Life Income Plans
Types of Planned Gifts made available to the church, institution or individual:
There are six basic instruments that TPF offers individuals in their planned giving. In all cases, the Foundation will offer these services to Presbyterians or non-Presbyterians. However, in order to maintain our posture as a part of the Presbyterian Church, Presbyterian related entities must be the beneficiary or beneficiaries of at least 50% of any contract entered into with TPF. The Foundation administers life income plans on behalf of the local church and the institutions of the church. With some minor exceptions, the expense of doing this administration is recouped from the overall investment management services of the Foundation.
Charitable Gift Annuities:
Gift Annuity: With a charitable gift annuity, an individual makes
a gift to TPF in return for a contract guaranteeing the donor (and perhaps
another beneficiary) a fixed income for life, with the balance ultimately
distributed to the donor's designated charities or ministries. Especially
appropriate for those who place high value on income security, gift annuities
offer many tax advantages and high payout rates, particularly for donors at
older ages. The minimum amount for this instrument at TPF is $2000.
(Download
a Color Brochure) To create a calculation that shows how this instrument
would apply to you, click
here...
Deferred Payment Gift Annuity: This instrument is designed often
for a younger donor who wants a charitable deduction now, but who can choose
to receive a considerably higher payout rate by deferring the income for several
years, perhaps until retirement. The minimum amount for this instrument at
TPF is $2000. Please contact the office to have a calculation done for you
at no cost and with no obligation (800-955-3155).
Charitable Remainder Trusts:
Charitable Remainder Unitrust: A charitable remainder Unitrust is
established by a written trust document prepared by the donor's lawyer. The
donor's gift to the trust can be cash, securities or other property. TPF invests
and administers the trust assets, distributing income to the donor and/or
other specified beneficiaries, either for their lifetimes, or for a fixed
period of years, at a rate determined by the donors, with a minimum of 5%
of the value of the trust calculated at the beginning of each year. The income
payment is a fixed percentage but the payment amount fluctuates from year
to year with the changes in the market value of the trust's investments. At
the termination of the trust, the remaining assets are distributed to Presbyterian
and other ministries as determined by the donor at the outset of the trust.
Because a portion of the trust ultimately passes to charity, the government
allows a generous income tax charitable deduction at the time the trust is
established. The minimum amount of this gift plan at TPF is $50,000. To create
a calculation that shows how this instrument would apply to you, click
here...
Charitable Remainder Annuity Trust: This instrument is similar to
the Unitrust except the payment to the donor and other non-charitable beneficiaries
is fixed when the trust is established, and does not fluctuate with the changing
market value of the trust. The minimum amount of an annuity trust at TPF is
$25,000. To create a calculation that shows how this instrument would apply
to you, click
here...
Other Trusts:
Charitable Lead Trust: A Charitable Lead Trust is the opposite of
a Remainder Trust. In this case, the income payments are distributed to one
or more designated charities for a period of years, after which time the assets
are transferred to the trust's beneficiaries, typically the grantor or the
grantor's children or grandchildren. The minimum amount for this type of trust
is $100,000. To create a calculation that shows how this instrument would
apply to you, click
here...
Revocable Trust: This instrument does not involve a charitable deduction at its inception, but is rather a means whereby TPF can assist in the management of a person's assets for income purposes during their lifetime while the principal remains accessible for their use. Upon the death of the donor (or other lifetime beneficiary) it then does become an irrevocable charitable instrument that has estate tax benefits as well as accomplishing the charitable intent of the donor.
To serve the church and its members most fully, the above-named services may involve the receipt, continued management and sale of securities and/or other properties such as real estate, mineral rights and business interests. The Foundation carries out these transactions with the understanding that costs related to the administration, management and disposition of such assets are either covered by the donor or deducted from the principal of the gift, or shared between both.
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