Planned Giving

Charitable Remainder Trust

A Charitable Remainder Trust (CRT) is created by a transfer of assets to a trust that will pay you or another beneficiary income for life or for a period of years. At the death of the last beneficiary, the remaining property in the trust passes to AID Atlanta.

There are two basic kinds of CRTs:

1. Annuity Trust: provides beneficiary(s) a fixed dollar income and is determined when gift is made.
2. Unitrust: provides beneficiary(s) a fixed percentage of the fair market value of the trust assets, recalculated annually or at some other fixed period.

Tax Advantages of a CRT

• Receive an immediate charitable income tax deduction.
• Tax-free Diversification of the assets – the trust pays no capital gains tax on the sale of trust assets
• The entire value of the trust at your death is excluded from your estate and is not taxed.

Charitable Lead Trust

A Charitable Lead Trust (CLT) is created by a transfer of assets to a trust that will pay AID Atlanta income for a term of years. At the end of the term, you or a beneficiary receives the remaining trust assets. A CLT can be created during life or at death (under the terms of your will). This planned giving option is a great way to transfer assets to future generations while benefiting AID Atlanta today. The tax advantage is that it removes assets from your estate and minimizes your estate and gift taxes.

AID Atlanta's Development Department is prohibited from giving legal or financial advice, and nothing provided here should be interpreted as such.

Retirement Plans are one of the best assets to own during your life but they are the worst asset to own at your death.

At death, retirement plan assets are subject to income and estate taxes and their value can be reduced by as much as 75%. Naming AID Atlanta as beneficiary of funds in your retirement plan can be easy and will reduce the size of the taxable assets and avoid subjecting the estate or beneficiary to income taxation at your death.

Contact the financial institution handling your Individual Retirement Account (IRA), or other retirement plan or profit sharing account. A simple form from the manager of the fund is normally all that is required to name AID Atlanta as a beneficiary of your retirement plan.

Using a life insurance policy in your planned giving is a perfect way to make a leveraged gift to AID Atlanta.

By making small payments each year into your policy for a number of years, you can leave a bequest of sizable proportions to AID Atlanta. Upon the death of the insured, the policy proceeds going to AID Atlanta will be an estate tax charitable deduction.

There are two ways to ways to give a gift of a life insurance policy:

• Gift of existing policy – AID Atlanta becomes the owner and beneficiary. You get an immediate charitable income tax deduction for the lesser of current cash value or premiums paid. Any future premiums you pay are deductible as contributions.
• Name AID Atlanta as a beneficiary of a new or existing policy – You keep control of the policy while naming AID Atlanta as a full or partial beneficiary. For this gift you are entitled to a charitable deduction for the value of the initial premium and you will receive additional deductions when you make later premium payments.