Leave a Legacy
There are many options for donors who wish to benefit The Rotarian Foundation of Livermore. The Rotarian Foundation of Livermore is incorporated as a 501(c)3 non-profit organization. It is classified by the IRS as a public charity, and donations are tax deductible. Depending on an individual’s personal financial situation, there may be various tax benefits, including income tax deductions or estate and gift tax advantages to be gained by utilizing one or mare of the ideas described below. This information is not meant to substitute for legal advice or direction, but merely to spark a conversation between potential benefactors of The Rotarian Foundation of Livermore and their personal Estate Planning Attorney and Tax Advisors.
The following are possible ways that you can benefit The Rotarian Foundation of Livermore:
“Bequests”
If you would like to give a portion of your estate to The Rotarian Foundation of Livermore, then please take this suggested language to your estate planning attorney, and they can help you implement a bequest through your will or trust.
“I give to The Rotarian Foundation of Livermore, a non-profit organization, whose present address is P.O. Box 2181, Livermore, CA 94551-2181, and it’s successors, the sum of $____________ (or a description of the property devised) (or a ___% of the residue of the estate) to be used for its general purposes.”
If you would like, you may specify how The Rotarian Foundation of Livermore is to use the funds you are bequeathing. Such a specification would be included in the language of your bequest.
“Immediate Gifts”
If you would like to make an immediate gift or donation directly to The Rotarian Foundation of Livermore of cash, real property or other tangible personal property, please contact Gretchen Rutherford at The Rotarian Foundation of Livermore through the website “Contact” tab on the home page.
“Structured Gifts”
If you would like to make a gift or donation to The Rotarian Foundation of Livermore, especially if it is a gift of appreciated assets like real property or stock, in a manner that would allow you to continue to receive a stream of income during your lifetime, or in a manner that would ensure a stream of income or the use of an asset for your other beneficiaries, please contact your estate planning attorney to learn how setting up a specialized trusts, briefly explained below, can allow you to benefit The Rotarian Foundation of Livermore, obtain favorable tax benefits and still have an ongoing economic benefit for yourself or your other beneficiaries.
A. Charitable Remainder Trust (either Unitrust or Annuity Trust)
A charitable remainder trust is an income trust created by transferring property irrevocably to a trustee, under a written trust agreement, which provides the donor and/or designated beneficiaries with income for life. After the income beneficiaries die, the remaining trust principal passes to The Rotarian Foundation of Livermore for its general charitable purposes. There are two types of Charitable Remainder Trusts, annuity trust and unitrust. The difference is in the two options, is whether the income paid out will be a percentage of the trusts principal or a fixed dollar amount, both on an annual basis.
B. Charitable Lead Trust (either Non-Grantor Lead Trust or Grantor Lead Trust)
A charitable lead trust is the opposite idea of the remainder trust, in this trust, the trust pays income generated by the assets placed into the trust to The Rotarian Foundation of Livermore over a designated time frame, and at the end of that time returns the principal to the donor or their beneficiaries. The income generated for The Rotarian Foundation of Livermore must be annuity or unitrust interest and may be paid out over the lifetime of the donor or as a charitable bequest.
These legal devices can often be used to the maximum benefit of both the donor and The Rotarian Foundation of Livermore.
“Retirement Accounts”
If you have tax deferred accounts, such as IRA’s, 401k’s, etc. you may want to consider the unique tax savings benefits of naming The Rotarian Foundation of Livermore as a designated beneficiary to all or a part of these type of accounts. Please consult with your tax advisor and estate planning attorney to see if naming The Rotarian Foundation of Livermore as your designated beneficiary would help you reach your tax and charitable goals.
“Life Insurance”
If you have existing life insurance policies that no longer serve their original purpose, you might want to consider making a gift of the ownership of those policies to The Rotarian Foundation of Livermore. Such a gift could qualify for a tax deduction. If you would rather keep the policy, but desire to benefit The Rotarian Foundation of Livermore, you might consider naming The Rotarian Foundation of Livermore as the designated beneficiary to all or a portion of the policy payout.
Life Insurance is also a valuable tool that can be used in conjunction with some of the other ideas mentioned here, to maximize your ability to meet your charitable needs while still benefiting your other beneficiaries. Life insurance when held in an irrevocable life insurance trust (ILIT) does not increase the size of your taxable estate for Federal Estate Tax purposes, but allows you to leave a larger estate or create a wealth replacement vehicle. This can allow for the maximum amount of estate tax to be avoided.
Before making any decisions on making a donation or gift to The Rotarian Foundation of Livermore, you should consult with your personal estate planning attorney, tax advisor and other trusted financial advisors. We will be pleased to meet with you and your advisors to discuss the various opportunities available for you and for the benefit of The Rotarian Foundation of Livermore.
