Types of Gifts

Search

Home › Content › Types of Gifts

Types of Gifts

A planned gift may enable you to make a larger contribution than you ever thought possible. You may designate KCTS Television as a beneficiary of your estate by making a Legacy Gift through:

A Bequest by Will or Living Trust

A bequest is a popular type of gift, as you can retain full ownership and use of an asset for as long as you live. A bequest can appear in the original will or in a codicil. It can also offer estate tax advantages. Even if you already have a will or a living trust, you can still add a bequest to KCTS 9: just ask your lawyer about doing a codicil to your will or an amendment to your living trust agreement. Click here for sample bequest language (here if you live in Canada).

Charitable Gift Annuity

Charitable gift annuities are the oldest, simplest and most frequently established life-payment gifts. In exchange for a contribution of cash, marketable securities or (in some cases) real estate, KCTS Television contractually agrees to pay a specified life annuity to you and/or another beneficiary. Rates depend on the ages of beneficiaries, but often provide greater cash flow than fixed-payment investments. You also receive an income tax deduction for a portion of the value of your contribution.

Charitable Remainder Trust

A charitable remainder trust is a planned giving arrangement in which property is irrevocably transferred under a trust agreement. The trust pays income to you and/or other beneficiaries either for the life of the beneficiaries or for a term of years. The amount of income can be fixed or variable, depending on the type of trust. (It is common for such trusts to be funded with property that has increased in value, due to the fact that neither the donor nor the trust pays any capital gains tax at the time property is transferred to the trust or sold by it.) Upon termination of the trust, assets are distributed to KCTS 9. Because of this charitable aspect, you receive an income tax deduction for part of the value of what you transferred to the trust.

Life Insurance

A gift of life insurance may be made either by designating KCTS 9 as a beneficiary of the policy or by arranging for us to become the owner of the policy. The former entails many of the same advantages as a bequest, whereas the latter can result in current income tax savings.

A Home or Farm in which you Retain Lifetime Rights

A gift of a home or a farm in which you retain a "life estate" is another option if you desire current tax savings and want ultimately to leave the property to KCTS 9, but cannot afford to give up the ability to use it during your lifetime.

Benefiting KCTS Using Retirement Plan Asset

Wisdom has told us over the years to accumulate assets via IRA's and qualified retirement plans. Indeed, many working Americans save a substantial portion of their retirement assets in such qualified plans.

In some cases, however, people who take full advantage of these tax-favored arrangements actually build more wealth than they need to retire comfortably. Furthermore, once funds are withdrawn from IRA's and such qualified plans, they are usually fully taxable. In addition, if surplus amounts are left to heirs, estate tax may also need to be paid, thereby reducing by as much 70% the amount received by family members.

Therefore, if you are thinking of benefiting KCTS 9 upon your death, consider designating us as the beneficiary of some or all of the assets that may remain in a particular IRA or qualified plan at the end of your life. Since KCTS 9 is a tax-exempt entity, we do not pay income taxes and your estate will get a deduction for the amount left to the charity so no estate taxes will be paid on the amount either. This is truly a win-win situation.

The strategy is easy: For more information, contact KCTS 9. We, in turn, will work with you and your advisors on an appropriate designation.

Sara Elward
Phone: 206.443.6730
E-mail: selward@kcts9.org

Many thanks for your interest in supporting the work of KCTS 9.