Leaving a legacy in your Will or Living Trust is one of the most popular ways to make a difference in your community.  If you already have a Will or Living Trust, a very simple 2 or 3 page amendment (or “codicil”) can be prepared to implement your bequest. 

A bequest can be as simple as a lump sum or a more complicated contingent bequest which distributes assets to New Vista Community only under certain circumstances such as if all your children predecease you.

Have a “child” named “Charity”.  One option for making a charitable bequest is to “adopt” New Vista Community as an equal partner with your children or grandchildren.  An example of the bequest language would be:

“When the youngest living child attains age 25 or dies before then, Trustee (or Personal Representative) shall distribute the remaining trust funds in equal portions, one portion to each child who is then living, one portion to the issue, by right of representation, of each child who has died leaving issue then living, and one portion to New Vista Community of Las Vegas Nevada.”

New Vista Community will be happy to provide your attorney with sample language for any type of bequest you wish.  Contact us

GIFT OF LIFE INSURANCE

There are three basic choices in making a charitable gift of life insurance:

1. You may give an existing policy by assigning ownership to New Vista Community and making them the beneficiary.  The policy may be “paid up” or require continuing premium payments.  You will receive a charitable income tax deduction for the value of the policy and any subsequent premium payments.

2. You may apply for a new policy on your life, with New Vista Community as the original policy owner and beneficiary.  You will receive an income tax deduction for all premiums paid on the policy.

3. You may designate New Vista Community as the beneficiary of a policy that you continue to own.  This will not produce an income tax deduction at the time the beneficiary designation is made, but it will result in an estate tax charitable deduction for the death proceeds payable to New Vista Community.

The gift of a life insurance policy is a popular planned giving technique because you can make a large bequest for relatively small payments.  For more information on this planned giving technique, Contact us

GIFT OF RETIREMENT ASSETS (IRA, 401k etc.)

Retirement assets left to heirs may be subject to a crippling double taxation.  Unlike most other assets, retirement assets do not receive a “stepped up basis” at an individual’s death.  As a result, retirement assets are first subjected to income taxes (e.g. 35%) and the remaining balance may then be subjected to estate taxes of up to 55%!

Designating New Vista Community as the beneficiary of retirement assets avoids both taxes because the individual’s estate receives both an income tax deduction and an estate tax deduction for all amounts payable to New Vista Community.  For more information on this planned giving technique, Contact us

CHARITABLE GIFT ANNUITY

A Charitable Gift Annuity is a contract to transfer cash or other property to New Vista Community in exchange for their promise to make fixed annuity payments to one or two persons for their lifetimes.  Payments can begin immediately or can begin on a future date that you select.

When you create a charitable gift annuity, you may qualify for a current income tax charitable deduction for a portion of your transfer. In addition, your annuity payments will receive favorable income tax treatment.  Depending on the type of asset you contribute, a portion of your payment may be taxable to you as a combination of ordinary income, long-term capital gain and a tax-free return of principle.

Charitable Gift Annuities can be funded with certain appreciated assets.  When New Vista Community sells the appreciated assets they do not have to pay capital gains taxes.  This results in more funds being available to finance your annuity payment.

Charitable Gift Annuities are also an excellent way to convert low income producing assets (such as certificates of deposit) into a much larger annual income payment.

To calculate your own annuity amount and income tax deduction click here.  

LIFE ESTATE AGREEMENT

A Life Estate Agreement is an arrangement whereby you transfer title to your home, farm, or yacht to New Vista Community while retaining the exclusive right to live in and use the property for a period of time specified in the gift agreement. At the conclusion of the measuring term, all rights in the property, called the remainder interest, are owned by New Vista Community who will then sell the property.

Life estate agreements can be measured by the life of one or more individuals, by a fixed term of years, or by a combination of the two. They are, however, most frequently established to operate for the life or lives of the owners of the contributed property.

Life estate agreements are ideal planning vehicles for individuals who desire to make a gift of property to charity now and enjoy current tax benefits, yet retain the use of the property for their lifetimes or other term of their choice.

The main advantage of the Life Estate Agreement is the immediate income tax deduction which is lost if you merely leave the property to charity at your death.  To calculate the immediate income tax deduction available to you, click on lives or term.

CHARITABLE REMAINDER TRUST

A Charitable Remainder Trust (CRT), is a custom designed and individually managed trust to which you transfer cash or other assets that you would like to convert into an income stream. The trust is tax-exempt; therefore, when it sells any appreciated assets, it pays no ordinary income or capital gains tax.  This leaves all of the value to reinvest for income production.  The second major benefit of the CRT is the income tax deduction for a significant portion of the assets transferred.

The trust, which you may control, manages the trust assets and pays you (and your spouse or others) an annual income for life, a term of years, or combination, after which, the trust assets are distributed or held for the benefit of New Vista Community.  

 Charitable Remainder Annuity Trust (CRAT)

Selection of the annuity rate is very important. The maximum annuity rate that should be set is one that the trust assets can comfortably earn.  The selection of the annuity rate has a direct effect on the income tax deduction provided.  The higher the annuity rate, the lower the income tax deduction.  Because the charity bears the investment risk in a CRAT, the income tax deduction is often lower than the deduction from a similar CRUT.

To calculate example income tax deductions at various annuity rates select lives or term.

Charitable Remainder UniTrust (CRUT)

If the investment return each year exceeds the payout rate, the annual unitrust amount will increase.  Conversely, if the payout rate exceeds the annual investment return, the unitrust amount will decrease.  Because you bear the investment risk, the income tax deduction is often higher than a similar CRAT.

Also unlike the CRAT, you may make multiple contributions of assets to a CRUT.  Perhaps most importantly, a CRUT can be drafted to defer and accumulate income tax free until whatever time frame you choose.  This feature makes a CRUT an excellent retirement planning tool.

To calculate example income tax deductions at various payout rates select lives or term.

WEALTH REPLACEMENT TRUST

Many individuals shy away from using Charitable Remainder Trusts (CRTs) because they fear the charitable gift may compromise the financial security of loved ones.  The wealth replacement trust allows individuals to accomplish both goals: providing for beneficiaries and giving to New Vista Community.

The wealth replacement technique uses a charitable remainder trust (CRT), a life insurance policy, and an irrevocable life insurance trust (ILIT).  The CRT pays income to you for life or a term of years.  You also receive a large income tax deduction.

You then set up the ILIT and the trustee purchases a life insurance policy on you in an amount equal to the property transferred to the CRT.  Using a portion of the annual payments from the CRT, you make annual gifts to the ILIT using the annual gift tax exclusion.  The trustee uses these annual gifts to pay the premiums on the life insurance policy.

At your death, two things happen.  First, New Vista Community receives a substantial gift at the termination of the CRT.  Second, the ILIT receives the insurance proceeds income, gift and estate tax free. 

For more information on this giving technique, Contact us

 CHARITABLE LEAD TRUST

A Charitable Lead Trust is essentially the reverse of the Charitable Remainder Trust. It is a custom designed and individually managed trust to which you transfer cash or other income producing assets. The trust pays an annual amount to New Vista Community for a fixed period of years, the lives of one or more individuals, or a combination of the two; after which, the trust assets are paid to one or more individuals named in the trust. The present value of the total payments to New Vista Community constitutes a charitable deduction for gift and estate taxes allowing you to make greater gifts or bequests to your heirs.

A Charitable Lead Annuity Trust (CLAT) pays an amount each year equal to a fixed percentage of the fair market value of the trust’s assets on the date they are transferred to the trust.  The resulting annuity amount is distributed each year regardless of fluctuations in the annual value of the trust’s assets.

Selection of the annuity rate is very important.  The higher the annuity rate, the higher the gift or estate tax deduction.  Because the trust bears the investment risk in a CLAT, the gift or estate tax deduction is often higher than the deduction from a similar CLUT.

To calculate example gift or estate tax deductions at various annuity rates select lives or term.

 A Charitable Lead Unitrust (CLUT)

If the investment return each year exceeds the payout rate, the annual unitrust amount will increase.  Conversely, if the payout rate exceeds the annual investment return, the unitrust amount will decrease.  Because New Vista Community bears the investment risk, the gift or estate tax deduction is often lower than a similar CLAT.

To calculate example gift or estate tax deductions at various payout rates select lives or term.