Planned Giving involves providing for a charity, like Friends of Pathways, in your estate plans. It is a great way to ensure that Jackson Hole’s pathways and trails will be maintained for future generations to enjoy. We strongly suggest that you discuss your estate planning with your attorney or tax advisor to ensure that your plans allow for you to achieve your charitable intentions while providing for you and your loved ones in the best way possible.
Bequests
The simplest way to include Friends of Pathways in your estate planning is to name the organization as a beneficiary in your will. Gifts of cash are most common, yet it is possible to give securities, art, jewelry and other appreciated assets. The following sample language may help you get started.
For an unrestricted gift, a gift that can be used where need is greatest:
I give, devise and bequeath to Friends of Pathways, a Wyoming nonprofit corporation located in Jackson, WY, the sum of $_____ (or other assets described) for its general purposes.
For a gift to be used for a specific purpose:
I give, devise and bequeath to Friends of Pathways, a Wyoming nonprofit corporation located in Jackson, WY, the sum of $_____ (or other assets described to be used for [state specific purpose, program or activity].
There are also a variety of charitable giving tools to use in your estate planning. Please contact your tax or estate attorney to discuss if the following options are appropriate in developing your estate plans to include Friends of Pathways.
Life Income Plans
- Charitable Remainder Unitrust: To establish a unitrust, a donor transfers cash, securities or other appreciated property into a trust. The trust then pays a percentage of the market value of the assets re-valued annually to you or to beneficiaries you name. You receive an immediate income tax deduction for a portion of your contribution to the trust and pay no capital gains tax on appreciated assets you donate. The unitrust allows the donor to benefit from the growth of the trust assets over time. When the trust term expires, the principal passes to Friends of Pathways.
- Charitable Gift Annuity: To start a gift annuity, a donor transfers cash or securities to Friends of Pathways. Friends of Pathways then makes fixed payments to you for life. The principal passes to FoP when the contract ends. You can have the satisfaction of making a significant gift that benefits you now and Friends of Pathways later while receiving an immediate income tax deduction for a portion of your gift. Your annuity payments are guaranteed for life, backed by the assets of Friends of Pathways.
- Charitable Lead Trust: To establish a Lead Trust, a donor contributes cash, securities or other property to a trust. The trust then makes annual payments to Friends of Pathways specified term of years. When the trust ends, the remaining principal goes to your heirs. A Lead Trust is beneficial to an individual who can use a significant tax deduction because it reduces the taxes due on transfers to your heirs later. All appreciation that takes place in the trust goes tax-free to your heirs and annuity payments and the term of the trust can be specified in such a way so as to reduce or even eliminate the transfer taxes due when the principal reverts to your heirs
- Charitable Remainder Annuity Trust: Similar to the Charitable Remainder Unitrust, a Remainder Annuity Trust starts with a transfer of cash, securities or other appreciated property into a trust. The trust makes fixed annual payments to you or to anyone you name, providing you or your designated income beneficiaries with stable, predictable payments for life or a term of years. When the trust ends, the principal passes to Friends of Pathways. You receive an immediate income tax deduction for a portion of your contribution to the trust and pay no immediate capital gains tax on any appreciated assets you donate as long as you are one of the beneficiaries. The charitable income tax deduction for an annuity trust is usually higher than that for a unitrust, because the unitrust is likely to pay out more income to the beneficiaries over time. The charitable remainder unitrust pays out a fixed percentage of the trust’s assets, as revalued each year.
- Gifts of Life Insurance: You can name Friends of Pathways as a beneficiary of a life insurance policy. The gift of a life insurance policy results in an immediate tax deduction for the premiums paid on the policy as well as its cash value at the time of the gift.
