Attorneys & Advisors FAQ
Giving all or part of the asset to charity will eliminate or reduce capital gains taxes and can replace less efficient charitable giving, continue or begin to provide lifelong income, and/or provide satisfaction about supporting a charity of one's choice.
Donor advised funds will lock in a tax deduction for the current year and allow as much time as is needed to choose the charity.
Giving the rental property to charity and setting up a Charitable Remainder Trust (CRT) will eliminate the capital gains tax, secure lifetime income (perhaps more than from the rental), claim a sizeable tax deduction, and support a favorite charity.
Naming the Vermont Community Foundation as a beneficiary of retirement assets—to create a fund from which heirs may recommend charitable gifts—will reduce estate tax, eliminate income tax on the IRA distribution, and create a family legacy. There are other assets with lower income tax burdens that could be used to pass wealth to family members, such as real estate and securities.
How do they want to be remembered? Suggest a charitable fund at the Foundation as a way to be remembered and an alternative to paying too much estate tax.
A life-income gift, such as a Gift Annuity, will assure the friend a lifetime income—and allow your client to support a favorite charity following the friend’s death.
The Community Foundation can accept almost any appreciable asset to help you set up a charitable fund.
We recommend that you visit the Planned Giving Design Center and utilize their online calculators to help answer your clients’ questions.