Making a charitable gift through estate plans allows a donor to defer their giving and create a charitable legacy for remaining family members. Our staff is available to work with donors and their professional advisors on the estate gift options described below.
The Oklahoma City Community Foundation is pleased to now offer Legacy Giving, a free comprehensive section of our Web site that is devoted entirely to information and tools for estate gifts including bequests, trusts and charitable gift annuities. Legacy Giving offers important resources for both donors and their professional advisors as they discuss estate plans and charitable giving. Visit Legacy Giving.
A charitable bequest included in a will is one of the easiest estate gifts. With a bequest, a donor can designate a percentage, a residual or the entire estate to benefit an existing endowment or to create a new fund. A bequest may also provide substantial reductions in federal estate taxes. We offer an example of bequest language (iPhone/iPad version).
Charitable Gift Annuities
A charitable gift annuity (CGA) provides individuals 60 years or older with not only income for life but also the peace of mind of making a difference through a lasting charitable gift. Through a CGA, a donor can make a gift with cash or other assets of at least $20,000, receive income for life and, at the end of the annuity, the remaining assets will go to a charitable fund or fund designated by the donor. We offer six annuity options.
Charitable Remainder Trusts
A charitable remainder trust (CRT) allows a donor to place assets in a trust that pays annual income to the donor or a beneficiary for life or a term of years. With a CRT, the donor can avoid capital gains tax on the donated assets and also receive an income tax deduction for the fair market value of the remainder interest of the trust. In addition, the trust is removed from the estate, reducing subsequent estate taxes. Upon the trust’s termination, the remaining assets will benefit an existing endowment fund or an advised fund.
Charitable Lead Trusts
A charitable lead trust (CLT) allows a donor to transfer assets to the Oklahoma City Community Foundation that then pays a percentage of the assets’ value to an endowment fund designated by the donor. At the end of the trust term, the remaining assets are passed on to designated heirs. A CLT offers several advantages including greatly discounted gift or estate taxes and any growth in the assets will be free of these taxes for the heirs. In certain cases, a charitable lead trust may also provide an income tax deduction at the time the trust is created.
Retirement Plan Assets
Retirement plan assets are subject to not only estate taxes, but also income taxes. To reduce this burden on their estate and heirs and to create a charitable legacy, donors can use any retirement plan assets to maximize charitable contributions by establishing an advised fund or designating the assets to an existing endowment fund. If the assets are used to create an advised fund, the donor’s heirs can serve as advisors to the fund, recommending grants to nonprofit organizations and projects ensuring a charitable legacy.
Life insurance can be an effective way to fund a charitable giving plan through the Oklahoma City Community Foundation without a significant outlay of cash. Since life insurance policies generally result in large payments at one time, designating life insurance to establish an endowment such as an advised fund can provide tax advantages and benefit a charitable organization.
For more information about charitable estate gifts, please contact Joe Carter at 405/606-2914.