Supporting the Housing Foundation: Connecting with the future
Make a Planned or Deferred Gift
Planned, or deferred, gifts can provide significant benefits to you and your loved ones now and in the future, while offering financial support for the
Housing Foundation's mission for many years to come.
Some popular planned giving vehicles include:
The Housing Foundation will work with you and your financial advisors to create a gift plan that works for you.
For more information, please contact the Planned Giving Committee by telephone at (831) 464-2000, or by email at
hf@scaor.org.
Gift Planning Vehicles
Bequest
A bequest, under a will or revocable living trust, is the most frequently made type of planned gift. It is simple to prepare, revocable, and can
be accomplished in several ways. To make a bequest to the Housing Foundation, you may:
- Specify a monetary gift or make a gift of securities, real estate, or other items of value
- Designate a percentage of your total estate to be given to the Housing Foundation.
- Contribute to the Housing Foundation that portion of your estate which remains after all other bequests are satisfied.
By naming the Housing Foundation in your will or revocable living trust, you are making an enduring contribution to the Housing Foundation's mission.
The gift of a bequest costs nothing now, yet it provides a great measure of satisfaction in knowing that you are creating a legacy that will live on for generations.
For more information, please contact the Planned Giving Committee, by telephone at (831) 464-2000, or by email at
hf@scaor.org.
Every gift matters. Make yours today.
Gift of Retirement Assets
Retirement assets are among the best assets for making a planned gift.
By designating that all or a portion of your retirement plan will be gifted to the Housing Foundation at the end of your
lifetime, you retain control of the fund and are able to utilize it while you are living. Also, your heirs avoid paying income
tax on the transfer of the retirement asset.
Without gifting, the assets in qualified retirement plans, such as IRAs, 401(K)s, and Keogh accounts, may be subject to heavy
taxation-as much as 40 percent or more. For more information, please contact the Planned Giving Committee, by telephone at (831)
464-2000, or by email at hf@scaor.org.
Every gift matters. Make yours today.
Gift of Life Insurance
Individuals sometimes conclude that they have more life insurance than they or their family needs. In this circumstance, you may wish to:
- Name the Housing Foundation as a beneficiary of an existing policy.
- Transfer the policy, naming the Housing Foundation as the owner and beneficiary, which will result in a tax deductible gift
as permitted by Section 170 of the Internal Revenue Code.
- Purchase a new policy of life insurance, and name the Housing Foundation as the owner and beneficiary. For premiums
due on the policy, you may make annual gifts to the Housing Foundation, which are tax deductible.
For more information, please contact the Planned Giving Committee, by telephone at (831) 464-2000, or by email at
hf@scaor.org.
Every gift matters. Make yours today.
Charitable Gift Annuity
A charitable gift annuity is a contract between you and the Housing Foundation that provides for scheduled annuity payments by the Housing Foundation
to you from income generated from the principal amount of a gift you've made to the Housing Foundation. Three factors govern payments:
- The amount of the gift
- The age of the income recipient(s)
- The gift annuity rate
To establish a charitable gift annuity with the Housing Foundation, there are several considerations including a minimum amount of
the gift and minimum age
of the recipient (70 years of age). Payments would be made quarterly, and a portion of the payments may be tax free.
For tax purposes, you should consider funding a charitable gift annuity with appreciated marketable securities, the direct sale of which would cause the
recognition of long term capital gains taxes by you. For more information, please contact the Planned Giving Committee,
by telephone at (831) 464-2000, or by email at hf@scaor.org.
Every gift matters. Make yours today.
Deferred Gift Annuity
A deferred gift annuity is a charitable gift annuity established prior to the income beneficiary's 70th birthday.
This allows for significant current and future tax and financial benefits, including higher payments to the beneficiary
because of the delay in making the income distributions. At the Housing Foundation you may establish a deferred gift annuity
with a minimum charitable contribution determined in consultation with the the Planned Giving Committee.
The Planned Giving Committee can prepare a customized gift annuity proposal for your consideration. For more information,
please contact the Planned Giving Committee, by telephone at (831) 464-2000, or by email at hf@scaor.org.
Every gift matters. Make yours today.
Charitable Remainder Annuity Trust
A charitable remainder annuity trust can be used as a sophisticated technique in structuring the sale of highly appreciated assets, such as publicly traded securities, real estate, and similar assets, while forming one of the building blocks of the donor's estate plan. This technique can be used to avoid capital gains taxes, depreciation recapture in the case of real estate, to generate a stream of income for the donor's retirement years, and provides the donor with a charitable income tax deduction in the year of the transfer. The charitable remainder annuity trust can also be an important method for reducing estate taxes, and conferring a final and enduring charitable benefit on the community..
A charitable remainder annuity trust is an irrevocable trust-a separate tax entity-which returns a stream of income to the donor or other specified beneficiary for life or for a period not to exceed 20 years. Such payments are usually made on a quarterly basis. The percentage of the trust payout is fixed at not less than 5 percent of the fair market value of the assets at the creation of the creation of the trust. Once established, no additional gifts may be made to the charitable remainder annuity trust.
For those who prefer fixed payments, a charitable remainder annuity trust may be an attractive option. For more information, please
contact the Planned Giving Committee, by telephone at (831) 464-2000, or by email at hf@scaor.org.
Every gift matters. Make yours today.
Charitable Remainder Unitrust
A charitable remainder unitrust is another sophisticated tool for use in structuring the sale of highly appreciated assets,
such as publicly traded securities, real estate, and other assets. The benefits from use of this technique include avoidance
of capital gains taxes, and in the case of real estate avoiding taxes on the recapture of former depreciation deductions.
The charitable remainder unitrust is designed to also produce a stream of income to the donor or other beneficiary, a charitable
income tax deduction in the year of transfer, and may reduce potential estate taxes. Finally, on passing the donor confers an
enduring benefit on the community through the Housing Foundation's receipt of the remainder interest in the assets held in the charitable
remainder unitrust.
A charitable remainder unitrust is an irrevocable trust, wherein the income payouts are based on a percentage, not less than five
percent, of the trust's assets as valued annually. The payout percentage must be set at the creation of the trust.
Because a charitable remainder unitrust is a exempt, the capital gains tax is bypassed if appreciated assets, such as publicly traded
securities or real estate, are contributed to the trust instead of being sold directly by the potential donor. Unlike a charitable
remainder annuity trust, additional gifts can be made to a unitrust at any time.
For those who prefer the potential of higher payments based on the annual valuation of the trust, a charitable remainder unitrust may
be an attractive option. For more information, please contact the Planned Giving Committee, by telephone at (831) 464-2000, or by
email at hf@scaor.org.
Every gift matters. Make yours today.
Charitable Lead Trust
The charitable lead trust is essentially the opposite of the charitable remainder trust. In the charitable lead trust the charity does not receive the remainder interest in the assets held in trust on the passing of the donor. Instead it receives the income generated by the invested proceeds from sale of a highly appreciated asset during the donor's lifetime or for a period of years. On the passing of the donor, the principal amount of the assets held in trust will be distributed to the beneficiaries previously designated by the donor. The charitable lead trust can be used to avoid capital gains taxes at the time the transferred property is sold to its buyer, and provides the donor with a charitable income tax deduction in accordance with the provisions of Section 170 of the Internal Revenue Code.
The charitable lead trust is an irrevocable trust that may appeal to a person who does not need current income from an appreciated asset,
who wants to benefit charity, but who wants his or her beneficiaries to ultimately receive the full benefit of the remainder interest in
trust assets. For more information, please contact the Planned Giving Committee, by telephone at (831) 464-2000, or by email at
hf@scaor.org.
Every gift matters. Make yours today.
|
|
