What Gifting Strategies Are Available to Me?
There are a number of different strategies available for planned giving. Each has its advantages and disadvantages. We have included a chart to give you an overview of these choices.
We have the expertise and experience to help you make the right choice for you. Please contact John Williams for further information.
| Advantages | Disadvantages | |
|---|---|---|
| Outright Gift | Deductible for income taxes | No retained interest |
| Charitable Lead Trust | A current gift to charityGift is placed in a trust
The recipient of the gift draws income from the trustCurrent income tax deduction Pass assets to heirs with little or no estate tax |
Transfer of assets is irrevocableIf current income tax deduction is taken, future income is taxable to donor
Donor gives up use of income for life of the trust |
| Pooled Income Fund | Income tax deduction
As beneficiary, you can draw income during your life Non-income-producing assets can be converted to income-producing assets |
Income is unpredictable from year to yearIncome received is taxed as ordinary income
Remainder interest will usually go to only one charity |
| Charitable Remainder Unitrust | You can draw incomeCurrent income tax deduction
Avoids capital gains tax on appreciated property Reduce future estate taxes |
Transfer of assets is irrevocableQualified appraisal generally required
Complex administration and setup |
| Charitable Remainder Annuity Trust | You can draw income Income tax deductionAvoids capital gains tax on appreciated property
Fixed income |
Fixed payment cannot be limited to the net amount of trust incomeQualified appraisal generally required
Complex administration and setup |
