A retained income gift allows you to receive income and make a long-lasting gift to the Girl Scout Council of Colonial Coast. There are several gift options to help you achieve your planning goals and provide income for yourself and/or others you so designate.

Trusts with the remainder of the principal designated to the Girl Scout Council of Colonial Coast, wills or prearranged trusts, may provide for the holding of the principal of a donor’s estate in trust. This trust will provide payment of specified amounts to members of the donor’s family for life, and for payment of the principal to the Girl Scout Council of Colonial Coast upon their death.

Simple wills, leaving everything to a loved one and/or charity are generally used for donors with estates under the Federal Estate Tax threshold, which is currently $1.5 million.

Charitable Remainder Trust

One popular trust agreement is the Charitable Remainder Trust. Many people purchase an asset hoping that it will increase in value. When it does, they would like to sell it and either reinvest in another growth asset or spend the proceeds. The issue that arises is that capital gains tax must be paid on the appreciation if they sell. Therefore, many people hold on to highly appreciated property rather than sell and pay the tax. Most of the concepts in planned giving can be explained using the Trust as an example. A donor can put the asset into a Trust. This is an irrevocable agreement. The Trust sells the asset and reinvests, perhaps in a portfolio of stocks and bonds. The Trust then pays a percentage of the value of the Trust each year to the donor for the donor's lifetime. At the end of the donor's life, the value in the Trust goes to the Girl Scout Council of Colonial Coast.

Because the Girl Scout Council of Colonial Coast is a 501(C)3 organization and is tax-exempt, the Trust itself is tax-exempt and no capital gains taxes are paid when the Trust sells the asset.

Here is how a Charitable Remainder Trust works:

1. You create a Charitable Remainder Trust and transfer assets to it.

2. The trustee invests the assets in order to pay the beneficiary an annual income. The income may continue for one or more lifetimes or for a term of 20 or fewer years.

3. When the Trust term ends, whatever remains in the Charitable Remainder Trust passes to the Girl Council of Colonial Coast.

Assets that can be used to fund a Charitable Remainder Trust:

• Cash
• Appreciated securities sold on a major stock exchange
• Real estate (as long as it isn’t mortgaged)
• Stock in a closely held corporation

There are two types of Charitable Remainder Trusts:

Trust

By establishing a Charitable Remainder Trust, you and/or others you authorize receive income for life or a term of years while ultimately benefiting the Girl Scout Council of Colonial Coast for future generations. The Trust’s annual payments are based on a fixed percentage of the Trust’s value. Each year the Trust’s assets are revalued and your income payment will change and may grow over time. A Trust can provide an excellent hedge against inflation if the principal of the Trust increases. Additional gifts can be made to a Charitable Remainder Trust.

Annuity Trust

Another type of trust agreement is the Charitable Remainder Annuity Trust. Many older donors prefer to have a fixed payout rather than a percentage payout, which can vary year to year, as in the Trust. An annuity trust is similar to a Trust, etc. but instead of receiving a percentage of the trust value, the donor receives a fixed dollar amount each year for the life of the trust, while ultimately helping to preserve Girl Scouting for future generations. Annuity Trusts provide considerable tax benefits along with paying regular income. Additional gifts cannot be made to a Charitable Remainder Annuity Trust. This type of Trust works best for individuals who would like a fixed income for a term of years.

Charitable Lead Trust is a “mirror image” of a Charitable Remainder Trust. A Lead Trust pays the income to charitable beneficiaries for a term of years or for the donor’s lives, afterwards the remaining Trust assets (the principal plus any growth) goes to the donor’s heirs or other non-charitable beneficiaries.

Life Income Contracts are gifts held in Charitable Trusts with the donor or their designated beneficiary receiving the interest from the gift principal.

For more information on planned giving, please contact the Fund Development department by email or call (757) 547-4405 ext. 247.