Planned Giving

Charitable Trusts are flexible planning tools that may be used to accomplish a number of personal and financial goals. Many choose to rely on trusts to provide for management of assets by someone they trust. Others make use of trusts to delay or otherwise manage the transfers of property to loved ones or others due to their age or other circumstances.

Here’s how a charitable remainder trust works:

• A trust is drafted by an appropriate advisor in consultation with those who will manage the trust.
• Assets are transferred to the trust to be managed by you or another person or entity you choose to be the trustee.
• Payments are made from the trust to you and/or others you name for life or other period of time you determine.

A charitable remainder annuity trust is a way to make a gift while ensuring a fixed, regular income. Income from such a trust can be a reliable income supplement in retirement years. The payments received each year will be 5% or more of the amount originally placed in the trust. You determine the exact amount when your trust is created.

Like the annuity trust, the charitable remainder unitrust provides for a gift to Dementia Alliance of North Carolina that allows a donor to first retain income for life or other period of time. But unlike the annuity trust, the income from a unitrust fluctuates over time with the value of the assets placed in the trust.

You determine the annual payment percentage when the gift is made. Each year this percentage (5% or more) of the value of the trust assets is paid to you or others you name. When the value of the investments increases, more income is received. The income will be less if the value of the trust assets declines. If provided for in the trust agreement, additions can be made to a unitrust and an additional tax deduction is allowed for part of any additional amounts contributed.

For those who would like to provide for an income that can grow over time, the charitable remainder unitrust can be an attractive option. Another benefit of charitable remainder trusts is the fact that no tax is payable by the trust at the time investment gains are realized, making it possible to enjoy increased income over time based on tax-free growth within the trust. This can be especially attractive to those who anticipate increases in growth in investments over time.

Giving through life insurance is one of the simplest ways to make a significant contribution to Dementia Alliance of North Carolina and to establish your legacy of giving.  You may do so in one of two ways:  1) You can designate Dementia Alliance as the primary or secondary beneficiary of either 100% or some percentage of the proceeds from the policy.  2)  You can transfer to Dementia Alliance ownership of the policy – either paid in full or fow which you continue making premium payments.  The transfer of the policy is a present gift for which a charitable tax deduction may be taken, and your continued payment of premiums is each considered a charitable contribution, deductible to the full extent of the law.

Retirement plan assets (those in qualified plans and IRAs) are ideal for charitable giving purposes because these assets are often heavily taxed when passed to non-spouse beneficiaries.  To make a future gift of retirement plan assets simply requires a designation of Dementia Alliance of North Carolina as the beneficiary of the plan.  Making a present gift of retirement account assets during your lifetime has been permitted under recent law for certain tax years; check with your tax advisor before making a gift of retirement plan assets.