There are a number of ways to meet your goals philanthropically, each with their own implications on your family and taxes. We are happy to talk through your ideas and goals to help create a strategy that maximizes all opportunities.
1. Outright gift of securities –
Provide immediate benefit to Kosair Charities by gifting stocks that have been held for more than a year and have a current value greater than their original cost. You will qualify for a current income tax deduction and receive relief from capital gains tax.
2. Gift in will or trust –
Designate Kosair Charities as a beneficiary in your will or trust and commit to our cause while avoiding estate tax. This is the most flexible type of planned gift and you may change your mind at any time.
3. Life insurance –
Gift your life insurance policy to Kosair Charities without disclosing it in your will. This allows you to make a large gift without affecting the assets you’ve accumulated to pass on to your loved ones. This option also provides an income tax deduction in the amount of the policy’s fair market value, and reduces the size of the taxable estate.
4. Charitable gift annuity –
Contribute an asset to Kosair Charities in exchanges for the promise of lifetime fixed payments for you or someone you select. Funds remaining after a lifetime of payments to the beneficiary will go to support Kosair Charities. You will also be eligible for an income tax deduction and capital gains tax avoidance by giving rather than selling, these assets.
5. Charitable remainder trust (CRT) –
Transfer your assets to a CRT to receive a fixed or variable dollar amount – depending on whether you choose a unitrust or annuity trust, respectively – each year for the rest of your life or a term of up to 20 years. Avoid capital gains taxes on the sale of your appreciated asset and receive an income tax deduction for the charitable portion of the trust. You can receive income to the extent that the trust has assets to pay out. This also shrinks the size of your taxable estate.
6. Savings bonds –
Leave your savings bonds to Kosair Charities to avoid paying income taxes on the deferred interest.
7. Retirement plan or IRA assets –
Leave your IRA or other assets to Kosair Charities in your retirement plan. We will receive all that is left of your retirement plan or IRA, whereas your loved ones will be exposed to income taxes as they access those funds at income tax rates.
8. Charitable lead trust (CLT) –
Transfer your assets to a CLT (the inverse of a Charitable Remainder Trust) to receive a gift or estate deduction for the present value of the charitable interest. This deduction allows you to pass on significant assets to family at a reduced gift or estate tax cost. There are various forms of a CLT, some of which provide additional tax benefits to you. Your tax professional can assist you in choosing the right vehicle for your goals.
9. Gift of real estate –
Gift appreciated property to Kosair Charities to qualify for a tax deduction and capital gains tax avoidance. Gifts of real estate can also be made through your will or living trust.