Gift Planning

PLANNING IS A GIFT TO YOU AND YOUR LOVED ONES

With just a little bit of planning, you can provide for and protect your loved ones. This planning is positive and liberating and there are many simple and profound ways to increase lifetime income and minimize taxes. Your estate plan is likely the largest of wealth that you have control of in your lifetime. We are here to help.

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GIFTS BY WILL OR LIVING TRUST

Your will or revocable living trust is your last message to your loved ones. In addition to helping those less fortunate in your community, a gift in your will or trust is a profound statement of your values and provides an example to your heirs of the ideals you hold dear. A future gift can also reduce the amount of your taxable estate, which may increase the inheritance available to your loved ones. We want to ensure that we honor your wishes with regard to how you want your future gift used.

Contact us here for legal language and proper designation to use in a will or trust.

GIFTS BY BENEFICIARY DESIGNATION

Many assets such as retirement accounts and life insurance are transferred by beneficiary designation outside of your will. Some of these assets can also create a significant income tax consequence for your heirs. Designating the remaining balance of your retirement account to the causes that were important during your lifetime can be the simplest and most cost-effective way to leave a legacy. Assets from an IRA can be transferred tax-free to your favorite charities. It is important that you notify the charities to ensure that your gift is realized. We are happy to assist with designating your gift in honor or memory of a loved one or to keep your intentions anonymous if that is your wish.

Please contact us here for more information and our tax ID.

GIFTS THAT PAY INCOME FOR LIFE

A Charitable Gift Annuity (CGA) can provide you and/or a designated loved one with secure fixed income for life, a charitable income tax deduction and a significant portion of the income is tax free. Then after both lives, the remainder goes to help those less fortunate in your community and can be designated for a particular type of program or service.

A Generational Transfer Trust (GTT) is a gift option that allows you to transfer assets to your loved ones after your lifetime and stretch your gift to them over their life instead of in a lump sum. You can establish a GTT today using a variety of assets and receive income and generous tax benefits for yourself now, and then the income stream would go to your family later. Or you can create a GTT through your will for your loved ones. The assets grow tax-free within the Trust, can significantly increase the inheritance to your family, and after all lifetimes the remainder will help those less fortunate in your community long into the future.

A Stretch IRA Protection Trust (SIPT) is a gift option that allows you the use of your IRA today and provides for continued tax-free growth of assets for you and your beneficiaries. Then after your lifetime, the SIPT will protect the IRA inheritance principal value as the assets continue to grow tax-fee within the trust and provide secure income for life for your family. If your heirs inherit your IRA in a lump sum, they can lose as much as half of their inheritance. Even if stretched over 10 years (Secure Act Law), heirs can lose much of the principal due to tax consequences. After all lives, the remainder will help those less fortunate in your community.

A Capital Gains ByPass Trust (CGBT) is a gift option that allows you to convert an appreciated non-producing asset into an income-producing property without incurring capital gains tax. Receive secure income for life for you and/or others, an immediate charitable tax deduction, bypass capital gains tax, diversify and protect assets, while having a meaningful impact on your community with the remainder.

MAJOR GIFTS OF ASSETS

There are many types of assets that can be used to fund a charitable gift to The Salvation Army. The Northwest team is here to help you decide what works best for you and your family. Whether you are making a current gift or a deferred gift, we welcome many types of assets.

Real estate can be given now as an outright gift and receive a charitable tax deduction, or through your will or it can fund a life income gift option.

Appreciated Stock is an easy and tax-effective way for you to make an outright gift to The Salvation Army or fund a life income gift option. You can avoid paying capital gains tax, receive a charitable income tax deduction while furthering the work of The Salvation Army.

A Qualified Charitable Distribution (QCD) from your traditional IRA is a simple way to reduce your tax liability and help The Salvation Army serve the most vulnerable members of your community today. The new 2023 tax law allows a one-time distribution from your IRA to satisfy your required minimum distribution to fund a Charitable Gift Annuity.

ENDOWMENTS

An endowment to The Salvation Army is a gift that supports our work in the community in perpetuity. The endowed gift is invested, and a portion of the endowment is paid out as an annual distribution to fund our work. Any increase in value is retained in the endowment so it can grow and support future generations. Endowments can be established now or can be funded later through your will. Named Endowments are a great way to pay tribute to a loved one.

For more information on The Salvation Army Endowments, click here.