HOW A BEQUEST WORKS

A bequest is one of the easiest gifts to make. With the help of your attorney, you can include language in your will or trust specifying a gift to be made to family, friends or The Boys and Girls Club of Lake Tahoe as part of your estate plan, or you can make a bequest using a beneficiary designation form.

HERE ARE SOME OF THE WAYS TO LEAVE A BEQUEST TO The Boys and Girls Club of Lake Tahoe

• Include a bequest to The Boys and Girls Club of Lake Tahoe in your will or revocable trust.
• Designate The Boys and Girls Club of Lake Tahoe as a full, partial, or contingent beneficiary of your retirement account (IRA, 401(k), 403(b) or pension)
• Name The Boys and Girls Club of Lake Tahoe as a beneficiary of your life insurance policy

A BEQUEST MAY BE MADE IN SEVERAL WAYS

CONTACT US

If you have any questions about leaving a bequest to us, please contact us. We would be happy to assist you. If you have been so generous as to include a bequest to The Boys and Girls Club of Lake Tahoe as part of your estate plan, please take the time to let us know. We would like to recognize you and your family for your generosity.

HOW AN IRA CHARITABLE ROLLOVER GIFT WORKS

HOW A BENEFICIARY DESIGNATION GIFT WORKS

To make your gift, contact the person who helps you with your account or insurance policy, such as your broker, banker or insurance agent.

Ask them to send you a new beneficiary designation form.

Complete the form, sign it and mail it back to your broker, banker or agent.)

Typically, naming The Boys and Girls Club of Lake Tahoe as the beneficiary of your retirement assets is as simple as providing our organization’s official information. Official name, address, and tax ID are as follows:

When you pass away, your account or insurance policy will be paid or transferred to Boys and Girls Club of Lake Tahoe, consistent with the beneficiary designation.

IMPORTANT CONSIDERATIONS FOR YOUR FUTURE

If you are interested in making a gift but are also concerned about your future needs, keep in mind that beneficiary designation gifts are among the most flexible of all charitable gifts. Even after you complete the beneficiary designation form, you can take distributions or withdrawals from your retirement, investment or bank account and continue to freely use your account. You can also change your mind at any time in the future for any reason, including if you have a loved one who needs your financial help.

ADDITIONAL INFORMATION

Flexibility—Most beneficiary designation forms are very flexible. You can name The Boys and Girls Club of Lake Tahoe as a “full” or “partial” beneficiary of your account or life insurance policy. You can also name The Boys and Girls Club of Lake Tahoe as a “primary” or “contingent” beneficiary.

Family Considerations—Beneficiary designation gifts allow you to provide for family and support the causes that matter most to you. With a designation form you could, for example, name your spouse as the “primary” beneficiary and each of your children and The Boys and Girls Club of Lake Tahoe as “partial contingent” beneficiaries. With this arrangement, if your spouse survives you, he or she would receive the account. If not, the account or policy would be paid out to your children and The Boys and Girls Club of Lake Tahoe in whatever shares (or percentages) that you chose on the designation form.

Terminology—Beneficiary designation gifts are simple and straightforward. Common terminology includes “beneficiary designation” but also includes “payable on death” or “transfer on death.” The term “beneficiary designation” is most commonly used when naming beneficiaries of retirement plans or life insurance policies. The term payable on death (or “POD”) typically involves the designation of a beneficiary of a checking account, savings account or certificates of deposit, and transfer on death (or “TOD”) often involves the designation of a beneficiary of stocks, bonds or mutual funds.

Beneficiary Designations and Real Estate—Some states even allow “beneficiary designation deeds” or “transfer on death deeds,” which would allow you to name The Boys and Girls Club of Lake Tahoe as the survivor beneficiary of your home, farm or other real estate. As with other beneficiary designation gifts, these gifts are revocable by filing a revocation or new beneficiary designation deed.

HOW A CHARITABLE REMAINDER UNITRUST WORKS

ADDITIONAL INFORMATION

Charitable remainder unitrust for income. A charitable remainder unitrust pays you income that reflects the value of the trust’s assets. Your income has the potential to increase over time as the trust grows in value.

How to select the right unitrust payout. There are several unitrust payout options to meet your needs. The best payout option may depend on the nature of the asset used to fund the trust. We would be happy to work with you and your tax advisor to determine which payout option is best for you.

CHARITABLE REMAINDER ANNUITY TRUST

You may be looking for a way to receive fixed income for life or a number of years. You may be concerned about the high cost of capital gains tax with the sale of an appreciated asset. Perhaps you recently sold property and are looking for a way to save on taxes and plan for retirement. A charitable remainder annuity trust may offer the solutions you need.

BENEFITS OF A CHARITABLE REMAINDER ANNUITY TRUST

• Receive fixed income for life or a term of up to 20 years
• Avoid capital gains tax on the sale of your appreciated assets
• Receive an immediate charitable income tax deduction for the charitable remainder portion of your gift to Boys and Girls Club of Lake Tahoe

HOW A CHARITABLE REMAINDER ANNUITY TRUST WORKS

1. You transfer cash or assets to fund a charitable remainder unitrust.
2. In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free.
3. The trust is invested to pay fixed income to you or any other trust beneficiaries you select based on a life, lives or a term of up to 20 years.
4. You receive an income tax deduction in the year you transfer assets to the trust.
5. Our organization benefits from what remains in the trust after all the trust payments have been made.

MORE ON CHARITABLE REMAINDER ANNUITY TRUSTS

If you are tired of the fluctuating stock market and want to receive fixed payments, a charitable remainder annuity trust may provide you with the stability you desire. A charitable remainder annuity trust pays a fixed amount each year based on the value of the property at the time the trust is funded.

HOW A CHARITABLE LEAD TRUST WORKS

ADDITIONAL INFORMATION

Zero Tax Plan – It is even possible to set up a lead trust that will allow you to transfer assets to your family with zero transfer taxes. The IRS assumes that a lead trust is only earning at the current low federal rate. If the actual investments of the trust produce a higher return than the payments made to The Boys and Girls Club of Lake Tahoe over the term of the trust, then the full value of the trust may be transferred to family with zero gift tax.

FLP/Lead Trust Plan – To discount your gift to family even more, you may consider first transferring your real estate or other assets into a family limited partnership (FLP), which will fund your lead trust. The combination of the FLP, the lead trust and a gift exemption can permit the lead trust to pay income to us for a number of years and potentially transfer substantial assets tax-free to your family.

Increasing Payment Lead Trust – With increased volatility in the stock market, you may want to consider creating a lead trust that makes fixed payments of increasing amounts to us over time. Because the payments to us are fixed, your family ultimately benefits from any growth in the trust. Low payouts in early years allow the trust to grow, thus allowing protection should the economy produce below-average returns in the future.

Grantor Lead Trust – A grantor lead trust permits you to transfer your cash or assets to a trust that will make gifts to charity for a number of years. At the end of the trust term, you receive the assets back from the trust.

HOW A SALE AND UNITRUST WORKS

MORE ON SALE AND UNITRUST

When transferring a portion of your primary residence to fund a unitrust, you may apply your one-time home exclusion to reduce or eliminate capital gains tax that would otherwise be due from the sale. Your tax advisor can assist you to determine if you should utilize this strategy.

HOW A BARGAIN SALE WORKS

MORE ON BARGAIN SALES

A bargain sale may be accomplished even if you have a mortgage on your property. Because relief from indebtedness can have tax implications, please consult with your tax advisor prior to completing a gift of a bargain sale.

HOW A GIVE IT TWICE TRUST WORKS

ADDITIONAL INFORMATION

Provides Tax Savings. The gift it twice trust produces income and estate tax savings.

Promotes Fairness. The give it twice trust establishes a mechanism that will help you treat each of your children equally. This can help promote peace in your family.

Teaches Your Children. Give children income rather than a lump sum. Studies of inherited wealth have concluded that many children spend lump sum inheritances, whereas they learn to be more responsible with inheritances paid out over time.

HOW A LIFE ESTATE WORKS

ADDITIONAL INFORMATION

Life Estates Work for Spouses Too – The life estate can last for your life or based on your life and that of another person, such as a spouse or loved one.

Mortgage Debt – It is possible for you to make a gift of your property even though there is a mortgage upon the residence.

Maintenance Issues – You will be responsible for the maintenance, insurance and taxes on the property, just as you were prior to creating the life estate.

Life Estates Are Flexible – If, at some point in the future, you are no longer able to live independently in your home, we may be able to help you use your life estate to create a lump sum cash payment (with a joint sale) or create an income stream (using the life estate to fund a charitable remainder trust or charitable gift annuity).

HOW A DONOR ADVISED FUND WORKS

GIFTS FROM YOUR DONOR ADVISED FUND

Your donor advised fund has several advantages. You can make one larger gift to a DAF and then recommend grants to us and other nonprofits.

HOW AN IRA ROLLOVER TO GIFT ANNUITY WORKS

Contact us about creating an IRA rollover to gift annuity with Boys and Girls Club of Lake Tahoe.

Contact your IRA plan administrator to make a one-time qualified charitable distribution (QCD) of up to $50,000 from your IRA to Boys and Girls Club of Lake Tahoe.

We will use your IRA gift to fund your gift annuity payments.

Please note that IRA gifts do not qualify for a charitable deduction.

After you receive payments for life, there will be a future gift to us.

Please contact us if you wish your future gift to be used for a specific purpose.

SEND US YOUR GIFT BY MAIL

If you hold securities in certificate form, you will need to use two envelopes to complete your gift. In the first, place the unsigned stock certificate(s). In the other, include a signed stock power for each certificate. You may obtain this from your broker or bank. Please remember to use certified mail.

CAN YOU MAKE A GIFT OF MORTGAGED PROPERTY?

Please contact us if the property you wish to give has existing debt or a mortgage. Check with us on the capital gains tax implications of your gift. You also may be interested in life income options.

LEAVE YOUR RETIREMENT ASSETS TO US

Did you know that 60%-65% of your retirement assets may be taxed if you leave them to your heirs at your death? Another option is to leave your heirs assets that receive a step up in basis (such as real estate and stock) and give the retirement assets to Boys and Girls Club of Lake Tahoe. As a charity, we are not taxed upon receiving an IRA or other retirement plan assets.

HOW TO TRANSFER YOUR RETIREMENT ASSETS

Your retirement assets may be transferred to The Boys and Girls Club of Lake Tahoe by completing a beneficiary designation form provided by your plan custodian. If you designate The Boys and Girls Club of Lake Tahoe as beneficiary, we will receive the full value of your gift because your IRA assets will not be taxed at your death. Your estate will also benefit from an estate tax charitable deduction for the gift.

OFFICIAL ORGANIZATION INFORMATION

Typically, naming The Boys and Girls Club of Lake Tahoe as the beneficiary of your retirement assets is as simple as letting your account administrator know your wish to do so and providing our organization’s official information. Official name, address, and tax ID are as follows:

DESIGNATE US AS BENEFICIARY OF YOUR POLICY

You can also designate the Boys and Girls Club of Lake Tahoe as the beneficiary of your life insurance policy. You will continue to own and can make use of the policy during your lifetime. The policy will be included in your taxable estate when you pass away, but your estate will benefit from an estate tax charitable deduction for the value of the gift to us.