Giving Through Your Estate Plans


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You can play a part in ensuring Triangle’s tomorrow through gift planning today. Depending on the arrangements you choose, you can also:

  • reduce your income taxes
  • avoid capital-gain tax
  • increase your spendable income
  • retain payments for life
  • achieve no-cost, worry-free asset management

The Triangle Education Foundation staff welcomes the opportunity to work with you and your legal and financial advisors to establish individual deferred gift arrangements. Please be sure to notify the Foundation if you are planning to include or have already included Triangle in your estate plans.

As with outright gifts, deferred gifts may be restricted and designated to specified programs based on the donor's wishes, or they may be left unrestricted to give the Foundation the flexibility to meet unforeseeable needs. To learn about the various planned giving vehicles, please select from the options listed below or contact:

Amy Buchheit, CFRE
Senior Director of Development
Phone: (317) 203-7759

Bequests
Whether your bequest to the Triangle Education Foundation is in the form of cash, securities, real estate, or other property, the gift is deductible for federal estate tax purposes, with no limit on the amount of your charitable estate tax deduction. Your bequest to Triangle does not generally incur state inheritance or estate taxes. For larger estates, a bequest will save the donor up to fifty-five cents on the tax dollar. A gift through your estate provides the following benefits:
The opportunity to make a major gift while preserving assets during your lifetime;
Reduction in federal estate taxes;
Significant, and much appreciated, support for Triangle in your name and/or area of specific interest.
To make a bequest to the Foundation you may create a new will, add a codicil to your current will, include the Triangle Education Foundation in your revocable trust, or name the Foundation as the residual beneficiary of your qualified retirement plan or insurance policy.

There are two principal types of bequests: specific and residuary. In a specific bequest, your will specifies that a dollar amount or a particular asset, such as securities, real estate or tangible personal property. In a residuary bequest, your will gives the Triangle Education Foundation all or a percentage of the remainder of your estate after the payment of estate-related expenses and other specifically named legacies.

Naming Triangle as a beneficiary of your IRA, Keogh, tax-sheltered annuity, qualified pension or profit-sharing plan is a good way to make a bequest. If allowed to remain in your estate, your plan will be subject to both estate and income taxes when received by your heirs. For larger estates, heirs will receive less than thirty cents on the dollar of retirement plan assets. Designation of these assets to the Foundation will provide Triangle with their full value.

The laws governing bequests vary from state to state. It is important that you review your will with your attorney or advisor to make certain that it meets all legal requirements and adequately reflects your desires regarding the distribution of your estate.

Click HERE for more information on giving through your will.

Life Income Gift

Charitable Gift Annuity
A charitable gift annuity is a simple contract between you and the Triangle Education Foundation. You make an irrevocable gift of at least $5,000 and receive a fixed, guaranteed income from the Triangle each year for your life and/or the life of another person of your choosing. At the end of the annuity period, the remaining value of the annuity gift will be allocated in your name to the Foundation.

You can start drawing the income immediately or defer the start of the annuity payments until a later date. Because the payments can be deferred, gift annuities are a popular vehicle for supplementing retirement income. Annuity rates are based on the age of the annuitant(s) at the time of the gift and on whether the income payments begin immediately or are deferred.

With a current or deferred charitable gift annuity, you will:

  • receive an income stream for life that will be backed by the assets of the Triangle Education Foundation.
  • receive an immediate income tax deduction upon making the gift
  • reduce capital gains taxes, which can spread out over a number of years
  • receive a portion of each annuity payment as a tax-free return of principal
  • leave a legacy by making a generous gift to the Triangle Education Foundation.

Deferred-payment Gift Annuity
The deferred-payment gift annuity involves the current transfer of cash, marketable securities, or under some circumstances, tangible personal property or real estate, in exchange for which the charitable organization agrees to pay the donor an annuity starting at a future date - usually at the donor’s retirement. The gift can consist of a single transfer, a series of transfers, or periodic transfers to the plan in high-income years.

You realize an immediate charitable deduction for the gift portion of each transfer to the deferred gift-annuity plan. A portion of each annuity payment, when the payments begin, will be a tax-free return of principal over the life expectancy of the annuitant. When appreciated, long-term, capital-gain securities are transferred, any reportable capital gain is spread out over the donor-annuitant’s life expectancy.

Click HERE to see how you can benefit from a Charitable Gift Annuity using our free gift calculator!

Charitable Remainder Trust
A charitable remainder trust can provide you or you and your spouse with income for life, or for a specified term of years, while providing a charitable income tax deduction. If you fund the trust with appreciated securities, you can avoid capital gains taxes. You also have the option of establishing and naming an endowed fund to benefit a department or program of your preference at Triangle. At the time of the trust’s termination, the principal becomes part of Triangle Education Foundation’s endowment. Charitable remainder trusts offer the greatest flexibility of all the different types of planned gifts. The chief benefits include:

  • life income to one or more beneficiaries
  • increased income on low-yielding assets
  • a substantial charitable income tax deduction
  • capital gains tax avoidance on the transfer of appreciated securities or real estate
  • reduced estate taxes
  • professional investment management
  • the opportunity to establish an endowed fund at Triangle Education Foundation or to provide a substantial benefit to Triangle upon termination of the trust.

Retained Life Estate
One of your valued possessions, your home, can become a valued gift to the Triangle Education Foundation even while you are still living in it, and even if you want your spouse or other person to live there for life. This arrangement is called a retained life estate.

By deeding your home to us now, you can obtain a sizable income tax deduction this year. The amount depends on the value of the property and your age (and the age of any person given life use). In addition, you retain the right to rent your home or make improvements to it. You continue to have responsibility for maintenance, insurance and property taxes.

Any personal residence qualifies for this tax deduction including a farm (with or without the house), vacation home, condominium, even stock in a cooperative housing corporation. Your gift to us must be an irrevocable remainder interest where after your life use and that of any survivor, Triangle receives the property outright.

Charitable Lead Trust
A charitable lead trust allows you to transfer substantial assets to your family at greatly reduced estate and gift tax cost. The concept is simple. You make a gift to a lead trust. The lead trust makes payments to the Triangle Education Foundation for a term of years. At the end of the term, the assets are transferred to your family. However, you make the gift to your family in the year the trust is created. Therefore, you are entitled to a substantial deduction because of the charitable interest and the time delay before your family enjoys the assets. A trustee independently manages the trust. With a charitable lead trust, you will:

  • reduce estate tax liability because the trust assets will be removed from the donor’s estate
  • benefit from expert trust management provided by the same professionals who manage the Institution’s endowment
  • make a generous gift to the Triangle Education Foundation

Gift of Real Estate
You can make a gift of residential or commercial real estate to the Triangle Education Foundation and receive substantial financial benefits. It is important to discuss the proposed gift of real estate with the development staff at Triangle to make certain that the property is marketable and debt-free. We can provide you with a detailed illustration of how a proposed gift of real estate might work for you under nearly any given circumstance.

Gifts of Retirement Benefits
Tax-deferred retirement plan benefits are great sources of retirement income, but not always a good choice for making gifts to children and grandchildren. You may consider using retirement plan benefits to make a significant gift that will support Triangle. And because of the estate and income tax treatment of retirement plan benefits, the cost of your gift to your estate and heirs is often relatively small.

Retirement-plan benefits include assets held in Individual Retirement Accounts (IRAs) and assets held in accounts under 401(k) plans, profit-sharing plans, Keogh plans, and 403(b) plans. Income taxes on retirement-plan benefits are deferred but not avoided. That means as these assets are withdrawn during retirement by the account owner or the account owner’s spouse, they are subject to income tax. In addition, retirement-plan benefits left to children, grandchildren, and other beneficiaries at the death of the account owner are subject to both income tax and estate tax. This combination of income taxes and estate taxes can result in a tax-hit equal to 75% or more of the retirement-plan benefits.

The Pension Protection Act
A new tax-saving opportunity was extended through December 31, 2013 for donors who are 70½ or older, or will turn 70½ on or before December 31, 2013 . The extension of the Pension Protection Act extends the tax incentives for making charitable gifts directly from your IRA.

The benefits to you:
• You may be receiving minimum distributions from an IRA as part of your retirement income since you turned 70½. You may not need these IRA distributions, but by law you have to take them and pay income tax on them. Under the new law, if you transfer those minimum distributions to your favorite charity, you will avoid paying income tax on them.
• Your transfer will not generate a tax deduction, so you do not have to itemize this tax deduction to receive the benefit.

A couple of rules apply:
• You are currently aged 70½ or older, or will be on or before December 31st, 2013
• You make your gifts on or before December 31st, 2013
• Your gifts do not total more than $100,000 per year
• Your funds are transferred directly from an IRA or Rollover IRA
• You make your gift to a public non-profit charity (such as Triangle Education Foundation)

Making a gift to the charitable organization of your choice is easy – please contact your IRA custodian for the necessary transfer forms.

Gifts of Life Insurance
A gift of life insurance can take several forms. You may wish to name the Triangle Education Foundation as the beneficiary of a group policy or a policy you own. In that case, the proceeds of the policy would pass to Triangle at your death.

If you hold a fully paid-up life insurance policy that you no longer need, you may transfer ownership of the policy to the Foundation. You then are entitled to an immediate charitable income tax deduction for a portion of the value of the policy.

Click HERE to contact Amy Buchheit, Senior Director of Development, for our Tax ID/EIN information.

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