Which Gift Plan is Best?

This information is not intended as legal advice.

Consult with your tax attorney.

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IF YOU WISH TO:

Make an outright gift of cash or assets

  • Best Choice: Appreciated Securities, Real Estate
  • Next Choice: Cash
  • Income Tax Deduction: High (market value of property)

Retain full control of income and principal

  • Best Choice: Fraction of IRA or Qualified Plan
  • Next Choice: Bequest in Will
  • Income Tax Deduction: Heirs save income taxes if IRA

Convert property to high income - guaranteed

  • Best Choice: Charitable Annuity Trust
  • Next Choice: Gift Annuity
  • Income Tax Deduction: High (present value of remainder)

Convert property to high income - variable
(possible offset to inflation)

  • Best Choice: Charitable Unitrust
  • Next Choice: -- --
  • Income Tax Deduction: Medium (present value of remainder)

Preserve income during spouse's lifetime

  • Best Choice: Testamentary Unitrust
  • Next Choice: QTIP Trust
  • Income Tax Deduction: None

Make sizable gift with modest annual payments

  • Best Choice: New Life Insurance
  • Next Choice: Existing Life Insurance
  • Income Tax Deduction: Annual deduction for annual premium

Make a gift but retain options

  • Best Choice: Fraction of IRA or Qualified Plan
  • Next Choice: Bequest in Will
  • Income Tax Deduction: Heirs save income taxes if IRA

Provide a retirement plan with maximum income

  • Best Choice: Deferred Payment Gift Annuity
  • Next Choice: Charitable Unitrust
  • Income Tax Deduction: High (present value of remainder)

Provide a guaranteed education plan for children or others

  • Best Choice: Deferred Payment Gift Annuity
  • Next Choice: Charitable Unitrust or Annuity Trust for a term of years
  • Income Tax Deduction: High (present value of remainder)

Provide a deferred gift of your home or farm and retain the use of it during your lifetime

  • Best Choice: Life Estate Contract
  • Next Choice: ----
  • Income Tax Deduction: High (present value of remainder)

Make a sizable gift now and transfer asset to children or grandchildren later

  • Best Choice: Charitable Lead Trust
  • Next Choice: ----
  • Income Tax Deduction: None
none