Gift Plans

You can scroll down through this page to review the various Gift Plan options, or click on any of the following links to jump to an individual plan description.

  1. Bequests
  2. Charitable Gift Annuity
  3. Charitable Lead Trusts
  4. Charitable Remainder Annuity Trusts
  5. Charitable Remainder Unitrusts


1. Bequests   


Benefits:

Many people would like to help strengthen the long-term viability of Hanul Family Alliance but feel they cannot afford to make such a gift today. A bequest by will or revocable Trust can be tailored to complement your personal lifestyle and financial goals and also support Hanul Family Alliance. If you have not already done so, please consider putting Hanul Family Alliance in your will or revocable trust.

If you include Hanul Family Alliance in a bequest provision, please notify us so that we ensure your wishes can be fulfilled. Your notification will be treated confidentially.

What are the advantages of making a bequest?

What is the best way to include Hanul Family Alliance in my will?

When including a provision for us in your will, you will want to make sure that your intention is stated clearly and that you have our correct name and address. It would be prudent if you or your adviser calls us before drafting the document to ensure that the information you are including is accurate.

Here are some of your options:

Will my gift be deductible?

A charitable bequest or trust distribution is deductible for federal estate tax purposes, and there is no limit on the deduction your estate can claim. In addition, the gift is usually exempt from state inheritance taxes.

What if I’ve already written my will or trust?

You can amend a will or trust to make a gift without rewriting the entire document. Your attorney can prepare a simple statement, called a codicil, that adds a new bequest to us while reaffirming the other terms of your will. Similarly, he or she can prepare an amendment to your revocable trust to add us as a beneficiary.

What’s the difference between an will and a trust?

Bequest -Sample Language

  1. (a)Unrestricted Gift: A gift that can be used where need is greatestI give, devise and bequeath _______________ (insert dollar amount or item of property to be donated) to Hanul Family Alliance, Chicago, Illinois, to be used for its general purposes.
  2. (b)Residuary Bequest: Leaves any remainder after all other bequests have been paid.  I give, devise and bequeath ______________ (insert % amount) of all the residue of my estate to Hanul Family Alliance, Chicago, Illinois, to be used for its general purposes.
  3. (c)Contingency Gift: Takes effect only if a primary intention can’t be met. In the event that ____________ predeceases me, I give, devise, and bequeath his/her bequest or share to Hanul Family Alliance, Chicago, Illinois, to be used for it's general purposes.

2. Charitable Gift Annuity  back to top  toTopArrow

How it works

Benefits:

Complete Gift Description

Of all the gifts that pay you back, the charitable gift annuity is the simplest, most affordable, and most popular. You make a gift to the Hanul Family Alliance and in return, we agree to make fixed payments to you for life. The gift agreement is a simple contract between you and Hanul Family Alliance. Your payments become one of our general obligations, fully backed by all our assets. At your death, we apply the balance of the gift annuity to the program you designated when you made your gift.

Gift annuities offer attractive tax benefits:

Planning points

Charitable Gift Annuity - Is this gift for you?

  1. (a)You want to make a significant gift to us and receive lifetime payments in return.
  2. (b)You want to maximize the payments you receive from your planned gift -- and you want to lower your income tax on those payments.
  3. (c)You want the security of payment amounts that won't fluctuate during your lifetime.
  4. (d)You also appreciate the safety of your payments being a general financial obligation of the institution.

3. Charitable Lead Trusts   back to top  toTopArrow

How it works?

Benefits

Complete gift description

You want to make a gift but you need to consider your children, too.  What if there were a way to make a gift to the Hanul Family Alliance and pass assets to your heirs in a tax advantage way? The solution is a non-grantor lead trust. A non-grantor lead trust pays income to the Hanul Family Alliance for a period of years and then passes the remaining principal back to the beneficiaries you have selected.

What are the tax advantages of this type of lead trust?

Are there additional features that I should consider?

How is the amount given to Hanul Family Alliance determined?

When you create your trust, you have several options. First, you can decide whether you want us to receive a fixed amount of income each year (an annuity lead trust), or whether we will receive a fixed percent of the value in the trust (a unitrust lead trust). But wait, you have another choice, too. You also decide how long we are to receive income. You may decide it will be for a period of years or based on a measuring life.

What if I want the income to return to me?

This is certainly possible through the Grantor Lead Trust. However, the non-grantor lead trust offers you more significant tax benefits.

How do I create a Charitable Lead Trust?

Setting up a charitable lead trust is not particularly difficult, but you should be advised by an attorney with expertise in the area of charitable trusts and estate planning.  Once your trust agreement is signed, you can fund your lead trust by transferring assets to your trustee.

Charitable Lead Trusts - Is this gift for you?

A charitable lead trust is for you if…

Charitable Lead Trusts - Gift example

Assume that you use appreciated property with an average cost basis of 50% to fund a $2 million Charitable Lead Annuity Trust (CLAT) that makes a 6% annuity payment ($120,000) to Hanul Family Alliance for 15 years, after which the trust principal reverts to your grandchildren in a generation skipping transfer. Assume also that your gross estate is currently $10 million, you have made no previous taxable transfers, you are in the 35% federal income tax bracket, and the state income tax for trusts is 2.5%. Assume further that your average total investment return is 7% over the 15 year term. A 2.4% IRS Discount Rate is used to calculate the value of the remainder interest to your heirs.


CLAT Without Trust
Gross Principal $2,000,000 $2,000,000
Net principal placed in plan $2,000,000 $2,000,000
Benefit to family $2,000,000 $2,846,692
Benefit to Hanul Family Alliance $2,100,000 $0
Total Taxes $0 $2,339,561
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*PLEASE NOTE: This example is for illustrative purposes only and is not intended as legal or tax advice. Consult your legal and tax advisors prior to making any material decisions based on this data.




4. Charitable Remainder Annuity Trusts   back to top  toTopArrow

How it works:

Benefits

Complete gift description

The charitable remainder annuity trust combines the flexibility of an individually managed trust with the stability of fixed regular income. Here's how it works:

What are the tax advantages of this gift?

Planning points

How do I create a Charitable Remainder Annuity Trust?

Setting up a charitable remainder annuity trust is not particularly difficult, but you should be advised by an attorney with expertise in the area of charitable trusts and estate planning.  Once your trust agreement is signed, you can fund your annuity trust by transferring assets to your trustee.

Charitable Remainder Annuity Trusts - Is this gift for you?

A charitable remainder trust is for you if…

Charitable Remainder Annuity Trusts - Gift example

A 70-year-old donor in the 35% tax bracket establishes an annuity trust with $100,000 of appreciated stock, originally purchased for $10,000. Trust pays donor 6.0% of the initial value as an annuity for life. Trust earns an 8.0% average total return. Assume IRS discount rate of 5.8%.

Trust Principal $100,000
Income tax deduction $47,168
Income tax savings (35%) $16,589
Capital Gains tax savings (15%) $13,500
Annual Income $6,000
Projected after-tax benefit to donor $70,247
Projected benefit to Hanul Family Alliance $160,649
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PLEASE NOTE: This example is for illustrative purposes only and is not intended as legal or tax advice. Consult your legal and tax advisors prior to making any material decisions based on this data.


5. Charitable Remainder Unitrusts   back to top  toTopArrow

How it works

Benefits

Complete gift description

The charitable remainder unitrust is one of the most flexible gift plans available.  The unitrust unlocks your ability to make a significant gift to Hanul Family Alliance while addressing multiple financial and family needs. 

The unitrust is an individually managed trust paying its beneficiaries – you, your spouse, family members, or other individuals – income as a fixed percentage of the value of its principal, which is revalued annually. Here's how a unitrust works:

What are the tax advantages of this gift?

Planning points

How do I create a Charitable Remainder Unitrust?

Setting up a charitable remainder unitrust is not particularly difficult, but you should be advised by an attorney with expertise in the area of charitable trusts and estate planning.  Once your trust agreement is signed, you can fund your unitrust by transferring assets to your trustee.

Charitable Remainder Unitrusts - Is this gift for you?

A charitable remainder unitrust is for you if…

    1. You want income paid to your beneficiary for a term of years instead of their lifetime.
    2. You want to donate an appreciating but temporarily illiquid asset to Hanul Family Alliance.

Charitable Remainder Unitrusts - Gift example

A 55 year-old donor in the 35% tax bracket establishes a unitrust with $100,000 of appreciated stock, originally purchased for $20,000. Unitrust pays donor 5.0% of the trust assets re-valued annually for life. Trust earns a 8% average total return. Assume IRS discount rate of 3.4%.

Trust Principal $100,000
Income tax deduction $33,508
Income tax savings (35%) $11,728
Capital Gains tax savings (15%) $12,000
Annual Income $5,000
Projected after-tax benefit to income beneficiary $156,698
Projected benefit to Hanul Family Alliance $228,793
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*PLEASE NOTE: This example is for illustrative purposes only and is not intended as legal or tax advice. Consult your legal and tax advisors prior to making any material decisions based on this data.