Planned Giving Examples

By making a planned gift, you can establish a tradition of giving that will continue to provide benefits long after you’re gone.

A planned gift can be made through any of the following:

• Last Will and Testament
• Revocable Living Trust
• Life Estate Agreement
• Life Insurance and/or Annuity Policy
• IRAs or other retirement plan
• Pooled Income Fund

Here are some of the other most common and popular ways to make a planned gift:

Bequest (Through a Will or Trust):

• A bequest provision in your will or revocable trust, either as an outright sum or
  as a percentage of your estate, in an unrestricted form or for a specific purpose
  you specify.
• This provision can be modified if circumstances change.
• There is no upper limit on the estate tax deduction that can be taken for this bequest.

Charitable Remainder Trust (CRT):

• You transfer cash, securities or other appreciated property into a trust.
• The trust pays a percentage of the market value of the assets, re-valued annually
  or at a fixed amount, to you or to beneficiaries you name.
• When the trust ends, the principal passes to UNO.
• The benefits of a CRT are:

– An immediate tax deduction for a portion of your contribution to the trust.
– No capital gains tax on appreciated assets you donate.
– You or your designated beneficiaries receive income for life or a term of years.

Charitable Lead Trust (CLT):

• You contribute cash, securities or other property to a trust.
• The trust makes fixed annual payments to UNO for a specified term of years.
• When the trust ends, the remaining principal goes to your heirs.
• The benefits of a CLT are:

– A gift tax deduction for the present value of the annuity payments to UNO.
– The annuity payments and the term of the trust can be specified in such a way as
to reduce or even eliminate the transfer taxes due when the principal reverts to heirs.
– All appreciation that takes place in the trust goes tax free to your heirs.
– The estate tax credit can be used to further reduce taxes on transfers to heirs.

Charitable Gift Annuity (CGA):

• You transfer cash or securities to UNO.
• UNO pays you, or up to two annuitants you name, fixed payments for life.
• The principal passes to UNO when the contract ends.
• The benefits of a CGA are:

– An immediate income tax deduction for a portion of your gift.
– Your annuity payments are guaranteed for life, backed by a reserve and the assets
of UNO.
– Your annuity payments may be treated as part of ordinary income, part capital gains
income (15%), and part tax-free income, depending on the assets used to fund the annuity.