This is a simple way to make a lasting gift through your will or trust. It is revocable and doesn’t take any current assets from your net worth. A bequest can be:
- Specific dollar amount
- Percentage bequest
- Residuary bequest
- Contingent bequest
These are assets in your retirement plans or life insurance policies. With bequest alternatives, you don’t have to amend your trust or write a codicil to your will. It is easy to change the beneficiary of an IRA, other retirement plan, and your life insurance. You just contact the plan administrator and ask to change the beneficiary designation form. Retirement assets are the single most highly taxed asset and good for charitable gifting.
With life insurance policies – you can:
1. name the Community Foundation as a full or partial beneficiary (can be revoked), or
2. name the Community Foundation as the owner (irrevocable gift and also tax deductible).
Life Income Gift: Charitable Gift Annuity
You make a gift to the Community Foundation and receive fixed payouts for life regardless of market fluctuations with the knowledge that the full assets of the Community Foundation stand behind the gift. You can help fund the causes you care about most, while turning a low-performing asset into a reliable life-income stream.
Life Income Gift: Charitable Remainder Trust
You can place assets in a trust that pays annual income to you (or another named beneficiary) for life or no more than 20 years. After your lifetime or a term of years, the remainder of the trust can be transferred to a Community Foundation charitable fund.