Planned Giving

Retirement assets are one of the greatest gifts you can give to the River Cities Humane Society for Cats. These funds grow tax-free until the time of withdrawal.  Many taxes on these plans can be avoided or reduced through a carefully planned charitable gift.

Gift through beneficiary designation. You can name the River Cities Humane Society for Cats as the beneficiary or contingent beneficiary of your retirement assets after your lifetime. When a retirement account is left to a charity, the organization does not pay any income tax whereas your heirs may pay income tax if they inherit your retirement funds. Your retirement plan’s administrator can provide a beneficiary form for you to name the River Cities Humane Society for Cats as your sole or partial beneficiary.

Charitable remainder trust after a donor’s lifetime. You can name a trust as the ultimate beneficiary of excess or unused retirement assets. After your lifetime, the trust can provide income to heirs for a period of years, after which time the trust monies can fund charitable endeavors. Since it is a charitable trust, there is more money available to generate income for heirs.

The material presented in this website is intended as general educational information on the topics discussed herein and should not be interpreted as legal, financial or tax advice. Please seek the specific advice of your tax advisor, attorney, and/or financial planner to discuss the application of these topics to your individual situation.

Life insurance is often overlooked as an asset that you can use to make gifts to the River Cities Humane Society for Cats. There are a number of ways to support our many programs with an insurance-related gift

Add a beneficiary to your policy. It is relatively simple to make a change to the beneficiary/beneficiaries of your insurance policy without changing your will or other aspects of your estate plan. Just ask your insurance company for a form that will allow you to make the River Cities Humane Society for Cats a beneficiary of your insurance policy.

Give a paid-up policy. You can transfer ownership of a paid-up life insurance policy to the River Cities Humane Society for Cats. After the transfer, the River Cities Humane Society for Cats can elect to either cash in the policy right away or keep the policy and receive the death benefit later. You would receive an immediate income tax deduction for either the cash surrender value or the basis (usually the cost), whichever is less.

Making the River Cities Humane Society for Cats the owner and beneficiary. You can take out a policy and make the River Cities Humane Society for Cats the owner and beneficiary of the policy. Premium payments can be made by you directly to the insurance company or by the River Cities Humane Society for Cats, by way of your annual gift to the organization. Whichever way the premiums are paid, you can take an income tax deduction.

A Charitable Remainder Trust (CRT) is a life-income arrangement that provides you and/or other beneficiaries with a stream of income for life or for a period of years. After the trust terminates, the principal, or “remainder interest,” goes to the River Cities Humane Society for Cats. Unlike other life-income arrangements, CRTs are separately invested and managed trusts. Please note that the River Cities Humane Society for Cats does not manage these trusts for donors.

This is the most flexible of life-income plans, and a powerful way for you to benefit along with your heirs and the River Cities Humane Society for Cats. Some versions of CRTs can be funded with closely held stock, partnership interests, real estate, and in some instances, tangible personal property such as works of art. You can choose to receive a variable or fixed income (beginning immediately) for life or a term of years. There is no limitation on the number of beneficiaries of a CRT.

CRT Benefits:

• When appreciated assets are donated to the trust, they can be sold without incurring capital gains tax, allowing the entire proceeds from the sale to be reinvested.
• You can receive a charitable income tax deduction in the year the gift is made, with an additional five years to carry over any unused deduction.
• You can add to certain types of CRTs at any time.
• Through reinvestment within the trust, you can achieve diversification of a previously concentrated asset.
• Any assets that you contribute to a CRT are immediately removed from your estate, reducing your estate tax exposure.

Basic Types of CRTs:

• Unitrust (CRUT): This type of trust pays a variable income based on a fixed percentage (for example, between 5 and 6 percent) of the trust assets, revalued once each year. One advantage of a unitrust is that your income can increase as the trust principal grows over time. This type of CRT allows you to make additional contributions at any time.
• Annuity Trust (CRAT): This type of trust pays a fixed annual income that is determined when the trust is established. The annuity trust is often preferred by those who are interested in the security of a constant return.

“Payable on death”(POD) or “Transfer on Death”(TOD) accounts name a beneficiary to receive the proceeds upon your passing. You do not have to change your will or work with an attorney or accountant. There are no fees to arrange such a gift. You simply complete the beneficiary form given to you by the financial institution with the information below. You retain complete control over the funds or assets in the account while you are living, and these gifts are completely revocable.