A QUICK PRIMER ON GIVING
Frequently asked questions on Planned Giving!

What is Planned Giving?

Planned gifts allow you to achieve both personal and financial goals while leaving a legacy promoting their values and help the Clinton County Historical Society.  Many gifts entitle donors to significant capital gains and estates tax forgiveness as well as a charitable deduction for federal income tax purposes.  Through planned giving, you may be able to increase your current income, or provide additional retirement income. 

How are such gifts funded?

Usually gifts are funded with appreciated assets, such as stock, which provide the greatest benefits to the donor, but cash is frequently used as well.  These gifts may be made during lifetime, or after death through a bequest will.

What type of Gifting Opportunities are there?

BEQUESTS

The simplest way to gift to CCHS is through your will.  This is a bequest.  You can bequeath a specific sum,  a percentage of your estate or specific property.  A bequest enables you to make a lasting gift to CCHS, while providing the security of knowing that you have complete access to your assets should you need them for medical or other expenses.  A bequest may also enable you to reduce your taxes.

GIFTS OF APPRECIATED STOCK

Many people have securities that have increased greatly in value since their purchase.  By using these stocks for charitable giving, donors can conserve cash for other purposes and maximize the value of gifts.  Donors can deduct the full fair market value of appreciated securities and pay not capital gains on their transfer to CCHS.  This can reduce the cost of making a gift or increase the amount you can afford.

LIFE INSURANCE

A simple way to make a significant future gift is to name CCHS as the beneficiary to receive all or a portion of the proceeds of a life insurance policy no longer needed for its original purpose.  You should discuss with your insurance agent how best to make such a gift.  Your agent will work with a financial council to meet your charitable giving goals.

RETIREMENT PLAN GIFTS

You may have accumulated funds in your company pension plan, IRA or other private retirement account which are beyond your needs or potentially subject to Federal Excise Tax on over-funded retirement plans.  It may be convenient and beneficial to make a current or future charitable gift the CCHS from those accounts. Your financial advisor can outline the tax advantages of this type of gifting.

CHARITABLE REMAINDER TRUSTS

You want to gift to CCHS, but are concerned about giving up control of the funds now and concerned you may need them at some point in the future.  Fortunately, there are vehicles your attorney can incorporate into your estate plan the allow you to gift property or assets now and obtain current income and estate tax benefits, while retaining the income fro the asset for life.  This is a Charitable Remainder Trust.

The CRT is a tax-exempt, irrevocable trust that allows a donor to make a current gift of cash or appreciated assets to a trust while retaining an income stream from the assets for his or her life. At the donor's death, the trust terminates and the donor can direct the appointed trustee to distribute the remaining trust assets to the charities of his or her choice.  The trust provides a current income tax deduction, and potential capital gains tax savings, as well as the potential for reduction or elimination of estate taxes.

Initially, to set up a CRT, you will work with an attorney to create and implement the trust.  Cash or appreciated assets are then transferred into the trust.  In most cases, the trust will name you, or you and your spouse as income beneficiaries, which means you will receive income for as long as you and/or your spouse live.  The trust will also name one or more qualified charities, selected by you, to receive the trust proceeds as remainder beneficiaries.  The trustee of the CRT has the authority to sell the appreciated assets within the trust for full market value.  If the trust is structured correctly, it will be tax-exempt and will not pay capital gains on the appreciation.  This allows more money to be put to work in the trust, potentially resulting in a larger income stream.  This income stream is received during the life of the designated beneficiaries.  When the designated beneficiaries pass on, the remaining assets in the trust are paid to the charities selected to receive the proceeds.

*Please note:  The above information provided above is only a sampling of opportunities available and is not intended to provide legal, tax or financial advice.  We encourage you to seek legal, tax and financial advice before entering into a planned gift arrangement with CCHS.