Planned Giving

Plan for a future gift to SMMEF.

Listed below are common vehicles for making a planned gift. We recommend that you consult your attorney, tax advisor and financial planner for assistance in making a planned gift.

Bequests

The easiest way to provide a planned gift to support SMMEF is to include a bequest in your will or living trust. You can do this by either drafting a new trust or will or by amending your trust or adding a codicil to an existing will.

Charitable Remainder Unitrusts (CRUTS)

CRUTS pay a return based on a percentage of the principal of the trust as valued each year. A payout rate is determined on the date the gift is made. If the assets are wisely invested and the principal value of the trust goes up, the payout amount goes up, too (and vice versa). You can make additional contributions to a CRUT in later years. If you fund a CRUT with appreciated assets, there will be no capital gains on the sale of that asset, even though you are retaining the income for life. You receive a charitable deduction in the year you create the CRUT. The amount of the deduction is based on several factors including the chosen payout rate and the ages of the income recipients.

Charitable Remainder Annuity Trusts (CRATS)

CRATS pay a fixed dollar amount to the designated income recipients based on a percentage of the initial contribution, chosen on the date the trust is established. Once the payout is established it never changes, no matter what happens to the principal value of the trust. Sales by CRATS of appreciated assets will not be subject to capital gains taxes.

Upon the death of income recipients designated in a CRUT or a CRAT, the remainder of the principal goes to SMMEF, and can be used as the donor designates, to create a named endowment fund in the donor’s honor, to fund a particular program or to support the educational work of SMMEF.

Charitable Lead Trusts

In a charitable lead trust, the income is paid to SMMEF. At a predetermined time, the trust principal remainder is returned either to the grantor or to some other beneficiary. This trust is a creative way to provide a gift right now and still use your assets for your future family needs.

Life Insurance

If you have a paid-up or partially paid-up life insurance policy that you no longer need, you can give it to SMMEF and receive an immediate income tax deduction for the cash value of the policy. Or, you can purchase a new life insurance policy with SMMEF as the owner and beneficiary. In this case, all future premiums are tax-deductible as a charitable contribution.

For help making a planned gift, please call (310) 396-4557.