Charitable remainder trust: If you can benefit from the income generated by the property, a charitable remainder trust may provide a good solution. The property is irrevocably transferred into a trust which pays income to you for life or a term of years.
After that, the remaining principal goes to support VCFA.
Additional benefits include a substantial income tax deduction in the year the trust is established and no capital gains tax at the time of the gift.
A charitable gift annuity can be established with the transfer of cash or property in exchange for fixed annuity payments to one or two life annuitants. This option is an attractive way to make a gift and retain a fixed income for the life of the beneficiary. Rates vary depending on the age of the beneficiary.
A charitable gift annuity is considered a general obligation of the issuing charitable organization. Charitable gift annuities, therefore, take on much of same characteristics as commercial annuities with the issuing charity acting as the insurer. VCFA has partnered with the Vermont Community Foundation to offer charitable gift annuities which are backed by all the assets of the Foundation, currently in excess of $150,000,000.
Charitable Remainder Trusts
These larger, separately managed trusts pay either fixed income or a percentage of the market value of the trust, which is valued annually. They may run for a lifetime or for a term of years.
Charitable Lead Trusts
Charitable lead trusts differ from charitable remainder trusts in that payments are made to VCFA for a specified period of time. At the end of this period, the assets are transferred back to you or your named beneficiary.
Gift of Life Tenancy
You may make a gift of a personal residence, second home, or farm to VCFA while retaining the right to occupy the premises during your lifetime. Your spouse can retain the same right. A gift of life tenancy allows you to claim an immediate income tax deduction for a portion of the appraised value of the property.
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