The term “planned giving” refers to a charitable gift that requires some planning before it is made. More specifically, when a donor decides to leave assets to Adelante Development Center in his or her Will, they are making a bequest. The donor’s estate will receive a charitable estate tax deduction at his or her death, when the gift is made to Adelante.
Bequest or Will
A will or bequest is the easiest way to ensure that you fully provide for your family and that your assets are distributed as you wish. A bequest through your will also provides continuing support for the programs at Adelante you care so deeply about. Charitable gifts through your will may be 100 percent deductible for estate planning purposes.
Charitable Remainder Trust
This trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to Adelante. The donor may claim a charitable income tax deduction and may not have to pay any capital gains tax if the gift is of appreciated property. At the end of the trust term, Adelante receives the remaining funds in the trust. Charitable remainder unitrusts provide some flexibility in the distribution of income, and thus can be helpful with retirement planning. Provisions may be included in your trust that allows income to be redirected back to you, as needed, at a future date.
Charitable Lead Trust
This trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to Adelante during its term. At the end of the trust term, the remaining assets can revert back to the donor (a grantor lead trust) or to heirs named by the donor (a non-grantor lead trust). The donor may claim a charitable income tax deduction for funding a grantor lead trust or a charitable gift tax deduction for funding a non-grantor lead trust. Since lead trusts are typically used to pass assets to heirs, non-grantor lead trusts are far more common than grantor lead trusts. In this case, assets may forego estate taxes at your passing, given that they have been removed from your taxable and probate estate.
Retained Life Estate
A donor may make a gift of his or her personal residence, farm, or vacation property to Adelante and retains the right to live there for the remainder of his or her life. The donor may receive an immediate income tax deduction for the gift. At the donor’s death, Adelante, may use the property or sell the property in a manner that best serves the organization.
Life Insurance and Retirement Accounts
Name Adelante as the beneficiary of your insurance policy, purchase an insurance policy in the name of Adelante, or transfer a current insurance in the name of Adelante.
Each individual’s or family’s financial situation is unique. We strongly recommend that you consult your financial advisor, accountant, or tax attorney to help you include Adelante in your estate planning. Should you or your financial advisors seek additional details, please have them contact Ernest Naaz, VP of Development at 505.449.4033 or ERNaaz@GoAdelante.org.