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.
- 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.
- 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.