Leave a Legacy of Land Preservation
Although often overlooked, a giving option that you may want to consider is a planned gift. Most planned gifts offer tax benefits, have little or no current financial impact on you, and may result in the largest and most lasting one-time gift you ever make to the Land Trust. You can create a legacy of Land Preservation through a bequest or will, a life income gift (such as a charitable gift annuity, or a charitable remainder trust), or a gift of special assets (such as real estate, stock, life insurance, retirement accounts).
Here are some options to consider…
- Transfer your mandatory IRA Distribution directly to the Land Trust of North Alabama. Are you 72 years or older? If so, you may be facing a mandatory minimum IRA distribution that could count toward your taxable gross income. If you transfer your distribution directly to the Land Trust as a donation, you will avoid having those funds included in your taxable income. It is a simple way for you to satisfy the requirements of your mandatory IRA distribution, while at the same time making a significant impact on land preservation.
***Changes for Charitable Distributions in 2020***
At the end of December 2019, the SECURE Act was signed into law. Among other things, this law pushes back the age of Required Minimum Distributions (RMD) from 70.5 to 72. How could this impact you? If you turn 70.5 after Jan 1, 2020, you won’t be subject to Required Minimum Distributions until you turn 72. Retirees will have an additional year and a half to contribute to an IRA. IRA balances will have the opportunity to collect compound interest for another year and a half. This means IRA balances could increase. A higher balance means that the Required Minimum Distribution may also be greater – a blessing and a curse – higher RMD’s means more money for the retiree however, it also may mean more taxes. In addition, IRA inheritors may be required to take full distribution within 10 years, which could expose them to a much higher tax bill. Making a Qualified Charitable donation through your IRA could help reduce your (or your family’s) tax exposure. Here’s how:
– If you are 70.5 year old, you are still Qualified Charitable Distribution (QCD) eligible, and it still may be beneficial to give. While the SECURE Act changed the minimum age for RMDs, it did not change the minimum age for QCDs. Giving a QCD before turning 72 may help you lower your eventual Required Minimum Distributions, so it may still be beneficial to withdraw.
– If you are turning 72, and are now required to withdraw a distribution you may want to consider a Qualified Charitable Distribution.
– If you are concerned about the tax implications for your heirs, you may want to consider designating your favorite charities as beneficiaries or partial beneficiares of your IRA
- Identify the Land Trust as a beneficiary in your will. You can name the Land Trust as a beneficiary in your will to receive a portion of your assets upon your death.
- Add the Land Trust as a primary or contingent beneficiary to your life insurance policy. Do you have a life insurance policy that was purchased for a need that no longer exists? If you name the Land Trust of North Alabma as a beneficiary, we would be the recipient of death benefit proceeds from your policy. You can make a sizeable gift to the Land Trust while at the same time reducing the size of the taxable estate for your heirs.
- Name the Land Trust of North Alabama as a primary or contingent beneficiary of your trust. If you have a trust, you can name the Land Trust as a beneficiary. This allows you to dictate the terms of charitable disbursements after your death and will help your heirs avoid the probate process.
If you are interested in learning more, please contact Hallie Porter at 256-534-5263 or email@example.com. If you have already named the Land Trust of North Alabama as a beneficiary in your estate planning, please let us know. We would like to thank you now!
*As with all financial decisions including charitable donations please talk to your attorney or financial advisor for the most accurate and up to date information.