Walloon Lake Trust and Conservancy and your personal financial plan.
Have you considered the Walloon Lake Trust and Conservancy (WLTC) when addressing estate planning? The options available include gifts now or upon your death and include the possibility of saving on taxes and earning income during your lifetime. Your personal plan should be formulated by professionals.
Gift cash, land, or appreciated securities
Gifts to the WLTC are tax deductible. Contact your tax advisor for current laws and policies that might apply to your own situation.
Your will, or living trust
Designating a gift to the WLTC may reduce taxes on your estate.
Charitable gift annuity
With a charitable gift annuity, you can make a gift now, receive a partial tax benefit now, and receive interest at above CD or money market rates for the rest of your life or your spouse’s life on your gift. This gift may be from appreciated stock or IRA distributions, which may reduce income taxes. This annuity also removes assets from your estate. A simple, one page form will complete the gift process. Payout rates, effective January 1, 2012, for a single-life annuity are 5.1% for a 70 year old and 6.8% for an 80 year old person. Upon your death, or the death of your spouse, the remainder of the annuity will go into a fund to benefit the WLTC. The manager of the assets of the Charitable Gift Annuity can be the Petoskey-Harbor Springs Area Community Foundation.
Charitable Remainder Trust
Your tax attorney can assist you in setting up this instrument which provides you income for life and a partial tax deduction at the time of the gift. It is similar in many respects to a Charitable Gift Annuity, except that you select the trust financial manager. You can act as trustee of the trust. If the WLTC is named as beneficiary of the trust, WLTC receives the proceeds on your death or the death of your spouse. This option is appropriate for large gifts only.
Charitable Lead Trust
Your tax attorney can assist you in setting up this instrument which provides income to WLTC for your lifetime. Upon your death, or your spouse’s death, the remainder of the trust goes to a beneficiary of your choice, including relatives. With careful planning, you may substantially reduce, or even eliminate, estate and gift taxes. Also, all appreciation in the value of the trust properties occurring after funding the trust may be completely free of gift and estate taxes. This option is appropriate for large gifts only.
You can establish a private foundation that may reduce your taxes and allow you and your family to give charitable gifts in the future to charitable organizations of our choosing. This option is most appropriate for large gifts.
Donor Advised Funds
You may establish a Donor Advised Fund through a financial investment firm of your choice or through your Community Foundation. You receive a tax deduction upon formation of the fund and you advise the Administrator regarding grants from the fund. The Donor Advised Fund is a tax-wise gift and a flexible tool for giving.
Life Insurance Policy?
You can name WLTC as the beneficiary or partial beneficiary of any life insurance policy that you hold. If the WLTC is given outright ownership of the life insurance policy, you generally will get an income tax charitable deduction equal to the fair market value of the policy or its cost basis, whichever is less. Furthermore, you can arrange to deduct any future premiums that may be due on your policy as you pay.
You can name WLTC as a full or partial beneficiary of your IRA. This may reduce taxes paid by your children upon your death, as well as your income taxes in the year of the gift. WLTC receives 100% of the gift amount.
IRA Charitable Rollover?
If you own an IRA and are age 70 1/2 or over, the IRA Charitable Rollover is a smart and easy way to support the WLTC. The rollover amount is not subject to income tax. Your gift is put to immediate use supporting the WLTC. This option is available for 2011, but may not be available in future years.
Gift of Land with a Retained Life Estate
Under a life estate arrangement, you retain the right to live on or use the property for the remainder of your lifetime. Upon your death, the property is transferred to WLTC and the gift is completed. A current income tax charitable deduction is allowed for your gift based on the present value of your remainder interest.