Angus Foundation Planned Giving Program

 

Angus Legacy SocietyThrough a planned or deferred gift, donors can significantly impact the Angus Foundation's education, youth and research programs and advance the Angus breed. A donor may make his or her gift unrestricted so that it can be used in an area where it is needed most, or designate the gift to benefit the donor's favorite Angus Foundation program.

 

Planned gifts are as unique as each individual who makes one and may be tailored in a way that best serves the donor's needs, objectives, and wishes, along with that of the Angus Foundation. Among planned gift options are:

 

 

1. Bequests

Many donors choose to make a planned gift through a will or living trust, which enables them to retain the use of their assets during their lifetime, while helping the Angus Foundation in the future. Bequests can be a specific dollar amount, a percentage of your estate or the balance of your estate after providing for your family or other loved ones. A bequest removes those assets from your estate and reduces estate tax liability. To help the Angus Foundation plan for the future, along with appropriately recognizing (unless the donor requests anonymity) the individual, it is desirable for donors to provide the Angus Foundation with a copy of the relevant portion of his or her will or living trust.

 

The Angus Foundation's professional development staff can assist you and your legal counsel in preparing the appropriate verbiage in your will (or a codicil to your existing will) stating your intentions and wishes for your bequest in advancing the Angus Foundation's education, youth and research programs.

 

For example, the John and Jane Doe Memorial Angus Scholarship Endowment Fund can be established through a bequest that upon the Doe's demise, the bequest becomes the permanent endowment of which only the annual investment revenue is utilized to fund scholarships that will empower young men and women to realize their dreams of acquiring an education at the college or university of their choice. These scholarships could be awarded each year at the National Junior Angus Show to the deserving recipients.

 

2. Retained Life Estate

A gift of your home or farm can be made without giving up the use of your property during your lifetime. You may also provide for your spouse or other loved one to live there upon your death. You can obtain a charitable income tax deduction based on the value of the property and your age. Property taxes and insurance remain the donor's responsibility.

 

3. Charitable Remainder Trusts

The charitable remainder unitrust and the charitable remainder annuity trust are two life income planned gift options that allow you to make a gift to the Angus Foundation and receive income back annually from that gift for you or a family member for the rest of your life or for a set number of years while also receiving a current income tax deduction for the gift.

 

A charitable remainder trust is established when the donor irrevocably transfers cash, securities or real estate to fund the trust. With the transfer of appreciated securities or real estate, the donor not only receives the charitable gift deduction, but also avoids capital gains tax. Upon the termination of the trust, the remaining principal in the trust is directed to the Angus Foundation's education, youth and research program of the donor's choice at the time the trust is established.

 

4. Charitable Gift Annuity

The charitable gift annuity is not a trust, but is a contract between the Angus Foundation and the donor whereby the Foundation promises to pay a fixed annuity to a maximum of two beneficiaries (beginning immediately or deferred to a later date) in exchange for the irrevocable transfer of assets by the donor to the Foundation. Annuity payments are based on the initial market value of the assets contributed and the ages of the income beneficiaries. A portion of the annuity payment may be considered a tax-free return of principal. An income tax deduction is allowed for a portion of the total gift value, and capital gains tax is avoided as well. The charitable gift annuity is very popular due to its simplicity and effectiveness in providing immediate income tax deductions with a high level of tax advantaged income. A $5,000 minimum gift amount is also attractive to many donors.

 

5. Wealth Replacement Trust

Perhaps you would like to make a sizable contribution to the Angus Foundation now to help meet our current needs, but you don't want to reduce the estate you will pass to your family. The solution?

 

Purchase life insurance. "Sounds like a good idea," you say, "but then I'll have to pay the premiums on the policy." True enough, but depending on your age, health and top tax bracket, the income tax savings from your charitable gift may be enough to cover the premium cost.

 

Assuming your estate is taxable, dollar-for-dollar asset replacement isn't necessary. A smaller amount of insurance can be enough to restore your family's after-tax inheritance. If you are married, a second-to-die policy can offer the most coverage per premium dollar.

 

If you own the insurance policy, ultimately the proceeds will be included in your taxable estate. The remedy: If your sole heir to the policy value is a responsible adult, make him or her the policy owner and beneficiary. Then give that individual a yearly amount adequate to pay the premium, utilizing your annual gift tax exclusion.

 

For multiple heirs or a larger gift, take advantage of an exceptional plan called a "wealth replacement trust" and name your spouse, children or other individuals as trust beneficiaries. The trust is the owner of the policy and eventually will receive and manage the proceeds. The trust is irrevocable, and if designed correctly, the insurance will be excluded from your taxable estate. You transfer enough money to the trust each year so that the trustee can pay the policy premiums.

 

To avoid any gift tax (or use of your estate and gift tax credit) on yearly gifts to the trust over the annual gift tax exclusion, the trust agreement must give your beneficiaries the temporary right each year to withdraw these funds. However, should your beneficiaries exercise this power, the insurance may lapse due to insufficient funds to pay the yearly premium. Together with you and your attorney, we can help design a plan that preserves your estate's value while fulfilling your desire to benefit the Angus Foundation's education, youth and research programs.

 

Disclaimer: The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.