Society of St. Vincent de Paul Council of Los Angeles
Planned giving offers donors the opportunity to establish gifts that will help the Society for generations to come. Planned gifts can be arranged through wills, trusts, insurance, and gifts of property. With proper planning, you can make wonderful gifts in support of the Society while maintaining or even improving your financial status. It is possible to make gifts while increasing income for you and your loved ones, providing for inheritances, and reducing or eliminating income, gift and estate taxes.
Wills & Living Trusts
The vast majority of Americans die without a will, leaving their estates to be distributed according to a legislative formula determined by the state government. A will or living trust, however, lets you provide for your family after your death, with the major difference between a will and a living trust being that the trust assets avoid probate. Wills and trusts are fully revocable so that you can terminate them at any time, and donations made to charities, such as the Society, are deducted from the value of the total estate for purposes of determining estate taxes. This allows you to provide support for the Society, while at the same time enabling you to reduce the rate at which your loved ones are taxed, thus preserving the value of the estate they will inherit.
Life Insurance Policies
Many Americans today have paid-up life insurance policies that are no longer needed. A gift of this policy to the Society would assure the future growth of the Society, provide you with an income tax deduction, and remove this asset from your estate, thus furnishing you with a reduction in your estate taxes. In addition, you might purchase a new life insurance policy, pay the modest annual premiums for several years, and make a significant gift to the Society by naming it as the beneficiary or contingent beneficiary.
Retirement Plan Assets
Retirement plan assets may be subject to double taxation upon your death by being assessed as much as 55 percent for estate tax purposes with the balance being prone to income taxes. Naming the Society as a beneficiary of your retirement plan will give your loved ones an estate tax charitable deduction, as well as avoid the imposition of any income tax.
Charitable Lead Trusts
This form of trust is a way to pass assets on to your family with a significant estate and gift tax savings, while at the same time making a gift to the Society. Assets that produce income are transferred to a trust for a fixed number of years. The Society receives an annual income for that period, after which the principal is returned to your family with estate or gift taxes reduced or eliminated. A charitable lead trust may be particularly appealing if you are the owner of a family business or you are willing to forgo investment income for a specific number of years, with the assets returning to your heirs at a future time.
Charitable Remainder Trusts
This form of trust allows you to obtain an income for life, while receiving a tax deduction and helping the programs and services of the Society at the same time. Setting up a charitable remainder trust permits the donor to receive a fixed or variable yearly income for life, a healthy tax deduction, and a reduction in estate taxes for the donor’s family upon his or her death, with the remainder of the fund benefiting the programs and services of the Society.
Charitable Gift Annuities
A charitable gift annuity is a simple contract between the donor, the Society of St. Vincent de Paul and the annuity agency. In exchange for a gift of assets, typically cash or stock, the donor will receive an annual payment of an amount based on the donor’s age and the value of the gift. For example, an 80-year old donor, at current rates, would receive an eight percent return on their donation annually. The donor also receives significant tax advantages, including an immediate charitable tax deduction, and a portion of each payment is considered a tax-free return of principal to the donor. The annual pay out would occur through the donor’s lifetime, and after the donor’s death, the remainder of the annuity will be placed in a restricted fund at the annuity agency for the Society of St. Vincent de Paul.
The Society strongly urges that all prospective donors of a planned gift seek the advice of their own attorney in reviewing the State and Federal Income Tax consequences of their gift, terms of any trust or annuity agreement and the advisability of the gift in light of the donor’s overall estate plan and financial circumstances.
For more information on the Society’s Planned Giving Program, Please Call:
Grace Casian – 323.276.6084