“Give it Twice” to support charity
Are you looking for a way to help secure your family's future while making a gift to charity? It's possible to achieve these goals and enjoy valuable income and estate tax savings with a “give it twice” trust. A “give it twice” trust allows you to transfer your IRA at death to a term of years unitrust. The unitrust will pay income to your family for up to 20 years before the balance is distributed to a charitable cause you care about.
Here is how it works:
Step 1: Work with your attorney/financial planner to create a charitable remainder unitrust. This is where the South Dakota Community Foundation would be included if you intend to support a nonprofit through an endowment fund.
Step 2: Work with your IRA administrator to complete a beneficiary designation form, naming the charitable trust as the beneficiary.
Step 3: Your assets will be transferred to the trust after you pass away
Step 4: The trust will pay income annually to your spouse, children, or other individual beneficiaries for the term of years specified.
Step 5: At the conclusion of the payment schedule, your funds will go to support the designated charity.
Benefits to you:
- You realizes the full value of your unused retirement account to provide income to your surviving spouse, children or other loved ones for a specified period of time
- Create an estate tax deduction and saving on income taxes.
- Treat your children equally, and give your children a chance to learn how to manage finances
- Provide direct support to your family while also supporting a cause you care about. Support the charity directly, or partner with the South Dakota Community Foundation to support a charitable purpose forever through a designated endowment fund.
Our professional staff is ready to help you meet your charitable goals. Please contact us with any questions.