There is a simple way to make a lasting impact on the lives of the homeless animals in our community. Add a gift to the Peninsula SPCA to your estate plan or name the Peninsula SPCA as a beneficiary to your retirement plan. Your thoughtful gift will guarantee a future for our animals and can provide you with tax benefits. Discuss your options with your financial planner, attorney and other advisers to find out how you can benefit along with the animals at the Peninsula SPCA.
Give to the Peninsula SPCA by leaving a portion of your estate to the Peninsula SPCA in your Will or living trust, and you will make an impact the lives of homeless animals on the Peninsula. The law permits several different types of bequests, and a donor can choose one that best fits the donor’s plan.
- A General Bequest leaves a charity a specified dollar amount
- A Special Bequest leaves a charity a specific piece of property
- A Residual Bequest leaves all or a portion of an estate or trust fund to the charity after expenses are paid
Bequests can provide both estate tax and income tax benefits to a donor’s estate.
Name the Peninsula SPCA as a beneficiary of a retirement plan, such as an IRA, 401(k) or 403(b). This gift makes a lasting impact on the lives of the homeless animals on the Peninsula that could be taxed if given to a loved one.
In January 2013, Congress reinstated the IRA charitable rollover through December 31, 2013. Under the IRA charitable rollover, an individual 70 ½ or older can donate up to $100,000 a year from the individual’s IRA as a tax-free distribution to a tax-exempt organization.
Make the Peninsula SPCA the owner and/or beneficiary of a life insurance policy. Lifetime gifts of the policy to the Peninsula SPCA can provide current federal income tax benefits. Designating the Peninsula SPCA as a beneficiary of a life insurance policy can provide tax benefits to the donor’s estate.
Irrevocable Trust Gift
Designate the Peninsula SPCA in your irrevocable trust and receive current tax benefits. Tax-advantaged charitable trusts include the Charitable Remainder Trust and Charitable Lead Trust.
Charitable Remainder Trust
A charitable remainder trust (CRT) allows you realize the tax advantages of making a charitable gift now while receiving income from the donated asset as a beneficiary of the CRT. After providing income to the donor or other named trust beneficiary, the remaining assets held in trust will be transferred to a named charitable beneficiary upon the trust’s termination (generally either the life of the donor or a fixed number of years).
There are two types of CRTs: Unitrusts and annuity trusts. In both cases, the term may be for life or a period of years up to a maximum of 20 years. The minimum annual percentage payout is 5% of the trust assets.
Charitable Lead Trust
A Charitable Lead Trust (CLT) distributes income to your charitable fund for a period of years or during your lifetime. Then the assets return to you or surviving family members. The CLT reduces the estate tax liability of the donor. A properly drafted CLT can allow you to make a significant gift to charity and transfer assets to family members with little or no gift and estate tax consequences.