Planned gifts provide a way to make a lasting positive impact while also creating valuable income tax, capital gains tax and/or estate tax advantages. A wide range of planned giving options are available, including bequests, retirement plan assets, life insurance, life tenancy, and income-producing gifts.
Planned Giving
- Bequest by Will
- Charitable Beneficiary Designation
- Gift of Real Estate
- Gift of Life Insurance
- Charitable Lead Trust
Bequest by Will
Including a charitable bequest in your will is a simple way to make a lasting gift to AIMS.
How it works
- You include AIMS in your will as a bequest; we can help you or your attorney with recommended language.
- Your gift is recognized by AIMS in your name, in the name of your family, or in honor of any person or organization you choose.
- Your charitable gift is excluded from your assets for estate tax purposes.
- We handle all the administrative details.
The benefits
- Making a bequest to AIMS is an easy way to transfer assets to charity. And, you can decide to do it at any age by adding to an existing will or drafting a new one. In doing so you’ll have a lasting impact on the lives of young musicians while enjoying the assets you need to maintain your current lifestyle. Plus, you are able to distribute some or all of your assets, tax free.
- You can give cash, appreciated stocks, or other assets. Some of the most tax-efficient asset types to give through your estate plan come from retirement plan accounts, since retirement accounts can be subject to both estate and income taxes. Through your will you can choose to give a stated dollar amount, a specific property, a percentage of your estate, the remainder after distributions to other beneficiaries, or you can make your gift contingent on certain events.
Charitable Beneficiary Designation
Naming AIMS as a beneficiary of your retirement plan is not only easy to do, it is also a way to make a significant and lasting gift that may not be possible during your lifetime.
How it works
- You designate AIMS as a full or partial beneficiary of your qualified retirement plan using a form supplied by the policy underwriter or plan administrator.
- When you are no longer living, the benefit comes to AIMS. Your gift is recognized in your name, in the name of your family, or in honor of any person or organization you choose.
- We handle all the administrative details.
- Your gift can be placed into an endowment that is invested over time. Earnings from your fund are used to support the ongoing work of AIMS. Your gift is a permanent source of capital, helping to promote the development of young musicians forever.
More benefits
- If you are concerned with potentially high estate taxes, the charitable beneficiary designation is a good choice because the benefit payment is generally excluded from your estate for tax purposes. And, because you may change the beneficiary designation at any time, your decision is revocable.
- One of the most tax-efficient ways to give back to your community is by designating AIMS as a beneficiary of your retirement plan, whether it is a 401(k), 403(b), IRA (individual retirement account), or other qualified retirement program. These assets could be taxed at rates as high as 70 percent upon your death. Estate taxes may be due in addition to the taxes your heirs may pay on the income in respect of the decedent (IRD). For these reasons, many advisors recommend retirement plan assets as the first to be designated for charitable purposes.
- Although your retirement plan beneficiary form overrides your will, it is important that both documents are up-to-date and consistent.
Gift of Real Estate
Making a charitable gift of real estate through AIMS can help you turn your property gains into lasting support for music. The value of your real estate may exceed that of any other asset you own. With the help of the AIMS, you can use it to fulfill your charitable interests and receive financial and tax benefits.
How it works
- You identify real estate property that you would like to give; an appraisal will help you establish its estimated market value.
- We assess the real estate for compliance with our acceptance policies and gather appropriate documentation.
- Your gift can be placed in our endowment or operating reserve fund. Your gift is recognized in your name, in the name of your family or business, or in honor of any person or organization you choose.
- Your gift qualifies for a tax deduction based on its full market value; you avoid the capital gains tax that would otherwise arise from the sale of the property.
- With gifts of real estate, your property gains translate into community impact, so you get a more rewarding return on a major asset.
- We handle all the administrative details.
- Your gift can be placed into an endowment that is invested over time. Earnings from your gift are used to support the development of young musicians. Your gift—and all future earnings from your gift—is a permanent source of capital, helping to do good work forever.
More benefits
- A gift of real estate releases potential that has been tied up for years, enables you to make a bigger charitable difference than you may have thought possible, helps you avoid estate taxes, and minimizes or eliminates burden placed on your heirs. Charitable gifts of real estate range from personal residences and vacation homes to rental properties, farmland, and commercially developed land.
- You may choose to give real estate outright and receive an immediate tax deduction or retain the use of the property during your lifetime and make a planned gift to AIMS. You may also choose to convert real estate into a stream of income for the rest of your life by establishing a Charitable Remainder Trust with AIMS. Doing this lets you transform a low-yield asset into a higher-yield, income-producing asset and claim a tax deduction for the charitable portion of the gift.
Gift of Life Insurance
Life insurance provides a simple way for you to give a significant gift to charity, with tax benefits that you can enjoy during your lifetime.
How it works
- You make AIMS the owner and irrevocable beneficiary of your life insurance policy—you can either give a paid-up policy or continue to pay premiums.
- You receive a tax deduction for the approximate cost or fair market value, whichever is less. If the policy is paid up, you may receive an immediate tax deduction. If it is not, you can claim continuing tax deductions on premium payments you make directly or through gifts to AIMS.
- Your gift is recognized in your name, in the name of your family, or in honor of any person or organization you choose.
- We handle all the administrative details.
- Your gift can be placed into an endowment that is invested over time. Earnings from your fund are used to support AIMS and the development of young musicians. Your gift—and all future earnings from your gift—is a permanent source of capital, helping to do good work forever.
More benefits
- Giving life insurance through AIMS is one of the simplest ways to make a significant contribution to the world of music and establish your legacy of giving. You can make a gift when life insurance is no longer needed for personal financial wealth replacement. You may receive a number of tax benefits, including reduced income taxes and estate taxes. And, if you choose to continue paying premiums through AIMS, you will be entitled to a charitable contribution deduction of up to 50 percent of your adjusted gross income.
- You can replace the dollar value of an asset transferred to AIMS with a life insurance policy. Or you can use regular payments from a Charitable Remainder Trust to establish an irrevocable life insurance trust. The trust can purchase insurance on your life to benefit your heirs. This way, you can make a gift to AIMS and replace the value of this gift within your estate with life insurance proceeds.
Charitable Lead Trust
A Charitable Lead Trust helps you build a charitable fund with AIMS during the trust’s term. When the trust terminates, the remaining assets are transferred to you or your heirs, often with significant transfer-tax savings.
How it works
- You transfer cash, appreciated stocks, real estate, or other assets into an irrevocable charitable trust.
- You can establish a Charitable Lead Trust through your will.
- Your Charitable Lead Trust pays AIMS an annual amount to build a charitable gift. You designate the trust to exist for a specified number of years or until your death.
- You also designate your family or anyone you choose as the final beneficiary of your trust.
- We coordinate all the administrative details with your advisor.
- Your gift can be placed into an endowment that is invested over time. Earnings from your fund are used to support AIMS and the development of young musicians. Your gift—and all future earnings from your gift—is a permanent source of capital, helping to do good work forever.
More benefits
- A Charitable Lead Trust entitles you to a number of financial benefits. It shelters investment earnings from tax and offers gift, estate, and generation-skipping tax benefits. For example, trust assets are removed from your estate for estate tax purposes. You may also capture future gift tax deductions.
- You have several options when establishing a trust. You can create a Charitable Lead Trust during your life or through your will. The trust contributes to charity through AIMS—either for a number of years or for your lifetime. And, you select one of two types of Charitable Lead Trust. A Charitable Lead Unitrust makes annual distributions of a fixed percentage of the trust assets to the charitable beneficiary you establish. If you create a Charitable Lead Annuity Trust, it will generate a fixed dollar amount each year. During its term, the trust can be managed expertly by your advisors, which may help your trust investments grow over time. When the trust terminates, its final assets are transferred to those you designate; any growth in the trust passes to recipients, often with significant transfer-tax savings.