After you’ve taken care of your loved ones, consider including Eagle’s Nest in your estate plans.
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Eagle’s Nest Foundation
43 Hart Road
Pisgah Forest, NC 28768
A gift annuity is a simple contract under which the donor transfers assets to the Foundation, which in return provides life income to the donor and up to one other family member or loved one. There are two types of gift annuities: charitable gift annuities and deferred gift annuities.
A Charitable Gift Annuity
A charitable gift annuity may be established with a small investment ($5,000 minimum). It can be funded with either appreciated securities or cash. The donor receives an immediate income tax deduction and may also bypass or defer capital gains tax. In addition, a portion of the income paid out of the annuity may be tax-free.
A Deferred Gift Annuity
A deferred gift annuity has the same benefits and requirements as a charitable gift annuity. The only difference is that a donor selects a future date (one year or more) to begin income payments. In addition to an immediate tax deduction, benefits include increased income and a tax deduction due to deferral of income.
Due to varying restrictions, Eagle’s Nest is not able to offer gift annuities in all states. Please contact Eagle’s Nest or your financial advisor for information specific to your situation.
Charitable Remainder Trust
A charitable remainder trust (CRT) is a vehicle that allows you to transfer assets to a trust, receive income from that trust until a specified time, at which point the “remainder” (what’s left over) goes to Eagle’s Nest Foundation. CRTs can be created while you are alive or through your will.
What are the benefits of a CRT?
- It removes the assets from your estate, reducing or eliminating your estate taxes.
- Because CRTs are irrevocable, you receive an income tax deduction for the “remainder” value of the trust as calculated by an IRS formula.
- You receive income during your lifetime. Or, with a testamentary trust (created upon your death) you can retain control of your assets until your death when your beneficiaries will receive income for a set period of time.
- You avoid capital gains taxes. Because you are giving to a charity, you will not pay capital gains on the sale of your appreciated asset(s), no matter how low your cost basis.
- You are providing a gift to the Foundation that you may not be able to provide through other means.
Unitrusts vs Annuity Trusts
A charitable remainder unitrust (CRUTs) offers beneficiary payments based on a percentage that changes annually with the value of the trust; payments from annuity trusts (CRATs) are fixed at the time the trust is created and cannot change. Another significant difference is the acceptance of annual contributions: unitrusts allow them; annuity trusts do not.
Charitable Lead Trust
In a charitable lead trust, Eagle’s Nest “leads” by receiving payments first with the remainder passing to your named beneficiaries after a set period of time. Many donors like this arrangement, as it keeps assets in the family and gives immediate help for Eagle’s Nest’s funding needs. Like any other trust, a charitable lead trust can be created while you’re alive or through your will.
A new or existing life insurance policy is a low-cost way to make a significant gift to the Foundation. You may also receive a tax deduction for your premium payments. Please note that Eagle’s Nest must be owner and beneficiary of the policy for a gift to be eligible for tax benefits. Often individuals cannot give large sums of money, but this is something anyone can do for the Foundation — designate Eagle’s Nest as the beneficiary of their life insurance policy.
A personal residence, a farm or commercial property that is debt free can help further the work of Eagle’s Nest. In most cases the property would be sold at fair market value however, the property may be retained as an investment. For example, land owned in a remote location may be held and used for Eagle’s Nest Programs and sold later.