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

• Will or Living Trust
• Charitable Gift Annuity
• Charitable Remainder Trust
• Pooled Income Fund
• Life Insurance
• Home
• Retirement Plans

A Bequest by Will or Living Trust
A bequest is a frequently chosen type of gift, as the donor can retain full ownership and use of an asset for as long as he or she lives. A bequest can appear in the original will or in a codicil. Also, a distribution from a qualified retirement plan at the end of your life means you need not give up a source of income prematurely. Click here for sample bequest language.

Charitable Gift Annuity
Charitable gift annuities are the oldest, simplest and most popular life-payment gifts. In exchange for a contribution of cash, marketable securities or (in some cases) real estate, Alabama Public Television contractually agrees to pay a specified life annuity to you and/or another beneficiary. Rates depend on the ages of beneficiaries, but frequently provide greater cash flow than fixed-payment investments.

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 the donor 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 of funding.

Pooled Income Fund
A pooled income fund contribution has some of the same features as a mutual fund investment. Each donor's irrevocable gift of cash or certain marketable securities is combined with similar gifts in a single fund. The fund's income for the year is then distributed in proportion to the interests of all of the fund's donors.

Life Insurance
A gift of life insurance may be made either by designating Alabama Public Television 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 in which you Retain Lifetime Occupancy
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 Alabama Public Television, but cannot afford to give up the property during your lifetime.

Benefiting Charity Using Retirement Plans
Wisdom has told us over the years to accumulate assets via retirement plans. In fact, most working Americans save a substantial portion of the retirement assets in these qualified plans. You have gained by having the taxes deferred on the earnings of these assets.

However, for estate tax purposes, qualified retirement plans (IRA's, 401(k)'s, etc.) will actually leave very little for your heirs through your estate. Why? The value of your retirement assets is taxable in your estate at death, with taxes ranging from 37 to 55 percent. In addition, since this is a qualified retirement plan, it does not receive a step up in value at your death. Any withdrawals or distributions made to your heirs are also taxable to them for income tax purposes, with taxes ranging from 15 to 40 percent. For an individual in the maximum tax brackets, what gets left for your heirs is approximately 27 cents for every dollar in a retirement plan.

If you were considering benefiting a charity in your will, consider using your retirement assets as the vehicle. Since the charity is a tax-exempt entity, they 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:
Separate the portion of your retirement assets that you want to benefit charity into a separate account and name the charity as the beneficiary. It is as easy as that. In the long run, this very simple change could preserve more family wealth for your loved ones and the charitable organizations of your choice.

For more information, contact us, we will be happy to answer any questions you may have about planned giving.