Providing philanthropic advice to both foundations and donors, Apex helps structure gifts that both maximize donations and protect intergenerational wealth from gift and estate taxes.
There are several types of charitable gifting strategies that can help to benefit your foundation with both steady income and lump sum donations. The benefits for the donors are two-fold in that the donor is able to witness the good work of your foundation during his/her lifetime and estate tax liability is reduced or eliminated as assets are eventually transferred to heirs.
Annual Exclusion and Lifetime Exclusion – Working with-in the limits of annual tax deductions, we help foundations maximize donations while minimizing tax consequences for donors.
A Charitable Lead Annuity Trust (CLAT) helps a foundation benefit from a stream of reliable, steady gifts made by the donor to the trust. This trust enables your donor to give a fixed amount to the foundation for a term of years or for the life of one or more individuals. At the conclusion of the trust’s term, remaining assets are distributed to remainder beneficiaries. Estate and gift taxes are greatly reduced or eliminated on the assets placed in the trust.
Structured similarly to a CLAT, a Charitable Lead Unitrust (CLUT) will provide a variable annual amount to the foundation. At the conclusion of the trust’s term, remaining assets are distributed to remainder beneficiaries. Estate and gift taxes are greatly reduced or eliminated on the assets placed in the trust.
A Charitable Remainder Annuity Trust (CRAT) is designed to offer a foundation a lump sum upon the conclusion of a particular trust. Assets are donated into the trust and the trust pays the beneficiary for a stated period of time. Once the time-frame expires, the remainder of trust is transferred to the foundation.
A Charitable Remainder Unitrust (CRUT) pays a beneficiary a fixed percentage of the principal of the trust as it is revalued annually. This type of trust provides your donor with the flexibility to make additional gifts to the trust. Ultimately, upon the termination of the trust, the remaining principle will be transferred to the foundation.