Planned gifts allow individuals to continue making an impact on their community after they are gone. With a planned gift, many people find that they are able to contribute more than they thought possible, while still providing for their family.
Gifts of Life Insurance
If you are a donor who wants to achieve immediate tax benefits, you should consider irrevocably assigning an insurance policy to the Fairfield County Foundation. You will receive an immediate federal income tax charitable deduction in the year of the assignment. The value of the deduction is equal to the lesser of the policy’s replacement value or the cost, in terms of net premiums. Not only do you receive an immediate tax deduction and substantial estate tax savings later, but also the satisfaction of supporting your charitable interests. Any type of fund may be established with an insurance policy.
Pension Plan Distributions
Retirement plan proceeds, paid after death may be subject to both income and estate taxes. Naming the Foundation as the after-death beneficiary of one or more such plans can save such taxes and greatly assists the community.
Gifts Through Wills & Bequests
Bequests offer varied ways of giving to the Foundation. Through an outright bequest in one’s Will, cash securities, or other property may be bequeathed. The taxable estate is reduced by the total amount of the charitable bequest.
Charitable Remainder Trusts
A Charitable Remainder Trust provides life income for one or several income beneficiaries, such as the donor and the donor’s spouse, and leaves the remainder interest to the Foundation or designated beneficiary. Significant income and estate tax savings will result from this method of gifting.
Charitable Lead Trust
Some donors may be in a position to lend the income from capital donated through the establishment of a trust and, in so doing, may receive substantial tax benefits. The income generated from assets placed in a Charitable Lead Trust is paid to the Foundation for a period of years, after which the trust is terminated and the assets are returned to the donor.
Charitable Gift Annuities
Some donors would like to increase or begin their support of the community but don’t think they can afford to at this time. The Charitable Gift Annuity can make it possible for donors to assist the community in the future while providing lifetime income for themselves. Under this arrangement a donor transfers assets, cash or securities, to the Foundation in exchange for a commitment by the Foundation to pay the donor a fixed and guaranteed payment for the remainder of his or her lifetime. The total amount of the payment does not change once established. Upon the death of the donor, the remaining principal is retained by the Foundation to carry out the donor’s charitable intentions. An income tax charitable deduction is realized in the year the gift is made.