Although she has been retired for many years, she carries a business card reading “Helping People is My Goal!” Peggy is a sparkplug in her community of Port Ludlow, WA. She is one of five people awarded the Jefferson County Heart of Service award in 2006. She supports Make-A-Wish Alaska and Washington among many other charities, and has established a charitable remainder trust to benefit the organizations she cares about after she is gone.
A charitable remainder trust can be established by placing assets in trust, which then generate lifetime income for you and/or another beneficiary. Then, at death, your designated charities receive whatever remains.
Such trusts can eliminate up-front capital gains tax if you donate long-term appreciated securities and provide a sizeable income tax charitable deduction. They can also give you fixed or variable income for life that can often exceed the current yield on your contribution, while also allowing you to make a significant gift to one or more charitable organizations.
“It changed my life,” said Peggy about her charitable remainder trust. “It practically doubled my annual income and provided significant annual income tax deductions, too!”
A charitable remainder trust is just one of Peggy’s planned gifts. She has a will and a charitable gift annuity as well. Why has she made these arrangements? “You know, I don’t have any kids and I can’t think of a better thing to do with what assets that may remain after I’m gone than to leave them to charities that benefit children,” she said. “I want to use my money wisely, too. I worked very hard to earn what I have. With the trust, I can help more people now and in the future. And, it relieves my cousin, who is my executor, too. She will know exactly what I want to go where and won’t have the burden of making those decisions.”
Peggy worked with her certified financial planner, Tom Deichert of Wealth Solutions of Poulsbo, WA, to establish the trust. “Many people are pleasantly surprised by the positive impact of properly structured trusts, said Tom. “A diamond-in-the-rough is the charitable remainder trust with its trio of formidable benefits. In most cases, families are able to accomplish a variety of unique financial, charitable and estate planning goals with this single tool. Peggy's favorable outcome is not uncommon, and it allowed her to express her giving-heart while realizing lifetime benefits today! Amazing to be sure!"
For more information about how a planned gift could change your life and support the life-changing work of Make-A-Wish, please contact Asa Tate, Director of Philanthropy & Mission Advancement at 206.588.8960 or firstname.lastname@example.org.