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Gifts that Benefit Your Heirs

Many Kare Youth League donors want to do more to help Kare Youth League, but also want to make sure their loved ones, especially children and grandchildren are taken care of.

Here are some of the most common ways:

Gifts that Benefit Your Heirs

SEVERAL LEGACY GIFTS SUPPORT KARE YOUTH LEAGUE, AND, AT THE SAME TIME, BENEFIT YOUR HEIRS.

A Charitable Lead Trust

A charitable lead trust is a way of making a gift to Kare Youth League that enables you to reduce gift and estate taxes while controlling the timing of passing assets to your children and grandchildren.

You contribute securities or other appreciating assets to a charitable lead trust. The trust makes annual payments to Kare Youth League for a period of time. When the trust terminates, the remaining principal is paid to your heirs.

Benefits to You

  • The present value of the income payments to Kare Youth League reduces your gift/estate tax.
  • All appreciation that takes place in the trust goes tax-free to your heirs.
  • The amount and term of the payments to Kare Youth League can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
  • You have the satisfaction of making a significant gift to Kare Youth League now that reduces the taxes due on transfers to your heirs later.

A Gift Annuity with Two Beneficiaries

Charitable gift annuities are a popular way of providing financial security to a loved one. You make an irrevocable donation of at least $25,000 to Kare Youth League to create a gift annuity with two beneficiaries, for example, a spouse or adult child. You receive fixed annual payments – for as long as either beneficiary lives – at an attractive payment rate and a charitable deduction, too. Plus, you enjoy the satisfaction of making a gift that benefits you now and, in the future, helps fund our program for children.

John, age 79, wants to be sure that if something happens to him, his wife Beatrice, age 77, will be financially secure. He and Beatrice also want to help Kare Youth League, so they donate $100,000 to create a gift annuity. The payment rate for two beneficiaries, age 79 and 77, is 5.4%, which results in an annual payment of $5,400. If either of them passes away, the surviving spouse will continue to receive the full $5,400 annuity payment each year for life.

A Charitable Remainder Trust

A charitable remainder unitrust with Kare Youth League can provide you and/or other beneficiaries with income for life or for a fixed number of years. For your donation, which can be appreciated securities or real estate, you receive an immediate income tax deduction for a portion of your contribution to the unitrust and savings on capital gains taxes, too. You will also have the satisfaction of making a significant gift that benefits you now and Kare Youth League later.

With this type of gift you can:

  • Avoid paying capital gains on sales of appreciate stock and real estate.
  • Convert the full value of your asset into a lifetime income stream.
  • Receive a significant charitable income tax deduction.
  • Remove assets from your taxable estate.

Ruth and David, both age 70, have a vacation home that has become a burden to manage and maintain. Giving the property to one of their children is not an option. The property is worth $350,000, but they paid only $20,000 and are concerned about capital gains taxes.

Donating the property to Kare Youth League would provide them with income, reduce their capital gains tax and enable them to reduce the estate tax bill their children will inherit.

Gifts of Retirement Plan Assets

Because retirement plans are taxed differently than most assets, they may actually become a tax liability. Naming Kare Youth League a beneficiary of your retirement account can be an attractive option for leaving a legacy and reducing income and possibly estate taxes for your loved ones.

Making Kare Youth League a beneficiary of a retirement account is easy. Simply ask your plan administrator for a beneficiary designation form and include Kare Youth League as beneficiary of a specific percentage of the account value or as a contingent beneficiary.

Retirement Plan Assets Chart

*Tax rates shown here reflect 2018 tax law changes. Estate tax is not shown because it applies infrequently.

We’re Here to Help

Dan Kirby

Dan Kirby

Director
Kare Youth League Planned Giving
(626) 201-0063
Email: plannedgiving@kyl.org

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Kare Youth League • PO Box 662080, Arcadia, CA 91066-2080
Kare Youth League is a 501(c)(3) tax-exempt organization (EIN: 95-1869644), and your donation is tax-deductible within the guidelines of U.S. law.