Gift Planning Options

Outright gifts for Current Benefits

Two kinds of current outright gifts provide you with immediate tax benefits and are made during your lifetime ‒ cash and appreciated property.

A cash gift is easy, convenient and tax deductible if you itemize. Up to 50% of your adjusted gross income may be charitably deducted with a five-year carryover of any unused deduction.

Appreciated property—including publicly traded stock, closely held stock, bonds and real estate—have the potential for double tax benefits. The full value of your assets are usually deductible with no capital gains tax paid on the appreciation.

When contributing appreciated property instead of selling, you may deduct the full fair market value of your gift. However, your deduction is limited to 30% of your adjusted gross income with a five-year carryover.

If you are considering a gift of appreciated property, enlist the counsel of your personal tax advisor and/or the staff of the Ministry Support Office to insure you receive the maximum benefits allowed.

Will Bequests for Simplicity

A will bequest is a simple, effective and lasting way of sharing your love with your loved ones and the organizations you care for. Bequests made to Long Beach Rescue Mission Foundation are deductible for federal estate tax purposes. State inheritance and estate tax savings (which vary from state to state) may also result in additional savings.

To insure that your will is properly drawn and executed according to the laws of the state you live in, it is important to consult with a competent attorney.

Revocable Living Trusts for Possible Changes

The revocable living trust lets you plan for the needs or your loved ones and allows you to change your trust if your needs change. The revocable living trust allows transfer of assets of almost any kind, revocation at the donor’s request, avoidance of probate, faster distribution, reduction of administrative expenses and assurance of privacy.

As the estate owner, you may serve as trustee (the manager of the trust) or you may name another individual or bank trust department to be trustee or co-trustee. In the case of the disability or death of the trustee, the living trust allows for simplified transfer of management to a successor trustee.

Life Insurance for a Greater Gift

A gift of life insurance can allow you to give a gift that is larger than you might believe possible. When you contribute a gift of life insurance to Long Beach Rescue Mission Foundation, the cash value of the existing policy results in an immediate charitable deduction for you. Continued gifts to Long Beach Rescue Mission Foundation for premiums are also deductible.

You can make an endowment gift with a new life insurance policy at a relatively small expense. A member of Long Beach Rescue Mission Foundation’s Ministry Support Office is available to assist you by working with your life insurance representative to establish a program to achieve your goals.

Charitable Remainder Unitrusts for Tax Savings and Flexibility

Charitable remainder unitrusts involve the irrevocable transfer of your property to a trust. In return, the trust pays an income (at least annually) for the life of one or two beneficiaries, or for a term of years.

The income you receive is based on a fixed percentage of the fair market value of the property held in trust, which is valued annually. The percentage, set by you, the donor, cannot be less than 5%.

Many tax benefits can be yours by establishing your charitable remainder unitrust. Appreciated property can be transferred to the trust with capital gains tax avoided when the property is sold by the trustee.

In addition to estate tax benefits, a unitrust established during your lifetime allows an immediate income tax charitable deduction based on the age of the beneficiary and the percentage of income.

The charitable income lead trust is especially attractive if you are receiving a significant annual income and would like to receive the maximum charitable tax deduction obtainable, but would prefer not to make an outright gift of income producing assets.

You may transfer assets to a charitable income lead trust specifying that the income be paid to a designated charity, such as Long Beach Rescue Mission Foundation, for a term of years.

Following that time, the remaining interest passes to an individual beneficiary, such as your child or grandchild. Your lead trust can be established during your life or through your will, and can be arranged so that estate and gift taxes are substantially reduced.

Life Estate Preserves Your Use of Donated Property

A life estate gift arrangement provides you the opportunity to transfer title of your home, farm or ranch to Long Beach Rescue Mission Foundation while reserving your right to live on the property while still receiving all its income.

At your death, your home, farm or ranch becomes the property of Long Beach Rescue Mission Foundation, avoiding the probate process. If the transfer is irrevocable, an income tax deduction is available to you in the year of the gift.

The calculation of your projected tax deduction, through the use of a life estate arrangement, is available by contacting the staff at the Ministry Support Office