Estate Planning

Life Income

If you are considering a major gift, your gift of cash or stock in the form of a “life income gift” can significantly increase your income.
A life income gift allows you to transfer assets now while continuing to receive income from cash, stock, or other property contributed. A life income gift can allow you to:

• Increase your income for life
• Receive a charitable contribution deduction
• If you contribute stock, avoid capital gains tax on the appreciation

A life income gift is often are made through a trust arrangement called a “unitrust” or an “annuity trust.”

With a unitrust, you and/or your spouse (or another beneficiary) receives annually a fixed percentage of the fair market value of the assets in the trust. The income received will vary from year to year, based on how the trust’s investments perform.

With an annuity trust, you and/or your spouse (or another beneficiary) receives a fixed amount from the trust each year. This amount is agreed upon when you create the trust; it stays constant, no matter what happens with the stock market or interest rates.

A charitable remainder trust provides income to the donor for a period of time (life). Afterwards, the trust would mature and remaining assets go to one or more of the charities.

Please note that life income gifts need to be tailored to the donor's circumstances and are typically developed by the donor's own advisors and not by CNPS. However, please feel free to call CNPS Development Director to discuss general approaches that might be attractive to you.

To discuss a Life Income Gift, please contact:

Stacey Flowerdew
CNPS Development Coordinator
(916)447-2677, ext 204
sflowerdewcnps.org

California Native Plant Society
2707 K Street, Suite 1
Sacramento, CA 94816
Fax: (916) 447-2727

Please note that this is general information and is not presented as specific legal or tax advice. You should consult with your attorney for such advice.