Life Income Plans
- Charitable Gift Annuity
A charitable gift annuity is a contract, a guaranteed payment in return for a gift. You make a charitable contribution to the National Multiple Sclerosis Society's Long Island Chapter and, in return, the Society promises to pay a fixed dollar amount, based on your age, for life. At the end of the annuitant's life, the remaining principal benefits the work of the Chapter.
Minimum contribution for donors age 50 through 59 is $10,000. Donors age 60 and over may make an initial contribution of $5,000 or more.
The donor also benefits from a charitable tax deduction for a portion of the gift.
For more information or to calculate the benefits of an immediate gift annuity, contact Pam Mastrota, President & CEO at 516.740.7227 or 631.864.8337 or email firstname.lastname@example.org.
- Charitable Remainder Trust
A Charitable Remainder Trust (CRT) is a gift trust to the National Multiple Sclerosis Society's Long Island Chapter. The trust income is paid to beneficiaries for their lifetime or for a term of up to 20 years. After that time, the principal is paid to charity. You may tailor the annual income from the trust to be a fixed amount or a percentage of the principal's value. You may also decide the payout rate you want to receive as long as there is an actuarial probability that at least 10% of the principal will be left for charity at the time of your death.
There are two types of charitable remainder trusts:
Unitrust: income fluctuates annually with the fair market value of the trust.
Annuity Trust: income payments are fixed and determined when the gift is made.
Advantages of a Charitable Remainder Trust:
- You receive income for life.
- You avoid capital gains tax if trust funded with appreciated securities.
- You receive immediate charitable income tax deduction.
- You receive the possibility of reducing your estate taxes.
- You have satisfaction of supporting the National Multiple Sclerosis Society, Long Island Chapter.
- Charitable Lead Trust
Rather than distributing lifetime income to the donor, the Charitable Lead Trust provides income to the Chapter for a specified period. After that time, the principal passes to the donor or the donor's beneficiaries, such as children or grandchildren. A Charitable Lead Trust can provide income to the Chapter and also save estate or gift taxes, as well as generation-skipping transfer taxes. It is an excellent way for a donor to transfer substantial assets to younger generations at values reduced from their present estate-taxable value.
The Attorney's Role
The services of an attorney whose practice is devoted exclusively or largely to estate and charitable gift planning are essential in drawing up or revising a will, establishing a charitable remainder trust, or advising you in the best estate-planning strategies. Your wishes pertaining to your heirs, charitable contributions, minimization of estate taxes, personal income needs and other estate planning issues are best addressed by professionals who are well-versed in estate and tax law.
For additional information or personal assistance, please contact Pam Mastrota, President & CEO at 516.740.7227 or 631.864.8337 or email email@example.com.