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Planned and Life Income Gifts . . . Leaving a Legacy

Bequest

  • Planned and Life Income Gifts
    You specify a gift in your will or revocable trust to be effective upon your death.
  • Benefits to Donors
    You retain control over the property during your lifetime.
    Gifts may be defined as a specific dollar amount, as a specific asset, or as all or a portion of your residuary estate.
    An estate tax deduction is permitted for the gift.
  • Benefits to Foundation
    Blue Ridge Community College Educational Foundation receives the gift upon your death.

Charitable Remainder Trust

  • Planned and Life Income Gifts
    You create an irrevocable trust during your lifetime, or upon your death, and transfer assets to the trust.
    You may designate one or more income beneficiaries (including yourself) to receive a fixed dollar amount (annuity) or a fixed percentage of the trust assets (unitrust) each year in annual or more frequent installments.
    The annuity or unitrust may be paid for a period of years or for the lifetimes of the income beneficiaries. Following the death of the income beneficiaries or the expiration of the term of years, the remaining trust assets pass to BRCC Educational Foundation.
  • Benefits to Donors
    You may provide an income stream for yourself or your family members for life or a period of years.
    If you create the trust during your lifetime, you may claim an income tax deduction in the year the trust is created for a portion of the gift.
    The trust is tax-exempt, so all proceeds from the sale of the assets contributed to the trust may be invested without reduction for capital gains taxes.
    Annuity or unitrust payments received by the income beneficiaries are generally taxable as a blend of ordinary income, qualified dividends, and capital gains, depending on the character of the income earned by the trust.
  • Benefits to Foundation
    Blue Ridge Community College Educational Foundation receives the remaining trust assets upon the death of the income beneficiary or the expiration of the term of years.

Retirement Plans (Gifts at Death)

  • Planned and Life Income Gifts
    You designate Blue Ridge Community College Educational Foundation as the beneficiary of all or a portion of your IRA or other qualified retirement plans.
  • Benefits to Donors
    You control the IRA until your death and may revoke the beneficiary designation at any time.
    The portion of your IRA passing to Blue Ridge Community College Educational Foundation qualifies for an estate tax charitable deduction.
  • Benefits to Foundation
    Upon your death, the Educational Foundation receives the designated portion of the IRA free of estate and income taxes.

Qualified Charitable Distributions from IRAs

  • Planned and Life Income Gifts
    The 2015 PATH Act permanently enacted a provision that allows certain IRA account owners to make tax free distributions from their IRAs to eligible charitable organizations. Qualifying charitable distributions may be made by individuals age 70-1/2 and older in amounts of up to $100,000 per year, however, the amounts must be paid directly to a qualified charitable organization from the IRA. IRA owners are required to begin withdrawals from their IRAs after age 70-1/2 and must generally pay income tax on the amounts distributed. This provision of the law allows the IRA owner to instead redirect their IRA distributions, up to $100,000, to a qualified charitable organization. These charitable distributions are excluded from the taxpayer’s federal taxable income, so they are not subject to federal income taxation.
  • Benefits to Donors
    Transferring an IRA distribution to Blue Ridge Community College Educational Foundation allows a donor to avoid federal income taxes (and possibly some state income taxes) on the amount distributed. These qualified charitable distributions can be used to satisfy the donor’s required minimum distributions.
  • Benefits to Foundation
    The Blue Ridge Community College Educational Foundation receives the distribution free of income taxes.

Charitable Lead Trust

  • Planned and Life Income Gifts
    You create an irrevocable trust during your lifetime, or upon your death, and transfer assets to the trust. You may designate the Educational Foundation to receive a fixed dollar amount (annuity) or a fixed percentage of the trust assets (unitrust) each year in annual or more frequent installments.
    The annuity or unitrust may be paid for a period of years or for the lifetime of an individual (the “charitable term”). Following the expiration of the charitable term, the remaining trust assets pass to your family members or to other named beneficiaries.
  • Benefits to Donors
    The trust may be structured so that the trust assets revert to you or your estate after the charitable term. This would allow you to receive an income tax deduction for the value of the charitable interest in the year the trust is created, even though the payments to the Educational Foundation are spread over a number of years.
    The trust may be structured so that the trust assets pass to your children, grandchildren, or other family members after the charitable term. In this case, in the year the trust is created you would receive an estate or gift tax deduction (but no income tax deduction) for the value of the charitable interest, which would reduce the value of the remainder interest passing to family members for estate and gift tax purposes.
    With careful drafting, the trust may be structured to give you both an income tax and an estate/gift tax deduction in the year the trust is created.
  • Benefits to Foundation
    Blue Ridge Community College Educational Foundation receives the benefit of the annuity or unitrust payment during the charitable term.

Professional Advisors

Blue Ridge Community College Educational Foundation works with professional advisors including estate planning attorneys, accountants, financial advisors, insurance professionals, trust officers, and other professional friends who serve our area donors, their families, and corporations.

Your clients may already be donating regularly to Blue Ridge Community College Educational Foundation or are interested in learning more about how they can make an investment in the future of their College and the lives of others in our community. We can work with you to inform your clients of the needs and priorities of the College and match them with giving opportunities according to their specific interests and needs.

It is a pleasure to partner with our professional advisors. If you would like us to meet with you and your clients, please e-mail or call us to schedule a time that works best for you.

Learn More About Us

Contact Us

Blue Ridge Community College Educational Foundation
180 West Campus Dr.
Flat Rock, NC 28731

Phone: (828) 694-1710
Fax: (828) 694-1690

brccef@blueridge.edu

or use our contact form to send general questions or inquiries.