LegacyTree Foundation ("LTF") offers simplified charitable planned giving programs that we call "LegacyPlans", which enable families and individuals to reposition assets that they already own, such as securities, real estate and existing annuities, in order to create new benefits for themselves and their heirs. These include generating an income tax deduction, reducing capital gains taxes and estate taxes, creating an income stream for themselves or their heirs, while supporting their favorite charitable causes.

By working through a 501 (c)(3) non-profit organization such as LTF, ordinary families are able to benefit from provisions in the tax code that many thought were only available to very wealthy individuals. The chart below summarizes the features and benefits of LTF’s two most popular LegacyPlans.

 

CGA LegacyPlan *
(Charitable Gift Annuity)

CBIC LegacyPlan**
(Charitable Bargain Sale with Installment Contract)

Description

Provides tax-favored, lifetime fixed income for one or two individuals

Provides tax-favored, fixed installment payments for a specified number of years
Term of years payout to client and/or beneficiaries

Payout Options

Immediate or Deferred

Flexible Deferred (payments can begin anytime after 1 year)

Immediate or Deferred

Flexible Deferred (payments can begin anytime after 1 year)

Income Tax Deduction

Immediate tax deduction for current year with 5 year carry forward, if needed

Immediate tax deduction for current year with 5 year carry forward, if needed

Capital Gain Reduction

A portion of the gain is eliminated

Remainder amortized over life of income stream

A portion of the gain is eliminated

Remainder amortized over life of income stream***

Taxable Estate Reduction

Asset is removed from estate (one life or married couple)

If 2nd annuitant is not spouse, asset is partially removed from the estate

Gift portion of asset is removed from estate

Only present value of future income payments is included in estate


*IRC §501(m)(5)

**IRC §453 and 26 CFR §1.1011-2

*** When transferring publicly traded securities, remainder of gain must be recognized in year of sale. Both products are not available in all states. Not FDIC insured or insured by any federal or state government agency. This is educational information and is not intended to be legal or tax advice. Individuals should seek tax, legal or financial advice from an independent professional advisor.