Planned Giving – Estate Gifts


What Is Planned Giving?

Planned giving allows donors to maintain access to income during their lifetimes, provides estate and tax planning tools, and builds permanent wealth for PLWA .

Each individual, family, or organization has unique charitable interests-¦ and unique financial circumstances. With a well thought out plan , you can find a way to fit both parameters.

Planned gifts may produce significant tax savings. They often help a donor avoid or stretch out payment of capital gains taxes, earn federal and state income tax deductions, reduce the size of the donor’s taxable estate,If given to a Montana endowment the gift may be eligible for the Montana Endowment Tax Credit.

(The Montana Endowment Tax Credit allows donors to pay less in Montana state income taxes when they give a qualifying planned gift to a qualified Montana charitable endowment. The incentive is 40% of the gift’s federal charitable deduction, up to a maximum $10,000 tax credit, per year, per individual, and a credit of 20% of a direct gift by a qualified business, up to a maximum of $10,000 per year.)

This following are some of the different kinds of available planned gifts

Gift Annuities

Charitable Gift Annuity. Your client can make a gift of cash or property to PLWA and get immediate tax benefits, and ensure that you and a loved one receive fixed quarterly or annual income payments for life.

Deferred Gift Annuity. This is the same as a Charitable Gift Annuity, except that the annuity payments are deferred to the maximum age allowed by the IRS, which creates greater tax savings.

Charitable Trusts

You can place cash or property in a trust that pays annual income to you (or another named beneficiary) for life. After death, the remainder of the trust transfers to PLWA and is placed into a charitable fund. Donors receive income tax benefits the year they establish the trust. When designated to benefit a permanent endowment , this gift allows donors to take advantage of the Montana Endowment Tax Credit. There are a variety of trusts, and your attorney or financial planner can help you determine the right one for your situation.

Estate Gifts – Bequests in your will or trust .

Will or Trust – You can designate a gift or portion of your estate to establish or give to a fund at the Montana Community Foundation and, in some cases, receive a substantial reduction in federal gift and estate taxes. The language in your will or trust can be as simple as the following : I give, devise, and bequeath ___________dollars ( $xx,xxx.xx ) to the Public Land/Water Access Association¸ Inc. of Billings, Montana.

Retained Life Estate. Donors can deed their home or farm to charity, but retain the right to live in it for the rest of their lives, a term of years, or a combination of the two.

Public Land/Water Access Association Inc. or PLWA,
is a citizen group organized and operated under the Montana nonprofit corporation act.
The Internal Revenue Service has made a determination that PLWA qualifies as a tax- exempt
organization under Section 501(c)(3) of the Internal Revenue Code and that it is a public charity.

Articles and Information on this site represent the opinion of the writer and are not intended as legal advice.
Legal counsel may be needed in dealing with specific access situations and issues.

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