Gifts of Life Insurance

There are a variety of ways to make a charitable gift with insurance policies or trusts. You can name United Way of Jefferson and North Walworth Counties as the primary, secondary, or residual beneficiary of the proceeds of a life insurance policy, or you can simply donate the policy and pay the annual premiums. With a relatively modest outlay, a donor can make a substantial gift while receiving tax benefits.

Life insurance can also be used to replace an asset that has been donated to a charitable organization. This could allow your heirs to inherit a sum of money equivalent to the donated property. Please consult your legal and /or tax advisor as to how to properly structure any such life insurance policy.

Gifts of Retirement Funds

Donating retirement assets is one of the best ways to make a charitable gift because it is easy and because it avoids the double taxation of income and estate taxes that can diminish its value to your heirs (the loss is often close to 70%). When you name United Way of Jefferson and North Walworth Counties as the beneficiary of your Individual Retirement Account (IRA), pension plan, 401(k) or other retirement account, the proceeds are free from income tax, estate tax, and generation-skipping taxes. Donations can also be made by creating a charitable trust that is funded with an IRA or other retirement account.

To donate retirement assets, simply contact the fund custodian for the forms necessary to designate United Way of Jefferson and North Walworth Counties as your beneficiary.

Giving Through Your Will

One of the most popular and easiest ways to make a planned gift is through your will or living trust. Various options and examples of bequest language are:

Percent of Your Estate:
“I give to the United Way of Jefferson and North Walworth Counties, Fort Atkinson, Wisconsin           % of my estate.”

Specific Amount:
“I give to the United Way of Jefferson and North Walworth Counties, Fort Atkinson, Wisconsin the sum of $            OR            shares of stock in                                  company or my real property located at:           (full address)          .

Residue (Remainder) of Estate:
“I give to the United Way of Jefferson and North Walworth Counties, Fort Atkinson, Wisconsin all the residue of my estate.”

Contingent:
“In the event that           (individual's name)           shall not survive me, then I give (said sum or property) to the United Way of Jefferson and North Walworth Counties, Fort Atkinson, Wisconsin to be used for its charitable purposes.”

Please note that even if your will is already written, you can add a gift to the United Way of Jefferson and North Walworth Counties through a simple codicil (amendment) without having to write a completely new document.

Gifts that provide income

Certain charitable vehicles can provide you with a life income with the remainder going to charity. These options ensure an income stream for you and / or your designated beneficiaries and then will leave a residual gift to United Way of Jefferson and North Walworth Counties. They also provide you with the opportunity to prioritize the benefits of stability, simplicity and flexibility.

Charitable Gift Annuities
For donors seeking a stable and predictable annual income from their charitable gift, a Charitable Gift Annuity is commonly a good option. This type of annuity is basically a contract between you and the United Way of Jefferson and North Walworth Counties. The donor makes an irrevocable gift of cash, stock or another approved asset and, in return, the United Way agrees to pay a fixed annual sum, or annuity, to the donor and / or beneficiary for life. The older the annuitant, the greater the interest rate paid and the higher the guaranteed fixed payment.

Pooled Income Funds
For those who prefer fewer complexities and lower costs than other income-providing charitable gifts, pooled income funds may be a good choice. Similar to a mutual fund, this option combines the irrevocable gifts of many donors into a single pool that is professionally managed and invested. The donor or beneficiary receives his / her share of the fund’s annual income for the duration of his / her life, after which the donor’s shares are transferred to the United Way of Jefferson and North Walworth Counties Endowment Fund.

Charitable Remainder Trust
Designed for more substantial gifts than Charitable Gift Annuities or Pooled Income Funds, a variety of Charitable Trusts are available to suit different donor requirements. Charitable remainder trusts are sometimes also refereed to as split interest trusts, Charitable Remainder Annuity Trusts or Charitable Remainder Unitrusts as follows:

Charitable Remainder Annuity Trust (CRAT)
For donors preferring a fixed annual payment, this trust is a good option. Upon the donor’s death, the balance of the trust passes to the United Way of Jefferson and North Walworth Counties. If the trust is created during the donor’s life, the donor obtains an immediate charitable income tax deduction for the present value of the charitable remainder interest. If the trust is created at the donor’s death, the donor’s estate is entitled to an estate tax charitable deduction for the actuarial value of the charitable interest. No additional gifts may be made to the trust after its initial funding.

Charitable Remainder Unitrust (CRUT)
Charitable Remainder Unitrusts operate much like a Charitable Remainder Annuity Trust. One difference between the two is that the donor / beneficiary receive an annual payment that fluctuates with the value of the trust assets. Often, this may be a benefit when trust assets are appreciating faster than the payout rate. The second important distinction is that additional deductible gifts may be made to a unitrust after initial funding.