Charitable Lead Trust
A Charitable Lead Trust enables your client to make significant charitable gifts now while transferring substantial assets to beneficiaries later. A trust is set up from which the Community Foundation receives annual payments for your client's life or for a specified number of years. These funds may be used to support charities your client specifies or be added to an Advised Fund. When the trust terminates, the trust principal is returned to your client or distributed to their children or others they designate. The trust assets pass to the recipients at reduced tax cost–sometimes even tax free.
Retained Life Estate
Your client can turn their property's value into community good–while receiving financial and tax benefits–by making a charitable gift of real estate through the Kalamazoo Community Foundation. Your client can continue to live in and fully enjoy their home (or vacation property) as long as they like while still giving the future ownership of it to the Community Foundation. This is called a Retained Life Estate. The gift of the "remainder interest" is a charitable contribution in the year the gift arrangement is made, which may result in a substantial income tax charitable deduction. When the life tenancy terminates, the Community Foundation becomes the owner of the property. The proceeds of the property's sale will go into the fund your client establishes at the Community Foundation, or one or more permanent charitable funds already established at the Community Foundation.
To learn more about either of these tax-wise giving options, email the Community Foundation or call (269) 381-4416. |
