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The ABCs of Planned Gifts

A planned gift, as its name suggests, requires planning, and that planning is usually tax planning. The term includes several types of gifts, one of which is the donation of an asset in exchange for an income, usually provided after the asset is put into a charitable trust. At some point, not necessarily immediately, a charitable organization like Sisters Hospital Foundation receives the asset. In other words, the donor parts with the asset today to receive the income and tax benefits, while the actual gift of the asset to The Foundation is deferred for a period of time, often the lifetime of the donor.

Planned Gifts That Pay
In the context we have established here, a planned gift can include a "life income gift" because you receive an income from the donated assets, in many cases for the rest of your life. Here are two types of life income gifts:

Charitable Remainder Annuity Trust
You place assets into a trust (usually a minimum of $100,000) from which you receive a life income at a fixed amount. After your lifetime, and the lifetime of a surviving beneficiary, if desired, the trust remainder goes to The Foundation.
Charitable Remainder Unitrust
This works like an annuity trust, except that the income you receive varies each year based on a set percentage of the value of the trust assets, redetermined each year.

Calculate how a charitable remainder annuity trust can benefit you.

Calculate how a charitable remainder unitrust can benefit you.

Consult the Experts
The use of gift planning techniques has grown dramatically over the past 20 years, benefiting thousands of charitable organizations, such as Sisters Hospital Foundation. Each type of planned gift carries its own complexities, which are best negotiated by an experienced professional.

To learn more about which gift vehicle would best suit your situation, please contact us at 716-862-1992 or, via e-mail at jsnyder@chsbuffalo.org, for a no-obligation consultation. We would be happy to meet with you and your financial, tax or legal advisors to determine a plan that works for you.

The information in this Web site is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income tax include federal taxes only. Individual state taxes and/or state law may impact your results.