Charitable Trust

Charitable Trust

Charitable trust allows you to maintain a set income that does not fluctuate for a lifetime or a significant number of years. This can be done by giving your property that appreciates, your assets, or cash to a charitable trust which is then sold free of taxes by the trust and you can benefit from a set income from this transfer for life.

This option is great for the people who are looking to sell their property or have sold a property or asset in recent times and want to save on taxes.

A charitable trust offers a number of benefits, these are

   A set income that is maintained for your lifetime or a term of years.

   Saving on taxes.

   Get a charitable income tax deduction right after, for the charitable remainder part of your gift to Becca.

   Help with your long term plan of retirement.

Process of Charitable Gift Annuity

   To set up charitable gift annuity trust, you will have to transfer the money, assets or your property you are willing to sell to the charitable trust.

   If the property you have transferred is appreciated, the trust will proceed to sell it free of taxes.

   After selling, the trust will be subjected to provide you or your desired beneficiaries for a lifetime or up to twenty years.

   You will get an income tax deduction in the year you transfer your property or asset to the trust.

   After all the payments are made, the remaining percentage left in the trust will benefit Becca.

Charitable Remainder Unitrust

When purchasing an asset with a high value, you could be worried about the high capital gains tax rate. Perhaps you just sold a piece of real estate and are looking for a strategy to reduce your taxes this year while making retirement plans. Perhaps a charitable remainder unitrust can provide the answers you seek.

A charitable trust offers a number of benefits, these are

   Get a lifetime income, a period of up to 20 years, or a lifetime income plus a term of up to 20 years.

   Establish a future legacy gift to our organization.

   Get a charitable income tax deduction right away for the trust’s charitable portion

How does it work?

  You transfer cash or assets to fund a charitable remainder unitrust.

  They will thereafter sell the assets tax-free in the case of a trust funded with appreciating assets.

  The trust is invested to pay income to you or any other trust beneficiaries you select based on a life, lives, a term of up to 20 years or a lifetime.

  You receive an income tax deduction in the year you transfer assets to the trust.

  Becca benefits from what remains in the trust after all the trust payments have been made.

Charitable Remainder Annuity Trust

In order to fund a charitable remainder annuity trust, you transfer your cash or valued assets. The trust buys your property tax-free and pays you a fixed income for the rest of your life or for a specified number of years.

Advantages

   Get a fixed income for the rest of your life or for up to 20 years.

   Refrain from paying capital gains tax when selling your appreciated assets.

   The charitable remainder of your gift to Becca qualifies for a quick income tax deduction

How does it work?

   To finance a charitable remainder annuity trust, you contribute money or other assets.

   The trust will thereafter sell the assets tax-free in the case of a trust funded with appreciating assets.

   The trust’s assets are invested to generate a fixed income that will be paid to you or any other trust beneficiaries you choose over the course of one or more lives or a duration of up to 20 years.

   In the year that you transfer assets to the trust, you are entitled to a tax deduction.

   Whatever money is left over after all trust distributions are paid goes to Becca.

Charitable lead trust

Charitable lead trust is a great way to contribute if you plan to pass on some of your assets to your family while reducing or eradicating the gift/estate tax.

Advantages

   Receive a charity deduction for your gift or estate tax.

   Transfer an inheritance to family members at a reduced or no cost.

How does it work?

  You contribute some of your assets to a trust that will provide Becca with income for a while.

  At the time of your gift, you are given a gift or estate tax deduction.

  Your family eventually obtains the trust’s assets as well as any value increases.

Life Estate Reserved

You could want to give your house or other property to Becca when you pass away, but you might also want to take a charitable income tax deduction now. You might find the answer you need in a life estate reserved!

Advantages

   Get a federal income tax deduction for the value of your home’s or farm’s remaining interest.

   Maintain lifetime control and use of your house or property.

   Make a life estate that is built on multiple lives. This will ensure that you and a loved one, such as your spouse or kid, can continue to utilize the property.

How does it work?

   You give Becca your house or another piece of property. You and any other life estate party listed in the deed will be granted the right to utilize your home or farm for the remainder of your lives, according to a clause in the deed.

  You and Becca sign a maintenance, insurance, and taxes (MIT) agreement outlining your respective responsibilities for upholding the property’s condition, property insurance, and property taxes.

  Your house or farm will be Becca’s after the life estate owners pass away. The property will be put to use or sold to support our philanthropic endeavors.

Give it Twice - Support Family and Charity

You can give Becca a gift while still making wealth for your children. Because you can utilize this type of unitrust to pay income first to your family for a number of years and then send the remaining trust funds to charity, we refer to it as a “Give It Twice.”

Advantages

   Use the whole value of your unused retirement account to pay your surviving spouse an income and to pay your children or other loved ones an income for a set amount of time.

   Create savings from the charity gift and an estate tax deduction.

   Encourage Becca to continue doing valuable philanthropic work.

How does it work?

   We are able to support you and your lawyer during the establishment of a charitable remainder unitrust.

   You fill out a beneficiary designation form for an IRA or other retirement account, designating the charitable trust as the beneficiary, and deliver it back to the account custodian.

   Your retirement account will be transferred to the charity trust by the custodian after your death.

   Your spouse, children, or other individual beneficiaries will receive income payments from the trust throughout their lifetimes, the period of their terms, or both.

   The trust’s remaining funds will be given to Becca once the payments are done.

Beneficiary Designation Gift

It is an easy and inexpensive way to contribute to help Becca. You can name us as the beneficiary of your life insurance policy, retirement account, investment account, or bank account.

Advantages

   Use your account as long as you need to continue.

   Obtain a charitable estate tax deduction.

   Streamline your preparations to save money on costly legal charges.

   Support the causes that are important to you.

   Reduce your family’s tax liability.

How does it work?

   Request a new beneficiary designation form to be sent to you.

   If you need assistance with your account or insurance policy, get in touch with your broker, banker, or insurance agent.

   Fill out the form, put your signature on it, then mail it to your broker, banker, or agent.

   Your account or insurance policy will be paid to or transferred to Becca in accordance with the beneficiary arrangement when you pass away.

IRA Rollover

A perpetual IRA charitable rollover has been established by Congress. Consequently, you are able to make an IRA rollover gift this year and in the future.

Advantages

   Avoid taxes on transfers from your IRA to our organization of up to $100,000.

   Make a donation that is exempt from the charitable contribution deduction cap.

   Contribute to advancing the objectives of our organization.

How does an IRA rollover work?

  To donate money from your IRA to us, get in touch with the administrator of your plan.

  Your IRA gift will be transferred directly to our organization to support the continuation of our work.

  Please be aware that charity rollover gifts from IRAs are not tax deductible.

Restricted Bequests

Please let us know if you are thinking about leaving a bequest but want to be sure that it is used for the intended purpose. We would be pleased to collaborate with you and your attorney to find charitable giving opportunities and assist you achieve your charitable goals.

We will also collaborate with your lawyer to draft the appropriate language to achieve your objectives. If you are leaving a restricted bequest, we advise that your lawyer include the following clause to give Becca flexibility should it no longer be possible for us to use your gift as you originally intended.

The Board of Directors of Becca may use the income and principal of this gift for whatever purpose or purposes it deems to be most closely related to the restricted purpose of my bequest if, in the Board’s opinion, it becomes impossible for Becca to use it to accomplish the restricted purposes of this bequest.

Bequest Language

You should consult with your attorney before making a bequest. Your attorney can assist you in incorporating a bequest to Becca into your estate plan. To assist you and your attorney, we have provided some basic bequest language.

1. Specific Bequest:

Bequest of a Specific Dollar Amount

I hereby give, devise and bequeath _________ and No/100 dollars ($DOLLARS) to Becca, a nonprofit organization located at 2300 Valley View Lane, Suite 375, Irving, TX, 75062 and Federal Tax ID #_________________, for Becca’s general use and purpose.

Bequest of Specific Personal Property

I hereby give, devise and bequeath DESCRIPTION OF PROPERTY to Becca, a nonprofit organization located at 2300 Valley View Lane, Suite 375, Irving, TX, 75062 and Federal Tax ID #_________________, for Becca’s general use and purpose.

Bequest of Specific Real Estate

I hereby give, devise and bequeath all of the right, title and interest in and to the real estate located at ADDRESS OR DESCRIPTION OF PROPERTY to Becca, a nonprofit organization located at 2300 Valley View Lane, Suite 375, Irving, TX, 75062 and Federal Tax ID #_________________, for Becca’s general use and purpose.

2. Percentage Bequest

We advise using the following statement if you are thinking about leaving Becca a percentage of your estate:

I hereby give, devise and bequeath ____ percent (___%) of my total estate, determined as of the date of my death, to Becca, a nonprofit organization located at 2300 Valley View Lane, Suite 375, Irving, TX, 75062 and Federal Tax ID #_________________, for Becca’s general use and purpose.

3. Residual Bequest

I hereby give, devise and bequeath to Becca, a nonprofit organization located at 2300 Valley View Lane, Suite 375, Irving, TX, 75062 and Federal Tax ID #_________________, ALL OR A PERCENTAGE of the rest, residue and remainder of my estate to be used for Becca’s general use and purpose.

4. Contingent Bequest

I hereby give, devise and bequeath to Becca, a nonprofit organization located at 2300 Valley View Lane, Suite 375, Irving, TX, 75062 and Federal Tax ID #_________________, ALL OR A PERCENTAGE of the rest, residue and remainder of my estate to be used for Becca’s general use and purpose.

Information About Will

Types of Bequests

There are a number of ways you can make a bequest to Becca.

1. Specific Bequest:

Specific bequests are made with a specifically decided asset, property or cash. For example, a specific bequest of real estate would be someone’s own home, their car, or $20,000 cash.

2. Percentage Bequest:

Percentage bequest is another type of specific bequest where a person plans on leaving a specific percentage of their asset or estate to Becca. A good example is a person leaving 20% of his estate to Becca.

3. Residual Bequest:

Specific bequests are made with a specifically decided asset, property or cash. For example, a specific bequest of real estate would be someone’s own home, their car, or $20,000 cash.

4. Contingent Bequest:

Conditional bequests are made for charitable purposes only if the purpose of the main bequest cannot be achieved. For example, you may bequeath a certain property to relatives but if that relative is no longer alive, the bequeathed property will then go to Becca.

Bequests

Bequests are one of the most common and easiest ways donors can choose to support a particular cause. This type of gift can be made according to your will or trust. It gives donors room to be flexible with their donations.

Bequests can be beneficial for a number of reasons. Some of them are;

   Donors can benefit from estate tax savings with bequests.

   Lasting legacy is established.

   The assets utilized to make the gift remain the same or grow during the donor’s lifetime.

How does it work?

One of the simplest gifts to make is a bequest. You can make a bequest via a beneficiary designation form, or with the assistance of an attorney, you can put language in your will or trust specifying a donation to be made to family, friends, or Becca as part of your estate plan.

This Includes:

   Include a bequest to Becca in your will or trust

   Designate Becca as a full, partial or contingent beneficiary of your retirement account (IRA, 401(k), 403(b) or pension)

   Name Becca as a beneficiary of your life insurance policy

There are various ways to leave a bequest:

   Make a gift of a portion of your estate using the percentage bequest method.

   Make a gift of a specific asset or money amount with a specific bequest.

   Make a donation from the remaining portion of your estate, called the residual bequest.

Process of Donor Advised Funds

   The first step towards initiating a DAF starts with you making an irreversible donation to facilitate a DAF at Becca. This gift can be in the form of cash or stock.

   The assets from the DAF you contributed for, start to grow without any tax liabilities.

   Donors can make yearly recommendations on the gifts to be made from the respective DAF.

   After the donor passes away, the process can be continued by the donor’s children.

Gifts allow us to build and rebuild schools around the world, provide books, and uniforms to children and equip those buildings with furniture. Many students face an unfortunate financial crisis during their educational life which makes it difficult for them to carry on with their studies. Hence, by providing them with the emergency financial help they won’t face these hardships.

We believe that financial issues faced by many families should not be the reason for someone to stop proceeding in life and achieving what they want and deserve. Hence, BECCA offers a family support program to those in need.

We strengthen the capacity of Baitulmaal which plays a vital role in providing humanitarian aid around the world. Fund implementation or expansion of proven approaches to significantly strengthen communities and support the culture around the world for a better tomorrow. We also work to fund emerging opportunities or innovative approaches with the potential for broad impact.

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