Have you considered including APEB in your estate planning so that we can continue to serve generations of Californians to come? By leaving a legacy to APEB, you will receive the satisfaction of supporting a cause that you care deeply about, while providing a foundation for the future of HIV/AIDS service and care in this community.
Your planned gift could allow you to receive immediate income tax benefits as well as future transfer tax benefits and it can sometimes be designed to increase your current income or retirement income.
Bequests are gifts made through your will. They can be made in the form of a specific gift of cash or property, a general sum of money, or a percentage of the remainder of an estate or trust and they are distributed at your death. The full amount of your bequest is usually deductible for estate tax purposes.
For more information on planned giving options, or to set up an appointment to explore how a charitable gift to APEB may fit into your overall estate planning, please contact Nasheedah Muhammad at 510-663-7980 or firstname.lastname@example.org.
Charitable Remainder Trust
A Charitable Remainder Trust (CRT) is created by a transfer of assets to a trust that will pay you or another beneficiary income for life or for a period of years. At the death of the last beneficiary, the remaining property in the trust passes to APEB.
There are two basic kinds of CRTs:
Annuity Trust: provides beneficiary(s) a fixed dollar income and is determined when gift is made.
Unitrust: provides beneficiary(s) a fixed percentage of the fair market value of the trust assets, recalculated annually or at some other fixed period.
Tax Advantages of a CRT
Receive an immediate charitable income tax deduction.
Tax-free Diversification of the assets – the trust pays no capital gains tax on the sale of trust assets
The entire value of the trust at your death is excluded from your estate and is not taxed.
Charitable Lead Trust
A Charitable Lead Trust (CLT) is created by a transfer of assets to a trust that will pay APEB income for a term of years. At the end of the term, you or a beneficiary receives the remaining trust assets. A CLT can be created during life or at death (under the terms of your will). This planned giving option is a great way to transfer assets to future generations while benefiting APEB.
Retirement Plans are one of the best assets to own during your life but they are the worst asset to own at your death.
At death, retirement plan assets are subject to income and estate taxes and their value can be reduced by as much as 75%. Naming APEB as beneficiary of funds in your retirement plan can be easy and will reduce the size of the taxable assets and avoid subjecting the estate or beneficiary to income taxation at your death.
Contact the financial institution handling your Individual Retirement Account (IRA), or other retirement plan or profit sharing account. A simple form from the manager of the fund is normally all that is required to name APEB as a beneficiary of your retirement plan.
Life Insurance Plan
Using a life insurance policy in your planned giving is a perfect way to make a leveraged gift to APEB.
By making small payments each year into your policy for a number of years, you can leave a bequest of sizable proportions to APEB. Upon the death of the insured, the policy proceeds going to APEB will be an estate tax charitable deduction.
There are two ways to ways to give a gift of a life insurance policy:
Gift of existing policy – APEB becomes the owner and beneficiary. You get an immediate charitable income tax deduction for the lesser of current cash value or premiums paid. Any future premiums you pay are deductible as contributions.
Name APEB as a beneficiary of a new or existing policy – You keep control of the policy while naming APEB as a full or partial beneficiary. For this gift you are entitled to a charitable deduction for the value of the initial premium and you will receive additional deductions when you make later premium payments.
APEB’s correct legal designation is: AIDS Project of the East Bay, Federal Tax ID number 94-3061583. We encourage you to consult with your own advisor before creating an estate plan or deciding whether to create a planned gift for APEB.
APEB's Development Department is prohibited from giving legal or financial advice, and nothing provided here should be interpreted as such.