EASING INTO PLANNED GIVING Jane Peebles, J.D.
Bequest Percentage,
fraction or dollar
amount Check legal name Specific purpose or without restrictions 100% estate tax deduction
1
Retirement Plans and IRAs Change
beneficiary designation Percentage or fraction No estate or income tax Qualified Charitable Distribution
2
Life Insurance Policy No
longer needed Paid up or pay premiums Charity owns and is beneficiary
3
Donor Advised Fund Giving
account established at a public charity Immediate income tax deduction
4
Donor Advised Fund (cont’d) No
mandatory payout DAF sponsor handles all compliance You and/or family recommend grants
5
Donor Advised Fund (cont’d)
Who
will be successor advisors for the fund? Leave
a list – guide for successor advisor or DAF sponsor
6
Gift of Residence When You’re Gone Immediate
income tax deduction Remain in your home for life Charity gets house when you die
7
Charitable Remainder Trust/Life Income Trust Pays
income for life or up to 20 years To charity when you die Immediate income tax deduction
8
Charitable Remainder Trust/Life Income Trust (cont’d) CRT
is tax-exempt and can sell appreciated asset free of capital gains taxes. You pay capital gains taxes over many years. Great for real estate. May increase cash flow Replace value for heirs Benefits family and charity 9
Charitable Lead Trust
Pays income to charity for your life or a fixed number of years.
Can use immediate income tax deduction to offset gains from a sale with immediate tax deduction.
Can use to benefit children/grandchildren when charitable payments cease AT NO GIFT TAX COST.
Benefits charity and family 10
Pooled Income Fund Contributions
from many donors Held in single fund Donor gets all income for life from donor’s pro-rata share, then to the charity Immediate income tax deduction 11
Charitable Gift Annuity Donate
asset to charity Charity pays donor or other person annuity for life Charity keeps the asset when you die Retirees like reliable income 12
Private Family Foundation Immediate
income tax deduction Family controls Foundation mainly makes grants to public charities
13
Private Family Foundation (cont’d) Founded
by individual or family Appeals to donors who want to maintain control Ongoing costs and compliance
14
Private Operating Foundation Founded
by individual or family Income tax deduction Directly carries out charitable projects Appeals to visionary founders
15
Income Tax Charitable Deductions Limitations on how much you can deduct: DAF
Private Foundation
Operating Foundation
Public Charity
Cash
60% AGI
30% AGI
60% AGI
100% AGI
Appreciated Publicly Traded Stock
50% AGI
20% AGI
50% AGI
60% AGI
FMV
FMV
FMV
FMV
Other Appreciated Assets
30% AGI
20% AGI
30% AGI
30% AGI
FMV
Cost Basis
FMV
FMV
Carry Forward
5 years
5 years
5 years
5 years
None
5% of investment assets
3.3% of investment assets
None
Mandatory Payout
16
Jane Peebles, J.D. Partner Karlin & Peebles, LLP 5900 Wilshire Blvd., Ste. 500 Los Angeles, CA 90036 jpeebles@karlinpeebles.com (323) 852-0030
Jane Peebles is an attorney at Karlin & Peebles, LLP in Los Angeles. She has specialized in U.S. and international charitable planning and fundraising for 35 years. Jane loves educating others about planned giving and is proud of her ability to convey advice about charitable giving in plain English. She is a good listener and quick to identify what strategies will help her philanthropic and nonprofit clients best meet their goals. She is a long-time Liberty Hill supporter and was on its Board for 12 years. 17
Next Steps for Leaving A Legacy
★ Consider drafting an Ethical Will: Create a personal document that complements your legal will and captures your values, life lessons, and the impact you would like to see continue through your bequests. ★ Write it down! Name the organizations for your bequests. Next, make it legal. ★ Reach out to Jane Peebles at Karlin & Peebles: jpeebles@karlinpeebles.com (323)852-0030 ★ Reach out to Shelley Kennedy, Senior Philanthropy Advisor, to place bequests in your DAF record or to update your Successor Advisor: skennedy@libertyhill.org ★ Learn more about Liberty Hill’s Circle of Angels to make a planned gift to Liberty Hill: https://www.libertyhill.org/what-we-do/donor-services/planned-giving/ or contact Shelley Kennedy to join (skennedy@libertyhill.org) https://www.libertyhill.org/what-we-do/donor-services/planned-giving/