A Wide Range of Giving Options
Gifts during your lifetime
Gifts of cash are deductible up to 60% of adjusted gross income in the year of the contribution, with a five-year carryover for the excess not used. If you contribute appreciated stock or other real property, capital gain taxes are eliminated, and you can take a charitable deduction for the fair market value of the gift, up to 30% of your adjusted gross income.
You can bequeath a specific dollar amount, property to be sold, or a percentage of your residual estate. Your estate will receive an estate tax charitable deduction for the amount of the gift. We can provide you with sample language to include in your last will and testament to make a charitable bequest to your existing legacy fund, or to establish a new legacy fund at KBFUS.
Life insurance policies
You can name your legacy fund as the beneficiary of an existing life insurance policy that is no longer needed to provide for dependents. While the value of the policy will be included in your estate, an offsetting estate tax charitable deduction will be allowed.
Retirement plan assets
If you designate your legacy fund as the beneficiary of a retirement account upon your death, there will be no estate taxes to be paid, nor income taxes on distributions.
Charitable remainder trusts
With a charitable remainder trust, a contribution of cash, securities or other assets is placed in a trust. The trust makes an annual payment to one or more beneficiaries, for life or for a specific number of years, and when it terminates the remaining assets are transferred to your legacy fund. You will benefit from an immediate income tax deduction and avoid capital gain and estate taxes.
Charitable lead trusts
With a charitable lead trust, your legacy fund receives an annual payment from the assets placed in trust or from their earnings, for a specific number of years. When the trust terminates, the assets return to you, to your estate, or to your heirs, who may benefit from significantly reduced gift and estate taxes.
Consult your legal advisor to see how the above tax rules apply to your specific circumstances.
Return to Legacy Funds
Read more about How it Works
Any further questions? Please contact us at [email protected] or (212) 713-7660.
|A Legacy Fund at KBFUS- Leaving a Charitable Legacy for a Favorite Cause Overseas|
|KBFUS Investment Policy Statement|