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Planned Gifts

 

During this time of global financial and economic insecurity, planned gifts can be a way for loyal friends to provide significant support assuring Union's future growth and vibrancy. There are many ways to consider giving to Union, including bequests, annuities, life insurance, and trusts. As always, consult your financial advisor to determine how this sort of charitable gift will impact your estate plans.

Bequest


A gift to Union in your will that does not affect your cash flow during your lifetime.

How it works:

  • You make a bequest to Union in your will or revocable trust.
  • Union receives your gift at the time of your passing.

Benefits:

  • A bequest is the simplest form of planned giving. It can be a specific dollar amount, a percentage of your estate, a specific item or a specific piece of property.
  • Your estate will receive a tax deduction for the value of your gift to Union.
  • You retain possession of your assets during your lifetime, and can make changes to your bequest.

Charitable Gift Annuity


There are two possibilities: An immediate charitable gift annuity allows you to receive a fixed payout each year with significant tax benefits. A deferred charitable gift annuity enables younger donors to build retirement earnings for the future.

How it works:

  • You contribute cash or other property to Union.
  • Union pays you a specified amount each year for the rest of your life (an annuity).
  • The remainder becomes Union’s asset upon your passing.

Benefits:

  • You receive an immediate income tax deduction for a portion of your gift.
  • Your annual payments are treated as part ordinary income, part capital gains income, and part tax-free income.
  • Your annuity can be set up for two lives, such as for you and a spouse, instead of just one.
  • Like an Individual Retirement Account, a gift annuity can be set up so the payment of the annuity is deferred to a future year.

Charitable Remainder Trusts


Your gift is placed into a trust, and Union makes fixed annual payments to your or designated beneficiaries. Or, the trust can pay a percentage of its principal, which is re-valued each year. In either case, when the trust terminates, Union receives the remaining principal.

How it works:

  • You contribute cash, securities, or other appreciated property into a trust.
  • The trustee makes annual payments to you or beneficiaries you name.
  • When the trust terminates, the remaining property passes to Union.

Benefits:

  • You are entitled to a current income tax deduction for a portion of your trust contribution.
  • You can contribute appreciated assets with low yield to the trust, which can then be sold and reinvested. Doing this, you may receive a higher payout without loss due to capital gains tax on the assets.
  • The annual payments can be a fixed amount, or they can come in the form of a fixed percentage of trust assets valued annually.
  • You or your beneficiaries receive stable, predictable income for life or a term of years.

Charitable Lead Trusts


This trust pays income to Union for a fixed period of time. The trust principle then reverts to the donors or their heirs.

How it works:

  • You contribute cash, securities, or other appreciated property to a charitable lead trust.
  • The trust makes annual payments to Union for a fixed number of years.
  • When the trust terminates, the remaining principal transfers to your beneficiaries – usually children, grandchildren, or trusts for them.

Benefits:

  • Charitable lead trusts can be excellent vehicles to negotiate gift or estate tax liabilities.
  • Appreciation of the trust is enjoyed tax-free by your beneficiaries.
  • The amount and period of payments to Union can be arranged to reduce or eliminate transfer taxes when the principal transfers to your beneficiaries.

Retained Life Estate


Receive a significant deduction by donating a residence while you retain the right to live there for life.

How it works:

  • You donate a residential property to Union, with the right to live there for life.
  • You continue to be responsible for all taxes and maintenance costs.
  • Property ownership transfers to Union upon your passing.

Benefits:

  • You enjoy an immediate income tax deduction for a portion of your property’s value.
  • You can relinquish your right to live in the property at any time and enjoy an additional tax deduction.

Pooled Income Funds


This is similar to a mutual fund that accepts gifts from many donors, manages them, and distributes earnings of the fund to you or designated beneficiaries during their lifetime.

How it works:

  • You make a contribution to one of Union’s pooled income funds.
  • You or your beneficiaries are entitled to receive a share of income generated by the fund.
  • When you or your beneficiaries pass on, Union receives your contribution.

Benefits:

  • You receive immediate credit for your gift and its corresponding tax benefits.
  • You don’t have to pay capital gains tax on any appreciated assets that you donate.
  • Your share of the fund income can exceed the dividends you were receiving on the securities you donated.

Lifetime Gifts of Insurance


Transfer ownership of a paid-up life insurance policy to Union. You receive an immediate tax credit for the cash surrender value of the policy without adversely affecting

How it works:

  • You can name Union as the beneficiary on your life insurance policy.
  • You keep the policy in force and Union receives your gift when the policy matures.
  • Or, if the policy is not to be kept in force, Union can cash in the policy.

Benefits:

  • If the policy has a cash surrender value, you can take an income tax deduction for the value of the policy.
  • If you keep the policy in force with Union named as a beneficiary, you can take an income tax deduction for the premiums.

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