PLANNED GIVING OPTIONS:
WHAT CAN I GIVE?
Bequests are one of the easiest ways to make a gift to the Southeast Alaska Land Trust. A bequest is a provision in your will or living trust. It directs money, stock, or other property to specified individuals or charitable organizations upon your passing. Unlike some other planned giving options, bequests are revocable, meaning they allow you to change your mind at any time. Property left to charities, such as SEAL Trust, is deductible from your taxable estate and may result in substantial tax savings. Bequests can also be used to endow your annual support for SEAL Trust and help our conservation efforts far into the future.
Regardless of age or marital status, this is an easy and meaningful way to make a planned gift. With an IRA, you can readily name any beneficiaries you want, including friends, family members, a trust or charity like SEAL Trust. For a 401(k) or other workplace plan, you must get your spouse’s written permission to leave it to anyone else. For either, you can easily change a beneficiary at any time. A charitable designation to SEAL Trust through your retirement accounts may provide the greatest tax benefit for your heirs, while helping secure the future of Alaska’s most special land and waterways.
CHARITABLE GIFT ANNUITY
In a charitable gift annuity, a donor agrees to irrevocably transfer money or property to charity, and the charity agrees to make regular fixed annuity payments to one or two beneficiaries specified for life. If the land trust agrees to accept the unrestricted property, then it might sell the land subject to a conservation easement to generate the proceeds needed to make the annuity payments. The gift usually qualifies for a charitable income tax deduction at the time of the gift, based on the value of the assets less the expected value of the annuity payments.
CHARITABLE REMAINDER UNITRUST
Under a charitable remainder unitrust, a donor irrevocably transfers money, property, or both to a financial trust with the stipulation that funds in the trust will go to the Southeast Alaska Land Trust at the end of a specified term. If the property has conservation value, then a conservation easement can be conveyed before being put into the charitable remainder unitrust. The trustee (financial trust) sells the land and invests the net proceeds from the sale. One or more beneficiaries specified receive annual payments based on a percentage for a fixed term or for life, then the trustee turns the remaining funds in the trust over to the land trust. The gift qualifies for a charitable income tax deduction when the assets are put in the trust based on the value of the assets less the expected value of the payments.
CHARITABLE LEAD TRUST
A charitable lead trust operates conversely to a charitable remainder trust by providing a stream of income for a specified period of time to Southeast Alaska Land Trust. A donor transfers money, property, or both to an irrevocable trust. The trust is managed by a financial professional and payments are made to the charity for a term or year or life. At the end of the trust term, the assets in the trust either revert to the donor or pass to the donor’s family members or other beneficiaries. A charitable lead trust can provide both the gift and estate tax deductions and can offer savings of capital gains taxes when the trust sells appreciated assets.
POOLED INCOME FUND
In a pooled income fund, a donor transfers money or securities to the Southeast Alaska Land Trust. The gift is pooled with those of other donors who make similar gifts, and then invested. Each donor receives a pro rata share of the income fund’s dividends and interest earnings every year for life. The income is taxed as ordinary income to the beneficiaries. When a beneficiary dies, the Southeast Alaska Land Trust removes assets from the fund equal to the beneficiary’s share of the fund and uses them for conservation purposes.
If you would like to discuss any of these options, please don’t hesitate to email us at firstname.lastname@example.org, or call us at (907) 586-3100.
Gifts of any type are welcome and make a difference!
THANK YOU for supporting land conservation in Southeast Alaska!