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Consider
A Gift Trust 
Consider
a Gift Trust of your estate that you control and
can pass on to your heirs. Social capital, on the
other hand, refers to assets you cannot pass on
to heirs. That is, capital which will be paid in
taxes unless you direct it to charities of your
choice. The Internal Revenue Service (IRS) can
appropriate an impressive share of any assets in
excess of $675,000 (the 2000-01 threshold) that
you leave behind. In fact, under current tax law,
60% of more of your estate can go to taxes. If
you don’t take control, you will become a government
philanthropist by default.
Stocks,
bonds and mutual funds are a great way to give
without incurring capital gains on assets.
Now
charitable giving can be simple. Gift Trust planning
can help coordinate your financial and tax-planning
goals with your charitable giving goals. You can
use donations to a Gift Trust to reduce your income
tax obligation and perhaps your tax bracket. The
irrevocable donations you make can be deducted
- up to the maximum allowable by law – in the year
in which you make the donation (and a five-year
carry forward.) If you donate long-term appreciated
securities you’ll avoid capital gains tax and receive
an immediate charitable tax deduction for the full
fair market value of your gift.
Assets
donated to the Gift Trust during your lifetime
are not subject to estate taxes. One of the most
important benefits of the Gift Trust is that it
allows you to establish a tradition of giving that
can be carried on for generations. You can’t live
forever, but with the Gift Trust you can see to
it that your passion and your legacy for helping
the disabled at Riding Unlimited lives
on.
The
Gift Trust offers a successor donor feature that
allows you to name an individual or individuals
to oversee your account after your death or incapacity.
In this way, you can establish a philanthropic
tradition for your children, your grandchildren
or other important people in your life.
With the Gift Trust, you can achieve substantially
all of the goals you might seek through a Private
Foundation or Charitable Remainder Trust without
the complexities and expense normally associated
with setting up those kinds of accounts.
The Gift Trust is a ready-made vehicle, which provides
you with the opportunity to direct social capital
and consolidate all your charitable giving in one
account. The Gift Trust removes the obstacles to
charitable giving.
With any charitable giving decision, consult your
professional Financial Advisor for appropriateness
and suitability for your personal situation.
To learn more about a gift of securities, contact
Carla Ulrichherring at 800/460-1317.
GIVING
MAY YIELD TAX SAVINGS
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