Leaving a Legacy
Making a planned gift to Special K Ranch can provide significant tax benefits and assist with estate planning. While this type of giving may seem complicated we are here to help. Please contact the development office for further assistance. Some examples of planned gifts are described below.
Montana Income Tax Credit for Endowed Philanthropy
Montana taxpayers are eligible for a tax credit of up to $10,000 ($20,000 per couple). Planned gifts, such as charitable gift annuities, qualify for this credit, which is worth 40% of the charitable gift amount. In many cases, a $10,000 charitable gift annuity can be created for about $3,500 out-of-pocket, after tax savings.
Bequest is a gift made by naming Special K Ranch as a beneficiary in your will. It is a simple and popular way to support the ranch. Bequests of all sizes are appreciated and encouraged. Another option is to assign a particular asset or percentage (%) of your estate rather than a dollar ($) amount. If you already have a will your attorney can add Special K Ranch with a simple amendment.
Including the ranch in a revocable living trust or similar vehicle works in much the same manner as a bequest and this information applies to both types of planned gifts. Your attorney can assist you in establishing or updating your living trust.
Whole life, universal, and other forms of permanent life insurance policies can provide an important planned gift for the ranch's future. You can contribute all or part of an insurance policy that you own but no longer need. When Special K Ranch is named as the owner and beneficiary of an existing policy, your annual premium payments become tax-deductible. In addition, you are generally able to deduct an amount approximately equal to the current cash value of the policy for income tax purposes. Another option is to purchase and name the ranch as owner/beneficiary of a new life insurance policy.
Charitable Remainder Trust
The income and estate tax advantages of a charitable remainder trust can be significant. You and your attorney can create an irrevocable unitrust or annuity trust agreement naming yourself, a bank, or Special K Ranch to serve as trustee. You may transfer cash, securities, or other property to the trust. The trust then pays income to you and/or other beneficiaries for life or a term of years (not to exceed 20) at a certain percentage or dollar amount as determined when the trust is established. When the trust’s term is concluded, the remainder is distributed to Special K Ranch. A trust can be an attractive method of giving for those who own stock with a low-cost basis.
Individuals 70 1/2 and older can transfer up to $100,000 from an IRA directly to Special K Ranch without recognizing the assets transferred as income. This tax-wise way of giving counts toward meeting the required minimum distribution (RMD) from IRAs. Distributions must be made from the IRA custodian directly to the ranch.