A planned gift is generally considered to be a gift that is arranged during your client’s lifetime that comes to fruition in the future. Planned gifts are a way to ensure your client creates the charitable legacy desired, even if those plans can’t be implemented until later.
A Gift in Your Client’s Will or Trust
The most common form of planned giving is a charitable bequest in a will or trust. This bequest can create or add to an existing fund, such as a Designated Fund to benefit a specific charitable organization or a Field of Interest Fund to address a particular cause. Your client can also leave a bequest to an Unrestricted Fund for Cobb Community Foundation to deploy based on the most critical needs that exist at the time. Your client’s bequest can be a specific amount, a percentage of your client’s estate or even the residual balance of the estate after all other bequests have been made. Contact us for assistance with the appropriate language for your client’s estate planning documents.
A Gift of Retirement Funds
Perhaps the most tax advantageous bequest, and in some ways the simplest, is to name Cobb Community Foundation as the beneficiary of your client’s IRA, 401(k) or 403(b). Retirement benefits are usually taxed as ordinary income upon distribution to a beneficiary. As a public charity, however, Cobb Community Foundation generally does not pay income tax. A gift of retirement assets may only be worth 60-80% of their value to individual beneficiaries on an after-tax basis, but public charities can enjoy 100% of the value.
A Gift of Life Insurance
As with your client’s retirement funds, his or her life insurance beneficiary designation determines who will ultimately receive the life insurance proceeds. Your client can designate the Cobb Community Foundation as the beneficiary of all or even just a portion of the life insurance.
Charitable Remainder Trust
A Charitable Remainder Trust can be an ideal solution for the individual or couple who have a need for current income, or want to provide someone else with current income, but want the balance remaining upon their passing or after a designated time period to be paid to a charitable organization. A Charitable Remainder Trust also provides your client with an immediate tax deduction and allows your client to avoid capital gains taxes on the assets contributed to the trust. Your client or the trust’s current beneficiary can receive either a fixed dollar amount every year or a certain percentage of the trust’s assets each year.
We encourage donors to work not only with their professional advisors as they develop their charitable giving plans, but also their estate planning and tax advisors as they consider which planned gift is best for them. Help your client start their legacy. Contact us at CCFTeam@cobbfoundation.org or 770-859-2366.