Planned Giving By Charitable Trust
A Charitable Remainder Trust can provide lifetime income to you while ultimately benefiting NYF. You can donate an asset, such as appreciated real estate, appreciated stock, or cash, to NYF. NYF will then sell the assets without paying capital gains tax and invest the proceeds—paying a monthly income to you for life, and if you wish, to your heirs for life or for a term of years. After all income beneficiaries pass away, your trust will help improve the lives of thousands of children in Nepal.
Your trust may provide several important tax benefits:
- Since a charitable remainder trust can sell assets without paying capital gains tax, it is particularly beneficial to donors who want to sell highly appreciated assets. Sometimes thousands of dollars that would have gone to capital gains taxes remain in the trust, generating income for you.
- You will receive an immediate income tax deduction for the value of the donation.
- The trust principal is not subject to estate tax
Donors who want a reliable income for life — while also supporting NYF’s transformative work. It can also be a tax-savvy choice to bypass capital gains tax (on stock or real estate) and reduce estate tax.
Yes! Gifts of appreciated stock are ideal for funding charitable remainder trusts because the stock can be reinvested by the trust for greater lifetime income for you. The trust may also bypass capital gains taxes at the time of the sale.
Yes — appreciated real estate may also be an excellent asset to place in a charitable trust. Mature investment properties frequently earn only 2-4% of their fair market value per year. When these properties are sold and the proceeds reinvested by the trust, earnings often increase significantly.
Owners ordinarily face substantial capital gains taxes when they sell rental properties or commercial real estate. Because your charitable trust (a tax-exempt entity) would be selling the property, there would be no capital gains taxes due.
A charitable life tenancy agreement allows you to give a personal residence or farm to NYF while retaining the right to live there for life. You may receive an immediate income tax deduction, bypass probate and estate tax on the property—and, of course, get the satisfaction of making a substantial gift to NYF during your lifetime.
Yes! Some people find it useful to give an undivided percentage interest of their property into a charitable trust, rather than all of it. A woman recently placed 75% of a real estate parcel into a charitable trust. When the lot was sold, about $70,000 came directly to her from the sale while $210,000 remained in the trust.
The Legacy Circle
If you include NYF in your planned giving, please let us know! The Legacy Circle is NYF’s way of saying Dhanyabad, or Thank You, to those who remember us in their estate planning. All you need to do is tell us you’ve included NYF in your will or other plans—no minimum bequest required—and you become part of this special group. Members of our Legacy Circle mean the world to us: It is a profound honor to be included in a long-time supporter’s estate planning, and a great joy to know that our programs in Nepal can continue providing Education, Health, Shelter, and Freedom for children in Nepal for years to come.
Legacy Circle members receive annual special impact reports and invitations to join exclusive gatherings with Olga and our team.
For More Information
Although NYF does not offer professional legal advice, we are happy to work with your tax advisor to find the best solution for you. All information is provided confidentially and without any obligation.