Planned Giving

It is never too early to get your affairs in order…although it can sometimes be too late.  If you want things to be just the way you want them to be, the key is on-going review and sound planning.

Including philanthropic planning.

Planned Gift can be a simple bequest in your will or a complex trust arrangement.  Planned giving tools and techniques can:

    • Provide current income and a charitable gift later
    • Reduce income, capital gain and/or estate taxes
    • Establish a future philanthropic fund

Among the most common Planned Gifts are:

    • Bequest in a Will
    • Charitable Gift Annuity
    • Charitable Remainder Trust
    • Life Insurance
    • Retirement Account
    • Charitable Lead Trust
    • Life Estate Arrangement

Take a moment to scroll down this page to learn more about these charitable options, many of which benefit both the donor and beneficiary.

A BEQUEST IN YOUR WILL

A bequest in your will is one of the simplest ways to make a charitable gift.  Through a bequest, you may make a contribution to an existing fund or establish a new named fund.  Either option ensures that your charitable wishes will be carried out, benefitting South Snohomish County forever.

Suggested Language in your Will 

I give and bequeath to Lynnwood Rotary Community Foundation (a stated sum OR a stated percentage of estate OR all the residue of my estate OR a specific asset) which I own at the time of my death or over which I have power of disposition.

The Lynnwood Rotary Community Foundation shall administer said trust estate for the sole benefit of, and in accordance with, the provisions of its Articles of Incorporation and any amendments or additions thereto at the time made.  (Add appropriate language from the choices below…)

For a new Unrestrictred Fund in your Will

The fund so established shall be known as the (NAME OF FUND) Fund of the Lynnwood Rotary Community Foundation.

For an addition to an existing fund in your Will

I direct that this distribution be added to and become part of the (NAME OF FUND) held and administered by the Lynnwood Rotary Community Foundation in accordance with the provisions of the agreement establishing said fund.

For a new Field of Interest Fund in your Will

The fund so established shall be known as the (NAME OF FUND) Fund of the Lynnwood Rotary Community Foundation.  The spendable income from this fund shall be used for the purpose of (explain purpose of fund).

For a new Designated Fund in your Will

The fund so established shall be known as the (NAME OF FUND) Fund of the Lynnwood Rotary Community Foundation.  The spendable income from this fund shall be distributed to the (names of recipient organizations) so long as said entities shall be tax exempt under Section 501 (c) (3) of the Internal Revenue Code as amended.

For a combination of purposes via your Will 

The spendable income from a fund established by this bequest may be divided among a combination of purposes.  The instrument should specify percentages for each.  For example:

 

25% of the spendable income from this fund shall be used for the unrestricted charitable purposes of the Yakima Valley Community Foundation.

25% of the spendable income from this fund shall be used for the purpose of providing opportunities for disadvantaged youth.

25% of the spendable income from this fund shall be used for the purpose of promoting the visual arts in Yakima County.

25% of the spendable income from this fund shall be divided evenly between (name organizations), so long as said entities shall be tax exempt under Section 501(c) (3) of the Internal Revenue Code as amended.

 

CHARITABLE GIFT ANNUITY

Charitiable Gift Annuity is a simple contract between the donor and Lynnwood Rotary Community Foundation.  In exchange for an irrevocable gift of cash or securities, the Foundation agrees to pay you (or you and your spouse) a fixed sum each year for your lifetime.  Annuity payments are based on a standard rate table.  The older the annuitant(s) at the time of the gift, the greater the income stream available.

 

After the death of the last annuitant, the annuity’s principal establishes (or is added to) an endowment fund at the Foundation, supporting the charitable causes you designate.

 

CHARITABLE REMAINDER TRUST

A Charitable Remainder Trust allows the donor to receive income for life from his or her gift, with full assurance that the trust will eventually be used by the Lynnwood Rotary Community Foundation to address the charitable interests of the donor.  The donor receives an immediate income-tax charitable deduction.

 

An Annuity Trust pays donors a fixed dollar amount annually, based on a percentage of the fair market value of the assets placed inthe trust.  The payout amount remains constant, regardless of the increase or decrease in the trust assets.

Charitable Remainder Unitrust pays a percentage of the fair market value of the assets in the trust as re-valued annually.  If the value of the assets increases, trust payments also increase.  If the trust value declines, so will the payout.

Donors select the person or persons to receive trust income.  The donor can keep all the income, or it can be paid to the donor and another person for their joint lives.  When the trust ends at the death of the income beneficiary (or at the end of a term of years), assets remaining in the trust establish a charitable fund.

LIFE INSURANCE
Life Insurance is an easy way to make a significant contribution.  You may give a policy that is no longer needed, take out a new policy or name the Yakima Valley Community Foundation as a beneficiary of an existing policy.  Depending on the arrangement you choose, an immediate tax deduction and/or estate tax deduction may be available.

RETIREMENT ACCOUNT
Qualified retirement plan accounts, including IRA’s, are subject to federal and state income tax as well as estate tax.  Recent law changes have made it easier to use these assets for the charitable causes that you most care about while still addressing the needs of your family.

CHARITABLE LEAD TRUST
This type of trust provides income to your charitable fund for a fixed number of years.  At the end of the term, the remaining assets in the trust are returned to you or your heirs.  This is a gift that works best for donors with relatively large estates, and significant income-producing assets.

LIFE ESTATE ARRANGEMENT
You may make a gift of your residence or vacation home to the Yakima Valley Community Foundation and continue to live in the home for your lifetime.  You will be entitled to a charitable deduction in the year that the property is deeded to the Foundation and the property is removed from your estate for estate tax purposes.  Upon your death, the Foundation will sell the property and use the proceeds for the charitable purposes you have specified.

LRCF will work with your professional advisors to devise a plan that will achieve your charitable objectives in the most efficient and tax-advantaged manner.