Planned Giving

 Planned Giving

Your gift of any size will help support the future of Taltree Arboretum and Gardens.

You can plan today to make a gift of estate assets to ensure that your charitable interests are supported, your financial objectives maximized, and to leave a legacy at the Arboretum.

Some creative and flexible options that can benefit you and the Arboretum include:

Charitable Remainder Trusts

Charitable Lead Trusts

Gifts and Bequests of Retirement Assets

Real Estate Gifts

Wills and Living Trusts

Stock and Appreciated Securities

 

You may benefit by:

 

Making a more significant gift than might otherwise be possible.

Receiving charitable deductions

Avoiding capital gains

Reducing your estate taxes

Increasing your cash flow

Passing on your family values and sustaining a legacy at Taltree Arboretum and Gardens.

 

The material presented here is not offered as legal or tax advice. We recommend you seek the advice of your estate advisor, attorney, and/or financial planner to make certain your considered gift fits well with your overall circumstances and planning.

 

Charitable Remainder Trusts

 

A charitable remainder trust is an agreement between a donor and a trustee that can provide fixed or variable income to meet the financial needs of the donor or another named beneficiary. At the termination of the agreement the remaining trust assets are passed on to Taltree Arboretum and Gardens.

 

How it works:

 

A charitable remainder trust is established when you transfer assets (cash, stock, or other securities) to the trustee named in a trust agreement. The trustee pays you (or whomever you designate as beneficiary in the trust agreement) income from the trust. Charitable remainder trusts are established for one or more lives, for a term of years not to exceed 20 years or a combination of the two.

After all of the income payments have been made from the trust, the trustee transfers the remaining trust assets to Taltree Arboretum and Gardens. The Arboretum can then use the assets to meet general purpose expenses or for a specific purpose that you have designated in the trust agreement.

Many charitable trusts are created to provide reliable income for the donor or the donor’s spouse/beneficiary. Payments will depend upon the kind of trust chosen —

1. a

 

charitable remainder annuity trust provides the beneficiary a fixed amount of money annually that remains constant for the term of the trust; or

2. a

 

charitable remainder unitrust provides the beneficiary a percentage of the total value of the assets in the trust, as revalued each year.


The material presented here is not offered as legal or tax advice. We recommend you seek the advice of your tax advisor, attorney, and/or financial planner to make certain your considered gift fits well with your overall circumstances and planning.

 

Charitable Lead Trust

 

Another type of charitable trust is a lead trust, which is set up for a limited period of time during which the income generated from the trust is transferred to Taltree Arboretum and Gardens. Upon completion of the time period, or maturity, the principal is returned to the donor or his or her designee.

 

You may benefit from Charitable Lead or Remainder Trusts by:

 

Increasing your income

Receiving a federal income tax deduction upon creation of the trust.

Avoiding capital gains taxes upon the transfer of appreciated property to fund the trust.

The creation of the trust reduces the property administered by your estate, possibly resulting in favorable estate tax treatment.

 

The material presented here is not offered as legal or tax advice. We recommend you seek the advice of your tax advisor, attorney, and/or financial planner to make certain your considered gift fits well with your overall circumstances and planning.

 

Gifts and Bequests of Retirement Assets

 

Many individuals hold a significant amount of their wealth in their tax deferred retirement account, such as an IRA or 401(k). Assets held in these accounts grow tax-free over time but when distributed are subject to income tax. The income tax liability occurs when the assets are taken out of the retirement account, either by the owner making a withdrawal of assets during life, or when the account is

distributed upon the account owner’s death. There are two exceptions that are important to note, the income tax liability is deferred if the owner’s spouse is named as the beneficiary of the account and the income tax liability is eliminated when a tax-exempt charitable organization is named as the beneficiary.

Naming Taltree Arboretum and Gardens as the beneficiary of your retirement account can be advantageous for both estate and income tax purposes. The Arboretum, as a tax-exempt organization, does not pay income tax when the assets held in the tax deferred retirement account are distributed to the Arboretum upon the death of the account owner. If the account owner’s estate is subject to estate tax, the estate receives an estate tax charitable deduction for the value of the account that names the Arboretum as the beneficiary.

By fulfilling charitable intent and naming the Arboretum as the beneficiary of a tax deferred retirement account, this will free up other assets that do not have a built-in tax liability for your other non-charity beneficiaries. It is a win-win situation for everyone.

It is important to note that in order to give a retirement account to the Arboretum upon death, you should complete a beneficiary designation form with the custodian of your retirement account.

 

The material presented here is not offered as legal or tax advice. We recommend you seek the advice of your tax advisor, attorney, and/or financial planner to make certain your considered gift fits well with your overall circumstances and planning.

 

Real Estate Gifts

 

The gift of real estate is a unique and meaningful way to support Taltree Arboretum and Gardens.

 

Retained Life Estate

 

You can enjoy the satisfaction of making such a gift during your lifetime — without affecting your current lifestyle — by a special arrangement called a retained life estate. You can donate your residence or second home to the Arboretum, continue to reside in, use or derive earnings from the property for life, and receive an immediate charitable tax deduction for the remainder value of the property (what the IRS estimates as the Arboretum’s future right in the property).

This type of gift may be appealing to you if you are contemplating leaving your property to the Arboretum through your will, but would like to transfer the gift now to receive the income tax advantages.

Lifetime Income

Real estate can also be a valuable asset when used to fund a lifetime income agreement such as a charitable remainder trust or charitable lead trust. As an example, appreciated property such as real estate or securities can be placed in a Trust designating the Arboretum as the beneficiary. The Trust may sell and reinvest the property, avoiding capital gains taxes, and pay a specified income to you for life. You are able to take an immediate charitable tax deduction upon transferring the assets to the Trust, avoid capital gains and remove the property from your estate, thereby potentially reducing estate taxes. You and your spouse or other designated beneficiary will receive a fixed percentage of at least 5% of the net fair market value of the contributed assets as annual income for life. Upon termination of the Trust, the remaining principal would be distributed to the Arboretum.

 

You may benefit by:

 

Obtaining an income tax charitable deduction equal to the property’s full market value (if held long term) instead of the lower cost basis

Reducing the cost of the making the gift and increasing your cash flow that would have been used to pay for taxes, insurance and upkeep.

Avoiding capital gains tax on the property’s appreciation as well as a gift tax

Reducing your overall taxable estate.

 

Wills and Living Trusts

 

You can support Taltree Arboretum and Gardens in your Will or Living Trust by arranging for the Arboretum:

to receive a gift of a specific amount;

to receive a percentage of your remaining estate;

to receive a gift of a specific asset (real estate, stocks, etc.); or

to be a contingent beneficiary in the event a primary beneficiary shall predecease you.

To make a gift to the Arboretum you simply include a provision in your Will specifying the type and/or amount you would like to give. Although the provision can be brief, the language necessary to accomplish your wishes is very important and should be prepared by your attorney.

 

The material presented here is not offered as legal or tax advice. We recommend you seek the advice of your tax advisor, attorney, and/or financial planner to make certain your considered gift fits well with your overall circumstances and planning.

 

Gifts of Stock or Appreciated Securities

 

If your investment portfolio includes low-yielding, highly appreciated stock or securities that have held for more than one year you may want to consider gifting them to Taltree Arboretum and Gardens. Appreciated property can include publicly traded stocks, bonds, mutual funds, closely held stock, commercial property, farms, personal residences or unimproved land.

 

You may benefit by:

 

Receiving an income tax deduction for the full market value of the gift as of the date of the transfer;

Paying no capital gains tax on the appreciation of your asset (the difference between your cost basis and current fair market value);

Making a generous charitable gift without reducing your liquid assets

Reducing your exposure to estate taxes

 

How to make a gift of securities to Taltree Arboretum and Gardens:

 

To avoid capital gains tax, ask your financial institution to contact our Finance Office at 219-462-0025 and we will provide wire transfer information to the donor or their agent if securities are being wired. All securities will be sold as soon as is reasonably possible. Your entire gift will be tax deductible and is effective immediately upon transfer at the fair market value of the securities on that exact date.

 

How to make a gift of real property to Taltree Arboretum and Gardens:

 

Please contact the Office of the President & CEO at (219) 462-0025. Prior to acceptance, gifts of property are inspected by the Arboretum or by an agent acting on its behalf to assess the condition of the property and to ensure that it is appropriate to the mission and resources of Taltree Arboretum and Gardens.

 

Disclaimer

 

The material presented on Taltree Arboretum and Garden’s web site is not offered as legal or tax advice. We recommend you seek the advice of your tax advisor, attorney, and/or financial planner to make certain your considered gift fits well with your overall circumstances and planning.