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Making a Planned Gift
There are several options acceptable to
the Internal Revenue Service for making a planned gift to the Eastern Shore
of Virginia Community Foundation (ESVCF). Because of ESVCF’s affiliate
relationship with The Norfolk Foundation, planned gifts in most cases
require the naming of both ESVCF and The Norfolk Foundation in planned gift
documents. Details for planned gifts should be discussed with your
professional advisor and the staff of ESVCF.
Once you have made arrangements for a planned gift, you will have peace of
mind in knowing that the Eastern Shore community will benefit in the future,
while providing benefits for yourself.
Options for planned gifts include:
Bequests
Bequests are a straightforward way of creating a fund. You can designate a
specific amount, a percentage of your estate or the residue and remainder of
it. Through the type of fund you establish you can support specific
organizations, address general charitable causes, help students with
scholarships or benefit an array of nonprofit needs.
The staff of ESVCF can help with suggested language to share with your legal
counsel.
Beneficiary Designations
Many people now are reaching the age when they can tap into Individual
Retirement Accounts and other retirement funds. Often a portion of these
assets will remain after their lifetimes. If you plan to pass these
retirement assets on to anyone but your spouse, they are subject to
significant taxation – as much as 80 cents or more on the dollar. Utilizing
a fund within ESVCF as the successor beneficiary to a spouse for those
remaining assets removes the assets from your estate for tax purposes.
Whether you decide to support specific nonprofit organizations or to create
a scholarship to help students, ESVCF will provide ongoing stewardship to
ensure your wishes are fulfilled.
Charitable Remainder Trust
A charitable remainder trust permits you to make an irrevocable gift but to
continue to receive income on the gifted assets. Moreover, if appreciated
assets are used to fund your trust, you will not be subject to capital gains
taxes. You will also be entitled to an income tax charitable deduction.
There are two types of Charitable Remainder Trusts: Unitrusts and Annuity
Trust. In both cases, the term may be for life or a period of years up to a
maximum of 20 years. The minimum annual percentage payout is 5%.
The Eastern Shore of Virginia Community Foundation offers a great deal of
flexibility for Charitable Remainder Trusts. The Foundation can provide a
list of financial organizations that can serve as trustee. You can use trust
assets to establish a fund that will support specific organizations, general
charitable causes or create scholarship programs. Your fund will receive the
assets at the end of the trust term and provide ongoing stewardship for your
charitable endeavors.
Charitable Lead Trust
Often described as the reverse of a Charitable Remainder Trust, a Charitable
Lead Trust distributes income to your charitable fund for a period of years
or throughout your lifetime. Then the assets return to you or, more
typically, to surviving family members. The result is gift and estate tax
savings. If planned correctly, a Charitable Lead Trust will allow you to
make a significant gift to charity and transfer assets to family members
with reduced or no gift and estate taxes.
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