Planned Giving

Bequests

A bequest through a will or trust is the most common form of planned gift. A bequest allows you to make a substantial contribution to support the mission without diminishing the assets available to you during your lifetime. Because a bequest to Backstreet Missions is tax deductible for federal estate tax purposes, important estate tax savings can result, and your federal estate tax burden may be reduced or eliminated.

Life Insurance

Gifts of life insurances can offer an attractive way to benefit the mission at a relatively low cost; gifts of new or existing policies may also provide tax benefits. A gift of life insurance may be especially attractive for a young person due to the lower premium expense. For example, the children may be grown, there may be no mortgage remaining on the family home, or a spouse may have other assets for support. In these situations, donating an existing policy may be a wonderful way to support Backstreet Missions.

Income Producing Gift Options

Some planned gift opportunities can greatly assist the mission in meeting its needs and objectives while also producing an income for you or your loved ones. There are many tax benefits with these powerful planning tools.

A. Charitable Remainder Trust

A charitable remainder trust provides income to you or named beneficiaries during life. Payout rates are negotiated with the board of directors. After the death of named beneficiaries, the trust assets are transferred to the mission and are used for the purpose you designate.

Charitable Remainder Unitrust - provides variable payments to the life income beneficiary or beneficiaries. The annual payments are based upon a percentage (at least 5 percent) of the annually predetermined fair market value of the assets in the trust.

Charitable Remainder Annuity Trust - provides the named beneficiary or beneficiaries with a fixed specified sum each year that cannot be less than 5 percent of the initial value of the gift placed in the trust.

B. Charitable Gift Annuity

A charitable gift annuity is a simple contractual arrangement between you and Backstreet Missions. A gift annuity provides a guaranteed fixed sum each year for the life of the beneficiary or beneficiaries. The payout rate is negotiated with the board of directors and is based on such factors as the age of the beneficiary(ies) and the value of the asset used to purchase the annuity. A charitable gift annuity offers many tax benefits, and part of each year's annuity payment is treated as tax free income.

Charitable Lead Trust

Charitable lead trusts allow you to contribute assets to a trust for a specified period of time. With this trust arrangement, Backstreet Missions receives income in support of the mission from the trust as a gift. The assets are later returned to you or your heirs when the trust terminates. The main advantage in creating a lead trust is to reduce federal estate taxes when transferring property to heirs.

Retained Life Estate (Real Estate)

A special provision in the federal tax law allows you to give a personal residence (including a vacation home) or farm to Backstreet Missions and still retain the full use and enjoyment of the property. You would continue to be responsible for the property's maintenance, insurance, and taxes. This retained right to use and live on the property can be for your lifetime or for the lifetime of you and another person. Substantial income tax and federal estate tax benefits may be realized with this type of planned gift.

Retirement Plan and IRA Designations

Many individuals have amassed large sums of money in their retirement plans and their IRAs. The federal government's tax structure places a heavy tax burden on these assets at the time of one's death, especially if you wish to pass these assets to your children. If you name your children as beneficiaries of your qualified retirement plan or IRA, substantial income and estate taxes may be assessed. The total combined tax burden can exceed 80%. In other words, your family would receive only 20% of the retirement plan or IRA. The solution has often been to name a charitable remainder trust as the beneficiary of your retirement plan or IRA. Your children can receive income from the charitable remainder trust and significant taxes can be avoided. This gift vehicle can leave your estate in much better financial position.

You can also volunteer with us, please contact Linda Kelley at (812) 333-1905 for more information.