OTHER PLANNED GIFTS

Fall aspens in Perazzo Meadows. Photo by Bill Stevenson.

 There are several ways to transfer cash or appreciated assets into a planned gift that supports you and the Truckee Donner Land Trust. Speak with your financial advisor to learn more about these vehicles for planned giving.

Retained Life Income Interest

Your gift of cash or appreciated assets can become a retained life income interest.

You can transfer cash or appreciated assets to fund a Charitable Remainder Trust (CRT) or other retained life income interest like a Charitable Gift Annuity (CGA) or Family Charitable Lead Trust.

Talk to your professional advisor about whether one of these gifts is right for you.

1.    Charitable Remainder Trust (CRT)

In the case of a Charitable Remainder Trust (CRT) funded with appreciated assets, you can avoid paying capital gains tax on the sale of your appreciated assets and receive an income tax deduction for the charitable remainder portion of your gift to the Truckee Donner Land Trust in the year you transfer assets to the trust.

The CRT is then invested to pay fixed or variable income to you or any other trust beneficiaries you select based on a life, lives or a term of up to 20 years. The Land Trust benefits from what remains in the CRT after all the trust payments have been made.

When you create a CRT during your lifetime, you will receive a charitable income tax deduction for the remainder portion of your gift to charity. If you establish a CRT as part of your estate plan, your estate may benefit from estate tax savings after you pass away.

Another option is for you to leave retirement assets to a CRT that pays income to a loved one after you are gone. You can designate a CRT as the beneficiary of your retirement assets, and the trust will provide for your loved ones.

There are two different types of Charitable Remainder Trusts (CRTs).

Both kinds of trusts require a minimum trust payout of 5%. The CRAT and the CRUT differ, however, as to the payout amount to the income beneficiaries.

  • (CRAT or annuity trust) pays a fixed amount each year based on the date the trust is funded.

  • (CRUT or unitrust) payout amount varies from year to year and is based on a fixed percentage of the trust assets each year. With the unitrust, if the trust grows in value over time, the amount of your payments will grow.

Teresa’s Story

Teresa has a second home in Truckee and is looking to sell it this year. She is nearing retirement and would like to draw an income for the remainder of her life. The Land Trust provided her with some planned giving ideas for her to discuss with an advisor. She is now working with her financial advisor to create a Charitable Remainder Unitrust (CRUT) from the sale of her second home. Teresa will make an incredible impact on conservation in the Sierra because she has included the Truckee Donner Land Trust as a remainder beneficiary of her CRUT when she passes.

2. Charitable Gift Annuity (CGA)

You can fund a charitable gift annuity (CGA) by making an irrevocable transfer of cash, publicly traded securities, or, less commonly, real estate to a qualified 501(c)(3) charity in exchange for a fixed, lifetime income stream.

Funding with appreciated securities can help minimize capital gains taxes, while individuals 70½ or older can make a one-time, tax-free transfer of up to $55,000 (as of 2024/2025) from an IRA, known as a Qualified Charitable Distribution (QCD).

With a charitable gift annuity (CGA) you, or you and a loved one, receive payments from the Truckee Donner Land Trust for life (with the help of a 3rd party partner). The rates are attractive and continue in fixed amounts as long as you live. You also receive income tax and possible capital gains benefits.

3. Create a Family Charitable Lead Trust

You can fund a Family Charitable Lead Trust (CLT) with cash, publicly traded securities or property and make payments to the Truckee Donner Land Trust for a specified period, then distribute the trust property to beneficiaries you select. A CLT can last for the lifetime of one or more beneficiaries or for a specific term of years.

A Family CLT receives property and distributes it to the non-charitable beneficiaries at the end of the term. A gift tax deduction is available to a donor who creates a Family CLT. The donor’s estate receives an estate tax charitable deduction if the CLT is established at the donor’s death.

There are two different types of Family Charitable Lead Trusts

  • (CLAT or annuity trust) provides a fixed, predictable annual payout to the Truckee Donner Land Trust, ideal for high-performing assets where excess growth transfers tax-free to heirs.

  • (CLUT or unitrust) pays a variable percentage of the annually revalued trust assets to the Truckee Donner Land Trust, offering flexibility but, generally, less potential for significant wealth transfer to heirs.

This information is educational in nature. It is not offering professional tax, legal, or accounting advice. Please seek the specific advice of your tax advisor, attorney, and/or financial planner to discuss your unique situation.