Estate Gift Planning

Help Others Through Gift Planning

Gift planning services provide ways to make significant or lasting gifts that meet your philanthropic needs. They can also offer attractive ways to reduce your taxes or receive income during your lifetime.

Learn more about:

• Endowments
• Bequests
• Stocks and Appreciated Securities
• Life Insurance Gifts
• Pension Funds, Life Insurance & IRA Beneficiaries
• Charitable Gift Annuities
• Charitable Trusts
• Emergency Economic Stabilization Act of 2008-2009

Endowments

So just what exactly is an Endowment and how can this funny sounding word help Lake Avenue Community Foundation now and in the future?

An Endowment is a faith-directed financial gift made to Lake Avenue Community Foundation (LACF). One way to give is through your Estate Plan. The endowment is designed to fund and provide on going financial resources for LACF to meet the needs of at risk youth, their families and other needs within our community.

An Endowment funded project may include but not be limited to continuing education, local neighborhood projects, evangelism, capital building and maintenance projects and support for future expansion and ministry growth of LACF.

When and How May I Give to the Endowment Fund?

You can do any of the following to support the fund:

• Give gift of Securities, Real Estate, Life Insurance, Property or Cash directly at any time.
• Designate the Endowment Fund as a beneficiary of your Life Insurance Policy.
• You can arrange for your Living trust to make a distribution upon your death.
• Through a Charitable Trust, you may designate the Endowment Fund as beneficiary of your gift while you receive income for the duration of your life.
• Be sure to have your legal/financial advisors designate by will that your contribution take effect upon your passing.

Why Would You Want to Support LACF’s Endowment Fund?

You might choose to honor a special person or event, major accomplishment or the memory of someone special to you. Or, sharing just a little more of what God has so generously blessed you with is just one other reason to support LACF. Your gift is providing for a legacy of hope and help for all were doing to make a difference in the lives of at risk youth in our neighborhood.

How Do You Benefit from Endowing LACF?

Certainly there is the benefit of potential significant tax benefits to you and your heirs but more importantly is the joy and satisfaction you will experience knowing firsthand that your support is providing hope for children for years to come.

Thank You for your consideration in helping to shape and build the future of LACF through your financial support . . . support that will continue to reach out touching the lives of thousands of at-risk children and young adults in our community for years to come!

To learn more about exciting ways to support the Foundation, please contact Nancy Stiles at 626.298.0103 or email nancys@lakeave.org

Bequests

Gifts given through your Will or Trust naming Lake Avenue Community Foundation as one beneficiary of your estate. Gifts are typically given as a percentage, fixed amount or residual of the estate.

Show/hide our suggested Bequest Language

Stocks & Appreciated Securities

Gifts transferred directly to us prior to sale can avoid capital gains taxes and offer a deduction for the entire worth.

Show/hide our Stock Transfer Instructions

Life Insurance Policy Donations

A great way to give a really big gift to a charity without spending a lot of money. Here’s how it works:

• A donor works with us and a life insurance company to purchase a life insurance policy with a cash value and death benefit and names us as the policy holder.
• The donor agrees to make tax deductible donations to charity for the purpose of paying the policy premiums until the policy is paid in full.
• The donor takes a tax deduction for each gift used to purchase the life insurance policy in the year the gift was made.
• The charity owns the policy and can either redeem it for cash value or wait until the insured has passed and receive the full death benefit.

To learn more about your tax and income benefits by supporting the Foundation contact Nancy Stiles at 626.298.0103 or email nancys@lakeave.org.

Beneficiary of Pension Funds, 401K, Life Insurance Policies, & IRAs

To name Lake Avenue Community Foundation as your beneficiary, simply request a change of beneficiary form from your life insurance company. Please return the form directly to your company, and send us a copy for our records to Lake Avenue Community Foundation 712 East Villa Street Pasadena, California 91101.

To learn more about your tax and income benefits by supporting the Foundation contact Nancy Stiles at 626.298.0103 or email nancys@lakeave.org.

Charitable Gift Annuities

Did you know a Lake Avenue Community Foundation Charitable Gift Annuity provides you with a very unique way to perpetuate your beliefs and values beyond your own time . . . by providing much needed financial support to the Foundations programs and service’s long after you’re gone?

Through a charitable gift annuity, you can receive a tax deduction, earn a fixed income each year for the rest of your life, and name Lake Avenue Community Foundation as the beneficiary of any principle after the lifetime of the annuitants. Many people find this to be an attractive way to supplement their retirement income. You can choose to purchase an annuity for you or someone you love or you can purchase it for two lives. With rates as high as 6.6% (based on your age) and the ability to fund a gift annuity with stocks, bonds or cash, this may be an attractive opportunity for you.

The Gift Annuity Benefits include:

• Guaranteed High Rates!
• Guaranteed Annual Payments for life!
• Potential Reduction of Capital Gains and Estate Taxes!
• Potential Income Tax Deductions!
• Part of Your Annual Income is Tax Free!
• No Commissions!

SAMPLE GIFT ANNUITY RATES (subject to change)

One Life Annuity		Two Life Annuity
Age	Rate	Age	Rate
65	4.7%	65/70	4.5%
70	5.1%	70/75	4.8%
75	5.7%	75/80	5.2%
80	6.6%	80/85	5.6%
81+	Call

As you can see, you can enjoy an annual fixed rate as high as 6.6% on your gift of $15,000 or more based on your age. A portion of your annual payment is tax free and you may even be eligible to take a significant tax deduction on your gift as well! (Rates subject to change)

To learn more about this exciting opportunity of earning guaranteed annual payments and take advantage of potential tax benefits, and help Lake Avenue Community Foundation as well, contact Nancy Stiles at 626.298.0103 or email nancys@lakeave.org.

Charitable Trusts

There are a number of different kinds of Charitable Trusts. All are non-revocable trusts that can either provide you or someone you love with payments during your lifetime, or it can reserve your funds – while eliminating or reducing certain taxes – until passed on to your heirs. Assets from the trust protect or ensure your payments rather than the charity, making trust administration an important consideration for these gifts. A Charitable Trust can name survivors and delineate Lake Avenue Community Foundation as the beneficiary and/or trustee. Many people find this to be an attractive way to supplement income, and to benefit younger survivors. With the ability to fund a trust with stocks, bonds, cash or real estate, this may be an attractive opportunity for you.

A Charitable Remainder Trust can offer an income each year for a fixed term either with a fixed rate (charitable remainder annuity trust) or with a variable rate that resets annually (charitable remainder unitrust). Either trust makes payments to you during your lifetime and reserves the remaining trust principle for the charity.

A Charitable Lead Trust gives assets to the charity of your choice during your lifetime, and makes payments to the charity. Upon death, the principle is returned for distribution to your heirs.

To learn more about your tax and income benefits by supporting the Foundation contact Nancy Stiles at 626.298.0103 or email nancys@lakeave.org.

Emergency Economic Stabilization Act of 2008 benefits IRA Distributions!

In October 2008, the House approved and President Bush signed a historic $700 billion bailout or rescue plan. The legislation implementing the plan contains important provisions relating to charitable giving.

The Emergency Economic Stabilization Act of 2008, the main feature of which is the bailout package, also extends certain portions of the Pension Protection Act of 2006 that expired on 12/31/2007. The centerpiece of the legislation from a gift planning perspective is the IRA Rollover.

This law provides that, in each of the years 2008 and 2009, an owner of a traditional or Roth IRA may instruct the trustee to distribute directly to a public charity up to $100,000 without the distribution being included in taxable income, and that distribution will count toward the IRA owner’s mandatory withdrawal amount.

To qualify for IRA rollover treatment, the donor must direct the IRA manager to transfer funds directly to a charity. A withdrawal followed by a contribution will still have to be reported as income. The donor must be at least age 70 ½ and the donee must be a tax-exempt organization to which deductible contributions can be made. Donor-advised funds and supporting organizations are not eligible.

This law does not include the terms of proposed legislation such as the Public Good IRA Rollover Act. Therefore, the gift must be outright; rollovers to a planned gift, such as a gift annuity or a charitable remainder trust, do not qualify. Similarly, outright distributions to a charity from employer-sponsored retirement plans, such as Simple IRAs, 401(k)s, and 403(b)s, do not qualify. Also note that IRA rollovers may be includable in a donor’s income for state and local tax purposes and may not earn an offsetting charitable deduction, depending on state and local law.

To learn more about your tax and income benefits by supporting the Foundation contact Nancy Stiles at 626.298.0103 or email nancys@lakeave.org.