Considering a planned gift? Bequests, trusts, life insurance, and other planned gift options can have a meaningful impact on JA of Washington. Your deferred gift will ensure the longevity of the organization’s programs for generations of youth to come.
Bequests: A bequest to JA of Washington can easily be included in your will. You can bequeath a percentage of your estate, a lump sum, the remainder of your estate after your heirs are provided for, or even an amount contingent on whom you are survived by.
Income Gifts: A life-income arrangement operates as follows: you irrevocably contribute cash, appreciated securities, or other property to JA of Washington, which then invests the property and pays you and/or a beneficiary an annual income for life or a term of years. Determing the right plan for you depends on a number of factors including your age, type of assets, income needs, and financial objectives. To learn more about a specific life-income arrangement, review topics below to find one that best describes your goals.
Variable or Growing Income
Charitable Remainder Unitrust: The charitable remainder unitrust is an arrangement that enables you to contribute to JA of Washington while retaining and income for life or for a term of years. The unitrust pays the income beneficiary a variable income, based on a fixed percentage of the trust assets as determined once each year. One of the advantages of the unitrust is that your income can incresae as the trust principle grows over time.
On the death of the last income beneficiary or conclusion of the term of years, the trust terminates and the principal is released to JA of Washington. A unitrust gives you the flexibility of providing income for you, your spouse, your children, or another beneficiary.
Charitable Gift Annuities: Charitable Gift Annuities can provide you with income immediately or during retirement. With a charitable gift annuity, you donate an asset to JA of Washington and the organization will provide you with a dividend. You will realize tax benefits at the time of the gift and a portion of the income you receive will be tax-free.
Charitable Remainder Annuity Trust: Charitable remainder annuity trusts enable you to contribute to JA of Washington while providing an income for yourself and/or another beneficiary for life or a term of years. The annuity trust pays you and/or another designated beneficiary a fixed annual income (in quarterly installments), based on a percentage of the initial market value of the trust. Depending on the funding assets and investments, the trust may pay you tax-free income. A JA of Washington managed annuity trust can be established with an irrevocable gift valued at $100k or more. Typically, cash or publicly traded stocks and bonds fund an annuity trust.
Transfer Wealth to Your Heirs With Tax Savings
Charitable Lead Trust: There is a way to make a charitable gift to JA of Washington that will eventually be returned to your children or grandchildren. Transfer assets such as cash, publicly traded securities, closely held stock, bonds, income-producing real estate, or a combination of these to a trust. JA of Washington receives its gift in the form of annual payments from the trust over a period of several years. In effect, you are “lending” the assets to JA for ther term of the trust. At the end of the time period you designate, the principal of the lead trust passes to your heirs. Not only can you avoid tax in the income of such a trust, there can also be very attractive estate and gift tax savings.
Other Giving Options
Life Insurance: You can name JA of Washington as a beneficiary to a life insurance policy that you may no longer need. It may be a policy that is paid for, one on which you are still paying premiums, or a new policy. For policies that are paid for, you can take a tax-deduction for the replacement cost of the policy.
Retirement Plan: A donation of all or part of an IRA or other retirement account can prevent these funds from being a double tax burden on your heirs. Because most retirement plans are not taxed as income throughout your life, they may be subject to both income and estate taxes at the time of your death. Whether you leave a retirement plan to a trust or bequeath it directly to JA of Washington, you can make your estate less vulnerable from taxation.