With our Estate Planning Guide and Representative to walk you through the process, you can ensure peace of mind and security for you and your loved ones and continue your impact for future generations.
Often, we’d like to give more to our favorite charitable causes, but there simply isn’t enough resources available. What if you could give a lasting and permanent gift…one with bigger impact than you ever dreamed possible? What if you could do it in a way that honored and protected your loved ones inheritance at the same time? That is possible with a planned gift made through your estate.
If estate planning is something you’re thinking about for the first time, or if you need to update an older estate plan, we have resources and people available to help you.
We have an experienced partner with expertise in the technical aspects of business transition, retirement and estate planning. All services are complimentary for our Forward Edge Family. Our partner can assist with questions such as:
We can help with all of this while significantly including stewardship in the planning decisions you make. If you have questions about estate planning, call 360-558-5889. Or fill out the form below and someone from Forward Edge will contact you.
If you’re interested in donating to Forward Edge, but have publicly traded stock that has appreciated in value, it is more advantageous to you to donate the stock rather than the cash. Why? Because any capital gains tax you would have incurred if you sold the stock will be avoided when you give it to Forward Edge instead. Then, if you happen to like that particular stock, you can buy it again with your available cash. Contact our Controller, Tim Jones, to donate stock: timjones@forwardedge.org or (360) 558-5893.
While cash, CDs and marketable securities are thought of most often when making a gift to a charitable organization, real estate is sometimes the best gift of all. Many people reach a stage in life where they simply don’t want the management responsibility that accompanies property ownership.
For those who have rental apartments or commercial buildings, not only can they avoid capital gains tax, but they can avoid depreciation recapture tax as well. For those with farms or vacation homes, life-income arrangements, such as CRTs or Gift Annuities, can be equally rewarding.
Call Forward Edge at 360-558-5889 and a representative will be happy to discuss a gift of real estate with you.
Forward Edge is able to receive life insurance gifts in two ways. First, people often have what is called a “paid up” policy. In other words, they have owned the life insurance for so long that cash value has grown inside the contract. Sometimes the cash is significant enough that the earnings on that cash are enough to pay the premiums. In those instances, the life insurance is deemed to be “paid up.” The second way to give through a life insurance plan is by deeming Forward Edge a beneficiary of the cash surrender value of the policy.
NOTE: Forward Edge does not participate in start-up life insurance programs, in any form, where the goal is to have donors make donations with the expectation that Forward Edge will use those proceeds to pay insurance premiums.
Recently, Congress changed the rules on retirement plans. Today, the payout rate requirement after age 70.5 is much lower than it used to be. Consequently, as people get into their 80s and 90s, it’s more likely that their IRA, KEOGH, or 401k balances will remain higher. That’s good news for most older Americans!
However, there is a looming…and often large…tax on retirement plans that people don’t often consider while doing their estate planning. Here’s how it works:
Congress allows each of us to put money into a retirement account during our working years tax-free. In other words, we don’t have to pay income tax on the amount of money we place in IRAs, KEOGHs, or 401ks. Additionally, these accounts get to compound in value tax-free to grow as quickly as possible.
However, the IRS doesn’t forget that those very same retirement plans have never been subject to tax! So, if a person passes away while holding the retirement plan in their estate, income tax to your heirs, and possibly estate taxes, will be due.
To avoid this scenario, it’s often advisable for people simply to name their favorite charitable organization(s) as the remainder beneficiary of their retirement plan. This can be easily done by calling the retirement plan administrator and filling out a new beneficiary designation form. Charitable organizations are not subject to estate or income tax, so the full value of the retirement plan can become a gift.
Often referred to as “bequests,” a person, or married couple, can name Forward Edge as a beneficiary in their estate documents, using either a Will or Living Trust. This is one of the most meaningful ways a charitable organization can be supported by those passionate about its cause. And it’s easy to do! Simply call us at 360-558-5889 and our staff will be happy to provide language you can give your attorney as you update, or complete, your estate plan.
Some people like to include a portion of their Will or Living Trust to a charitable organization. This is sometimes referred to as a “Charity Child.” For example, a married couple with three children may desire to leave each child 25% of their estate and allocate their “charity child” the remaining 25%.
Charitable Remainder Trusts (CRTs) can be one of the most powerful planning tools available as people do retirement and estate planning.
CRTs afford the donor potentially five favorable tax outcomes by virtue of one financial transaction. They are: 1) capital gain tax avoidance 2) income tax deduction, 3) tax-free compounding 4) income payments taxed favorably, and 5) estate tax elimination (for those people with large estates).
Finally, life insurance can sometimes be a viable part of a CRT plan. If the donor(s) want their loved ones to participate in the full value of their estate, then creating a life insurance trust with some of the CRT tax savings and additional cash flow can allow loved ones to “remain whole” as it relates to their inheritance.
