is less than face value of gift because of tax benefits to estate.
  - Bequest can take any of the following forms:
  - Bequest of a dollar amount of particular securities or other property.
  - Residual bequest of all or portion of estate after payment of specific amounts to other beneficiaries.
  - Contingent bequest to take effect if other beneficiaries die before the donor.
  - A bequest can often be arranged simply with the addition of a codicil amending an existing will.