3 Tools & 3 Techniques in PG Estate Planning Council of SW - - PowerPoint PPT Presentation

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3 tools 3 techniques in pg estate planning council of sw
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3 Tools & 3 Techniques in PG Estate Planning Council of SW - - PowerPoint PPT Presentation

Jan 10, 2024 239 likes •463 views

3 Tools & 3 Techniques in PG Estate Planning Council of SW Washington (sponsored by the Clark College Foundation) October 2015 Three Main Tools in Planned Giving NUMBER #1: THE BEQUEST! Can Be a Specific Dollar Amount (not common)

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Estate Planning Council of SW Washington

(sponsored by the Clark College Foundation) October 2015

3 Tools & 3 Techniques in PG

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NUMBER #1: THE BEQUEST!

  • Can Be a Specific Dollar Amount (not common)
  • Percentage of the Estate (most common)
  • Specific Asset
  • Contingent Beneficiary

Three Main Tools in Planned Giving…

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ADVANTAGES WITH BEQUESTS:

  • Requires No Administration!
  • Young and Old 501(c)(3)s Can Promote
  • Inexpensive To Promote
  • Easy to Thank People For (cert., wall & meal)
  • EVERYONE Can Participate!

Three Main Tools in Planned Giving…

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Questions

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Comments?

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NUMBER #2: THE GIFT ANNUITY!

  • Tried and True Technique—ABS in 1843
  • Simple Agreement—Typically No JDs Required
  • WA State Law Requirements
  • Need Software to do Calculations

Three Main Tools in Planned Giving…

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NUMBER #2: GIFT ANNUITY CONTINUED…

  • Investment and Administration Services Needed
  • Typically Funded With Cash or Stock
  • Sometimes Real Estate Can Work!

Three Main Tools in Planned Giving…

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NUMBER #2: TYPES OF GIFT ANNUITIES…

  • Current/Immediate Payments (most common)
  • Deferred Payment (less common)
  • Fixed Start Date
  • Elective Start Date

Three Main Tools in Planned Giving…

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NUMBER #2: GIFT ANNUITY PAYMENTS

  • Cash Funded—Mostly Tax-Free Income
  • Stock Funded—Mostly Capital Gain Income

Three Main Tools in Planned Giving…

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Three Main Tools in Planned Giving…

ADVANTAGES WITH GIFT ANNUITIES:

  • Simple Agreement—Typically no JD Required
  • Great Return for Donors in Down Market
  • Once Established, “Auto Pilot” to Manage
  • Washington Program Requirements
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Three Main Tools in Planned Giving…

DISADVANTAGE WITH GIFT ANNUITIES:

  • MUST Pay Fixed Rate Regardless of Markets
  • MUST Establish Consistent Administration

Three Main Tools in Planned Giving…

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Questions

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Comments?

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Three Main Tools in Planned Giving…

NUMBER #3: THE CHARITABLE TRUST!

  • Tax Reform Act of 1969
  • Every CRT is Different!
  • Requires “Art of the Deal” Expertise

Three Main Tools in Planned Giving…

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Three Main Tools in Planned Giving…

NUMBER #3: TYPES OF CRTs:

  • The Standard Payout CRT (aka CRUT)
  • The Annuity Payout CRT (aka CRAT)
  • NIMCRUTS (type I and type II)
  • The “FLIP” Trust

Three Main Tools in Planned Giving…

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Three Main Tools in Planned Giving…

ADVANTAGES WITH CRTS:

  • Allows Potentially 5 Favorable Tax Outcomes…
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Three Main Tools in Planned Giving…

ADVANTAGES WITH CRTS:

  • Allows Potentially 5 Favorable Tax Outcomes
  • Typically Allows for LARGE Gifts to be Made
  • “Sexy” to Promote and Talk about!
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Three Main Tools in Planned Giving…

POTENTIAL DISADVANTAGES WITH CRTs:

  • Requires Experienced Attorney—SORRY!
  • Helps if Charity can Help
  • Requires “Tons” of Paperwork
  • Trustee Must Understand Role
  • Administration Must be Impeccable
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Questions

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Comments?

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Contact Information Gene Christian direct: 503-936-5350 360-992-2542 gene@cepnw.com Clark College Foundation 1933 Fort Vancouver Way Vancouver, WA 98663-3598 360-992-2301 www.clarkgift.org

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Thank You for

Attending this Session Today!