Connecting to the Community
Making a lifelong dream come true.

Mark and Susan Smith are enjoying their retirement. They have been astute investors throughout their lives, and want to plan their estate wisely. Giving a gift back to the community where they raised their family is a lifelong dream. In addition, the Smiths want to preserve a substantial portion of their estate for their three children by limiting gift and estate taxes.

Their estate advisor suggested establishing a Charitable Lead Trust, and designating their community foundation as the vehicle for all of the Smiths' charitable giving.

During their lifetime, the trust will pay an annual fixed annuity to their community foundation. If they establish a Donor Advised Fund, the Smiths can be actively involved in the use of their gift during their lifetimes.

After the Smiths die, the trust terminates and transfers its assets to the Smiths' children, tax free. Since the transfer of assets is complete when the trust is created, no portion of the trust is included in either of the Smith's estates.

Increasing income for life and leaving a gift to the community
Preserving a charitable intent, forever.

Margaret Klein is a widow with no living children. She is a caring person who enjoys volunteering and giving to worthy charities. Her lifestyle is modest - supported by social security benefits and interest and dividend income. She has a savings account set aside for emergencies. Margaret's investment portfolio is made up of blue-chip stocks that have appreciated significantly.

She would like to increase her spendable income but is worried about "dipping" into the principal of her portfolio. She is also concerned about capital gains tax if she sells her appreciated assets. Her friend, a retired CPA, suggested she meet with her community foundation to discuss a Gift Annuity.

An annuity contract guarantees her a fixed income for the rest of her life, which is a substantial increase over the dividend income she currently receives. Upon Margaret's death, the community foundation will begin to distribute income from her endowment gift. Each grant will be awarded using her name.

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Giving Back and Staying Involved
Meeting a variety of charitable interests.

John Green, age 55, is a successful businessman. For John and his wife, Evelyn, finding ways to help others in their community has always been a way of life.

During the past year, John's company enjoyed record success, and he expects to receive a significant bonus in late December. As John and Evelyn began their year-end tax planning discussions, their accountant suggested that the Greens consider increasing their charitable contributions this year. They agreed but expressed concern about not having much time to consider which organizations in the community would benefit most from their gift.

The Greens elected to establish a Donor Advised Fund at their community foundation. This will allow them to stay actively involved in suggesting uses for the gift for years to come, while gaining an immediate tax deduction in the year their gift is made.

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