Thinking that writing a check and making an outright gift is your only option to protect Lake George today and for future generations?
Charitable gifts can come in many forms. You might consider one of the following options:
- IRA — Required Minimum Distribution — Each IRA owner over age 70½ may make a transfer of up to $100,000 per year to a qualified charity. IRA charitable rollovers are tax-free and not included in adjusted gross income. An IRA charitable rollover may fulfill part or all of your required minimum distribution (RMD).
- Appreciated Stock — With the stock market currently at significant highs, it may be a good time to consider a donation of appreciated stock to the LGA. You can take an immediate tax deduction for the full market value of the stock and also avoid the capital-gains tax you might owe by cashing in the securities. Then, using the cash you might have otherwise donated, you can repurchase the same stock at a higher cost basis for capital-gains purposes. Please call the LGA for transfer instructions.
- Transfer by Will, Trust or Beneficiary Designation — You can give assets to the LGA at your death through your will, living trust or beneficiary designations on your life insurance and retirement plans. Using this technique, your estate receives an estate tax deduction. You may also consider naming the LGA as alternate beneficiaries behind your initial choices.
- Gifts of Other Assets — Among the assets you can give outright are land, improved real estate, bonds, life insurance, art, rare books, historical maps, and jewelry. You’ll receive an income tax deduction as well as estate tax benefits.
Or as you begin your Estate Planning, you may also consider one of these options:
- Charitable Remainder Trust (CRAT) — You can set up an irrevocable trust and transfer an asset(s) to it. Then, the trust makes annual distributions back to you during your lifetime and, possibly, the lifetimes of other persons named by you. When the last beneficiary dies, the LGA receives the remaining trust assets. With this, you receive a fixed flow of income, an income tax deduction, estate tax benefits and save on capital gains tax.
- Charitable Remainder Unitrust (CRUT) — This type of Trust has many similarities to the CRAT above. The most important difference is that payments to you may fluctuate upward or downward depending upon the value of trust assets each year. CRATs and CRUTs are generally used for large donations.
- Charitable Lead Trust (CLT) — In this case, the LGA receives the income first, for a specified period of time, then the remainder goes to someone you designate, usually your children or grandchildren. This works particularly well when the asset is generating good income and growing in value. Using this technique properly can have a material effect in saving estate taxes.
- Life Estate — With this approach, you retain the right to live in or use real estate, including your personal residence. Upon your death, or your death and the death of some other party with rights to the property, the LGA receives the real estate. This plan also allows for you to receive an income tax deduction and estate tax benefits.
Please call the LGA for transfer instructions.
We always recommend that before you act, you check with your tax advisor or attorney to see which option works best for your circumstances.