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Charitable
Planning
Helping Yourself and Gamma Mu Foundation
Lifetime Gifts
Generally speaking, philanthropy can take two forms: direct giving, in which
an individual (the "donor") gives an immediate gift of cash, art or other property to a charitable
organization or planned giving, by which a donor pledges future benefits to a charity.
Although the income-tax benefits of lifetime gifts vary,
they can be substantial, thereby making philanthropy an
important part of estate planning.
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Charitable Bequests
Many donors make significant charitable gifts through a will or other
arrangement taking effect after death. If properly structured, such gifts can be deductible for estate tax purposes
which would otherwise be payable by the estate. A charitable bequest can
be a specific amount of money, a valuable item or a percentage of the estate.
It may also be in the form of a Charitable Lead Trust (CLT) or a
Charitable Remainder Trust (CRT), which can provide benefit
to both charity, and the individual during his or her
lifetime.
Gifts of Appreciated Property
Gifts of appreciated property, such as marketable securities, may have greater
value than gifts of cash. With public charities, a donor may deduct the full market value
of the donated security up to 30 percent of the donor’s AGI. Suppose a donor paid $3,000 for
a security valued at $50,000 when donated. The donor can deduct $50,000, the fair market value,
and avoid paying capital gains tax on the $47,000 of appreciation.
Charitable Remainder Trust (CRT)
Charitable Remainder Trusts (CRT) can be funded with
cash, tax-exempt assets, or appreciated property. They
distribute either a fixed dollar amount of income
(an annuity trust) or a variable amount (unitrust),
either for a set term of years or for the lifetime of
the beneficiaries after which the charitable
organization received the remainder of the trust assets.
Charitable Lead Trust (CLT)
In contrast with the CRT, the CLT pays charity an up-front interest,
usually for a fixed number of years. At the end of the period, the property passes to the donor’s heirs. Gift and
estate taxes are reduced because the present value of the remainder interest to the donor’s heirs is red income interest.
Some Gifts Options:
The Gamma Mu Foundation offers many planned gift options that may fit your situation, such as
Charitable Trusts or Bequest Provisions. Many of these
gift vehicles can provide life income for the donor and
major support for Gamma Mu Foundation.
» Click & Give to the Beneficiary of My Estate Plan
...
For more
information relating to Charitable Planning, please
contact
Gamma Mu Foundation
1975 East Sunrise Blvd. Suite 624
Ft. Lauderdale, FL 33304
or Email info@gammamufoundation.org
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