Which Gift Plan is Best?

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