Planned Giving and Bequests | New York Community Trust
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At The Trust, we offer your clients several planned giving options that may be ideal for their timeline, beneficiaries, assets and charitable goals.

A Charitable Legacy
Bequest By Will
Bequest By Will

An outright bequest — whether by will or revocable trust — to The New York Community Trust is the simplest and most direct way for your client to establish a fund.

If the fund will be restricted in purpose, please review the final language with us to ensure we can carry out your client’s wishes.

We are happy to provide sample language that can be included in a will.

IRA or Retirement Assets
IRA or Retirement Assets

IRAs and similar pension assets, such as 401(k)s, 403(b)s, and defined contribution plans are the most highly taxed assets at death; because they are “income in respect of a decedent” (IRD) they are included in both the decedent’s taxable estate and are subject to income tax. Individuals who designate a charitable recipient as beneficiary of IRD property avoid the income tax that would otherwise be due and the charitable bequest reduces their taxable estate. In short, use of IRD for charitable gifts instead of other assets will further clients’ philanthropic interests while leaving more to heirs.

Your client may also wish to use IRA assets for a charitable gift during his or her life. Under current law, individuals who are 70 ½ or older may take up to $100,000 in tax-free distributions by having them distributed directly to qualified charities, while counting toward the minimum distribution requirements. A contribution to a donor-advised fund is not deemed a qualified charitable distribution for this purpose, but contributions to a designated, field-of-interest or unrestricted fund do qualify. Your clients can see their charitable gifts put to work while reducing their current income tax and the value of their taxable estates.

Charitable Remainder Trust
Charitable Remainder Trust

A charitable remainder trust (CRT), whether set up as an annuity trust or a unitrust, is an extremely useful estate and financial planning tool. Typically, CRTs offer three important tax benefits:

  • A current income or estate tax deduction for the present value of the remainder committed to charity;
  • The avoidance of capital gains tax when the appreciated assets are sold;
  • Exemption from tax on earnings of the trust until they are distributed to the income beneficiary.

Because the assets of a CRT are exempt from tax on the income earned by the trust, the proceeds are reinvested by the trustee and grow on a tax-free or tax-deferred basis.

The New York Community Trust is an ideal remainderman of a CRT. Donors can rely on our expertise in philanthropic administration and grantmaking as well as investment management.  For more information, read our Professional Notes about CRTs.

Charitable Lead Trust
Charitable Lead Trust

A charitable lead trust  (CLT) generally is used to transfer assets to the next generation with reduced or possibly no tax, while also providing for charity. The CLT pays annual distributions to charity, either as an annuity or unitrust payment, for a period of time, then distributes the remainder to non-charitable beneficiaries selected by the donor (typically, your client’s children).

The New York Community Trust is an ideal charitable beneficiary of the annual distribution from the CLT. It offers several fund types, and the ability to be involved in the grantmaking — if your client desires.

Life Insurance Policy
Life Insurance Policy

Life insurance makes it possible for almost everyone to make a meaningful gift. Policies that are no longer needed can make excellent gifts when given to The New York Community Trust. Your client can transfer ownership of the policy and deduct the fair market value.

If the policy is not fully paid up, your client will need to make additional contributions to enable charity to pay the premiums.

Bequest By Will
Bequest By Will

An outright bequest — whether by will or revocable trust — to The New York Community Trust is the simplest and most direct way for your client to establish a fund.

If the fund will be restricted in purpose, please review the final language with us to ensure we can carry out your client’s wishes.

We are happy to provide sample language that can be included in a will.

IRA or Retirement Assets
IRA or Retirement Assets

IRAs and similar pension assets, such as 401(k)s, 403(b)s, and defined contribution plans are the most highly taxed assets at death; because they are “income in respect of a decedent” (IRD) they are included in both the decedent’s taxable estate and are subject to income tax. Individuals who designate a charitable recipient as beneficiary of IRD property avoid the income tax that would otherwise be due and the charitable bequest reduces their taxable estate. In short, use of IRD for charitable gifts instead of other assets will further clients’ philanthropic interests while leaving more to heirs.

Your client may also wish to use IRA assets for a charitable gift during his or her life. Under current law, individuals who are 70 ½ or older may take up to $100,000 in tax-free distributions by having them distributed directly to qualified charities, while counting toward the minimum distribution requirements. A contribution to a donor-advised fund is not deemed a qualified charitable distribution for this purpose, but contributions to a designated, field-of-interest or unrestricted fund do qualify. Your clients can see their charitable gifts put to work while reducing their current income tax and the value of their taxable estates.

Charitable Remainder Trust
Charitable Remainder Trust

A charitable remainder trust (CRT), whether set up as an annuity trust or a unitrust, is an extremely useful estate and financial planning tool. Typically, CRTs offer three important tax benefits:

  • A current income or estate tax deduction for the present value of the remainder committed to charity;
  • The avoidance of capital gains tax when the appreciated assets are sold;
  • Exemption from tax on earnings of the trust until they are distributed to the income beneficiary.

Because the assets of a CRT are exempt from tax on the income earned by the trust, the proceeds are reinvested by the trustee and grow on a tax-free or tax-deferred basis.

The New York Community Trust is an ideal remainderman of a CRT. Donors can rely on our expertise in philanthropic administration and grantmaking as well as investment management.  For more information, read our Professional Notes about CRTs.

Charitable Lead Trust
Charitable Lead Trust

A charitable lead trust  (CLT) generally is used to transfer assets to the next generation with reduced or possibly no tax, while also providing for charity. The CLT pays annual distributions to charity, either as an annuity or unitrust payment, for a period of time, then distributes the remainder to non-charitable beneficiaries selected by the donor (typically, your client’s children).

The New York Community Trust is an ideal charitable beneficiary of the annual distribution from the CLT. It offers several fund types, and the ability to be involved in the grantmaking — if your client desires.

Life Insurance Policy
Life Insurance Policy

Life insurance makes it possible for almost everyone to make a meaningful gift. Policies that are no longer needed can make excellent gifts when given to The New York Community Trust. Your client can transfer ownership of the policy and deduct the fair market value.

If the policy is not fully paid up, your client will need to make additional contributions to enable charity to pay the premiums.