As we confront the challenges of the future, we know that the generosity
of those who assist us will make all the difference in our success. That’s
why we seek your support.
But we also want to make sure that you benefit from making a gift to us.
How does this happen? Of course, you have the satisfaction that comes from knowing you’ve made a difference in the lives of others. But in fact, the best gift plans also improve your financial and tax situation, often right away.
There are many ways that your philanthropic giving can blend with your own financial needs and tax planning. To design a gift that benefits the people and organizations you care about most, we recommend that you obtain the professional counsel of an attorney who specializes in gift and estate planning. We can work with your advisors to help you plan for tomorrow and receive maximum benefits today.
Benefits
- Current income tax deduction
- Avoidance of long-term capital gains tax
- Increase in income and effective rate of return
- Reduction in estate and gift taxes
A Current Will —
A Vital Document
Have you put off making or updating your will? Maybe you think it costs
too much to make a will. Perhaps you’re having a hard time deciding
about how to leave your money. Or you may simply have an aversion to confronting
your mortality.
Drafting a will may seem like a daunting task at first, until you realize all the good that comes from having a will.
A bequest in your will lets you pass any amount you wish to us free of estate tax. You can give cash or specific property, a dollar amount or a percentage of your estate, with restrictions or without.
To make sure your will accomplishes your goals according to your wishes, we recommend that you obtain the professional counsel of an attorney who specializes in probate and estate planning.
Benefits
- Lets you provide for your family after your death
- Allows you to distribute your assets according to your wishes
- Saves on estate taxes, with proper planning
- Lets you leave a legacy without giving up assets
A Living Trust — Keep Control of Your Assets
A living trust lets you provide for yourself and your family before and
after your death. It has built-in flexibility that can work very well
with your overall estate plans, because it allows you to stay in control
of your assets.
Like wills, living trusts are fully revocable, so you can change or terminate them at any time during your life. But unlike wills, the terms of a living trust can be put into effect immediately.
You can also arrange a contribution to us through a living trust by naming us as the ultimate beneficiary. This method of giving is attractive because you still have complete control of the assets during your lifetime.
Benefits
- You or a beneficiary receive the income from the trust assets
- You’re in charge, but a professional trustee may do the detail work
- You name who will ultimately receive the trust remainder
- The trust assets bypass probate, so the terms are private
- Assets in the trust are removed from your probate estate, so estate expenses may be less
Life Insurance —
A Versatile Tool for Many Purposes
When you first obtained your life insurance policies, you obviously felt
a need for them. But perhaps you don’t need all that coverage today.
Yet you still have those policies.
If you’re thinking about a contribution to us, a gift of your life
insurance could be a sensible as well as generous course of action.
You can also use life insurance to replace the value of a different gift. For example, you could donate stock to us because of the tax advantages and purchase life insurance to benefit your heirs in the amount they would have received had you left them the stock.
Benefits
- Charitable deduction when you name us beneficiary and assign us ownership
- Flexibility through naming us beneficiary but keeping ownership
- Security for your family by naming us contingent beneficiary
- Reduction in estate taxes because proceeds are removed from your estate
Your Retirement Plan Assets
— Costly to Inherit
Did you know that your retirement plan assets are facing double taxation?
If you leave the assets to your heirs, you’ll generate “income
in respect of a decedent.” So not only is the amount diminished
by estate taxes, but the recipient also must pay income taxes on it!
If you can make other provisions for your family, there’s a better
option for your retirement plan assets — a charitable gift.
To implement your wishes, simply advise the plan administrator of your decision and sign whatever form is required. For an IRA or Keogh plan you administer personally, notify the custodian in writing and keep a copy with your valuable papers.
Benefits
- Naming us the primary beneficiary avoids all income and estate taxes
- Partial savings when you give us a specific amount before giving family the remainder
- Naming us the contingent beneficiary allows for greater flexibility
- Donating retirement plan assets could be the most cost-effective gift you can make
Real Estate — A
Tax-Wise Gift
Are you thinking of selling land or a building? Beware of capital gains
tax!
If you sell your primary residence, you can exclude up to $250,000 ($500,000
if you’re married) of the gain. But this tax break doesn’t
apply to other types of real estate, so you may have a better alternative.
A charitable contribution of real estate — whether it’s your personal residence, a vacation home, a farm, commercial real estate or vacant land — will give you numerous advantages.
When you give your home or other real estate to us, you create an enduring testimonial of your interest in our mission. And what’s more, your personal satisfaction is complemented by valuable tax benefits.
Benefits:
- Income tax charitable deduction for the full fair market value
- Avoidance of tax on the property’s appreciation
- No hassle from trying to sell the property
- No gift tax, plus a reduction of your taxable estate
Retained Life
Estate — An Option That Lets You Have it Both Ways
Let’s assume you like the tax advantages that a charitable gift
of real estate would offer, but you want to continue living in your personal
residence for your lifetime. Did you realize you can give us your home,
even though you continue living there?
It’s true. It’s called a retained life estate.
A gift of your home, farm, vacation home or condominium, even with stipulations about occupancy, results in a charitable deduction on your income tax.
The retained life estate may also provide you with a way to let someone other that you or your spouse (perhaps a sibling or child) have life occupancy of your home with reduced tax obligations.
Benefits
- Lifetime use of the residence for you and/or another person
- Income tax savings through charitable deduction
- Estate tax savings for you and/or another person (if the other person is your spouse)
- Ability to gift only partial interest in property and receive tax advantages
Closely Held Stock
— Make a Gift; Maintain Control
If you own a sizable block of stock in a closely held corporation, you
may have a gift option that makes everyone happy.
Suppose you decide to donate some shares (few enough that you retain 50 percent ownership) to us. And then we present the stock to your corporation for redemption. Your corporation uses retained earnings for the purchase.
We win because we receive much-needed funds. But you and your corporation also win.
There’s one caveat: the IRS has ruled that you cannot legally bind a charitable organization to go through with the redemption at the time it receives the shares. But a charitable organization may independently offer the donated stock for redemption.
It’s a favorable option that benefits you and us.
Benefits
- Income tax deduction for the charitable contribution
- No capital gains tax on the appreciation in value
- No second tax on accumulated earnings by averting a dividend distribution
- You maintain control of the corporation
Charitable Remainder Annuity Trust — A Gift
to Us with Predictable
Benefits to You
If you’re disappointed in the yield from your current investments
in the stock and bond markets, yet you want to avoid the capital gains
tax should you sell, try a charitable remainder annuity trust.
This plan will pay you, year after year, the same dollar amount you choose at the outset. The income payments are fixed based on the starting valuation. Then after your lifetime (and the lifetime of a surviving beneficiary, if desired), the trust remainder is available to support our mission.
The charitable remainder annuity trust is more than an eventual gift to us. It lets you give away the tree and still keep the fruit, because you receive an increased income from your donation.
Benefits
- A fixed dollar income paid annually, semiannually or quarterly
- Immediate charitable deduction
- A way to increase income from a low-yield holding
- Freedom from investment management
- Avoidance of capital gains tax on appreciated assets used to fund the trust
Charitable Remainder Unitrust — A Gift With
Built-In Flexibility
A charitable remainder unitrust is like a combination of a gift and an
investment plan. You place assets in trust and you (and/or another beneficiary)
receive lifetime income from them, then we receive the remainder.
With a unitrust, the amount you receive as income is a set percentage of the value of the trust assets, redetermined annually.
You also have the option of choosing one of five variations of unitrust. A unitrust with a net income plus makeup provision, for example, pays only the actual trust yield, even if it is below the stated percentage. Then in later years, when performance is better, those deficiencies are made up.
This option is excellent for devising a supplemental retirement plan — we can provide you with more details.
Benefits
- Lifetime income (often greater than your previous yield)
- A sizable income tax charitable deduction
- Avoidance of capital gains tax if you donate appreciated securities
- Professional management of the assets frees you from investment responsibilities
Charitable Lead Trust — Preserve an Inheritance
Are you concerned about the possibility of the government taking a huge
part of the assets you were planning to leave your heirs?
There’s a way to pass assets to your family with significant estate tax savings while at the same time making a gift to us. It’s called a charitable lead trust.
After we receive income from assets in the trust for a period of years, the principal goes to your family, with estate or gift taxes usually reduced or even eliminated.
The lead trust is an exceptional way to transfer property to your children or other heirs at minimal tax cost. It’s ideal if you’re willing to forgo investment income on an asset but don’t want to force your heirs to surrender the principal.
With a lead trust, you carry out your philanthropic plans over the coming years and save on taxes.
Benefits
- Can be funded during your lifetime or through your will
- You support our mission through annual income payouts
- Reduces your taxable estate and potential gift taxes
- Assets can be kept in the family
Charitable Gift Annuity —
Boost Your Rate of Return
The concept of a gift annuity is simple. You donate assets that we reinvest.
We guarantee to pay you a fixed income for life (and, if desired, for
another beneficiary’s lifetime). Then, the funds are available for
our use.
A charitable gift annuity is particularly attractive because the rates (based on your age) typically produce higher income than the yields from investments in the stock and bond markets.
And when this aspect is combined with partially tax-free income, the effective rate of return is even higher.
Benefits
- Lifetime income for yourself and possibly another person
- Charitable deduction for a portion of the value of the gift
- Part of the annual income is considered a tax-free return of capital
- Capital gains tax savings when you contribute appreciated securities
Benedictine Foundation of Oregon
PO Box 912, Mt. Angel, OR 97362-0912
503-845-2556 • FAX 503-845-2815
benfoundation@mtangel.net
Supporting the Benedictine Sisters of Mt. Angel
and their ministries.
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