Make a Difference for the Bay

This is the most common way people provide for their loved ones in the future, but it can also be a thoughtful way to make charitable gifts. By having your attorney revise your will or add a simple amendment, you can provide for a gift of a specified amount or a gift of what remains after you provide for loved ones.

A living trust is a legal arrangement that allows a trustee to hold title to assets and manage them for beneficiaries. They have become a popular alternative to a last will and testament. A revocable living trust can both minimize the expense and delays of probate. Much like a charitable provision in a will, these gifts are tax-deductible and are designed to take effect only after first providing for your loved ones.

There are ways to give while enjoying an additional source of income for life or other period of time. Generous payments based on your age or a pre-determined payout can be a welcome supplement to your retirement income. When the payments end, funds that remain are given to your beneficiaries. You may also realize capital gains and other tax savings as well.

If you wish to make a gift over time, for which assets will ultimately be returned to you or your loved ones, you may be interested in a charitable lead trust. Under the terms of this gift, assets are transferred to a trust that makes payments to beneficiaries for a number of years that you choose. At the end of that period, assets are transferred to those you name. This can be an effective way to control when an inheritance will be received while lowering or eliminating gift or estate taxes.

Your need for life insurance may change over time. Insurance policies that you originally purchased for additional income or payment of taxes may instead be used for other purposes. You can name a beneficiary to receive all or a portion of the proceeds of a policy. Or you may wish to make a gift today of a policy you no longer need and perhaps benefit from immediate tax savings. In either case, future premiums can be tax-deductible.

Funds remaining in your retirement plans can be subject to taxes, so it can be wise to make gifts from these accounts while leaving other assets to loved ones. Whether you participate in a company plan or have an individual retirement plan, you may have more funds than you need. In that case, it may be convenient to make a charitable gift from retirement assets. If you are over age 70 and 1/2 you can also make a lifetime gift of up to $100,000 per year from your IRA. This gift qualifies as part of your Minimum Required Distribution if one is required.