 |
|
|
- What is a deferred gift?
- A deferred gift is one which is established during your lifetime but which does not transfer to the charity until your death. This type of planned giving is popular with individuals who need access to their existing funds during their lifetime, but who want to make a difference to ministries after they are gone. Deferred giving works in conjunction with the ongoing capital campaigns of our sponsoring organizations.
- (top of page)
-
- Do I lose control of assets I put into my Living/Management Trust?
- Absolutely not. You and/or your spouse can name yourself as trustee(s) of the trust if you so elect, or be co-trustees with LFSW (or name the Foundation as a successor trustee). You buy, sell, trade, manage or otherwise control all assets in the trust just as you have before you placed them into the trust. The Foundation actually manages these assets only when you appoint us to or when you are incapacitated.
- (top of page)
-
- Can my spouse and I change or revoke our Living/Management Trust as we desire?
- Yes, until one of you dies or becomes incapacitated. The portion of the Trust relating to the incapacitated or deceased spouse then becomes irrevocable since one of its main advantages is its ability to assure that your wishes -- set forth when you were mentally capable -- are carried out. The survivor is still free to make changes in his/her portion as circumstances warrant.
- (top of page)
-
- How much will it cost me to set up and fund a Living Trust?
- All advisory services of Lutheran Foundation of the Southwest cost you nothing; that is our ministry. Your own attorney will actually prepare the trust documents; professional fees vary. We will supply sample documents for the attorney to follow and will guide you through the initial planning steps. We recommend that titles of key assets then be transferred into the trust in an orderly fashion. Living Trusts can initially be funded with as little as $1 and fully funded later, although this delay negates many of the possible tax benefits and management advantages of the trust.
- (top of page)
-
- Can I later access the principal of the funds I use to set up a Charitable Gift Annuity?
- You are guaranteed certain quarterly or annual payments as determined at the outset. The principal amount itself is an irrevocable gift to the Foundation for its ministries, for which the donor receives certain tax benefits at the time of donation and on portions of the payouts; it cannot be accessed. However, keep in mind that a Charitable Gift Annuity is a contract between the donor and the Foundation, and the payments continue according to the annuity's terms regardless of the fluctuation in the original principal amount.
- (top of page)
-
- How can I start getting income from the ranch I own without accruing exhorbitant capital gains tax liabilities?
- Donate your property to the Foundation to fund a Charitable Remainder Unitrust. You immediately eliminate any capital gains taxes otherwise due on the difference between what you initially paid for the land and its current appraised value, which you would have to pay if you sold the land outright. You and your spouse will start receiving monthly income when the asset is sold, for the rest of your lives and/or a pre-determined number of years.
- (top of page)
-
- What are some of the main differences between a Living/Management Trust and a will?
- Both direct distribution of your assets after your death, but a Living Trust offers many additional key advantages:
- All assets in the Living Trust at the time of your death avoid the probate process in the courts
- Living Trusts often speed distribution of assets to your heirs
- Living Trusts can reduce or eliminate estate taxes for many families by assuring that all possible exemptions and by-pass credit shelter trusts are used
- A will becomes effective only after its owner passes away, and
includes only instructions about asset distribution. A Living Trust, on the other hand, also includes instructions about your care and/or the management of your assets while you are still alive and can take effect when you become incapacitated, not just after you pass away.
- For more specific comparison charts, see Will vs. Trust under the Living Trusts section of this web site.
- (top of page)
-
- Is there any way I can benefit charities through my management trust without sacrificing assets I had planned to leave to my heirs?
- Yes, by electing to distribute your assets upon your death through a Charitable Family Trust. Using this option, your heirs receive all of the assets in your estate but over a set number of years, i.e. fifteen, instead of as one lump sum payment upon your death. The Foundation invests this principal and makes annual payments to your beneficiaries; the income the invested funds earn until the payout is completed will be used to set up endowments in your name for the Lutheran ministries and other charities you designate in advance.
- (top of page)
-
- I already have an annuity. How is it different from a Charitable Gift Annuity offered by Lutheran Foundation of the Southwest (LFSW)?
- More than likely you have a tax-deferred annuity offered by a bank, insurance company or other such institution. Since it was funded with pre-tax dollars, income taxes will be due on the amounts paid out - whether to you or to other designated beneficiaries, unless they are charitable organizations. LFSW's Charitable Gift Annuities alternately offer certain tax benefits both when they are originally funded and when payouts are made, and financially benefit both you and designated ministries.
- (top of page)
-
|
|
