Waukesha County Community Foundation WCCF

Advisors Bortz and Peterson To Educate Donors

WCCF is proud to announce a series of 5 educational seminars on smart financial planning to accomplish charitable objectives. The programs will be led by Reb Bortz, CFP and Rusty Peterson, CLU, ChFC. The first session is Wednesday September 10th beginning at 5:30 pm at Country Springs Hotel. If you would like to attend, please contact WCCF to reserve seats at 262-513-1861 or wccf@waukeshafoundation.org.

The September session is titled, “Income for Me Now and A Legacy for My Charity Later,” and includes planning techniques using charitable trusts that help donors to accomplish charitable desires at the same time they address family financial planning. It will be presented by Bortz and Peterson, along with Mark Poker, attorney with Michael Best & Friedrich LLP.

Future sessions will continue over the next 9 months and cover topics including donor advised funds; smart use of life insurance benefits, appreciated securities or other assets; charitable lead trusts; and more.

To Do the Most Good

By Reb Bortz, CFP® and Rusty Peterson, CLU, ChFC

“I deem it the duty of every man to devote a certain portion of his income for charitable purposes; and that it is his further duty to see it applied as to do the most good of which it is capable.”
--Thomas Jefferson

Americans are a charitable group. More than 80% of the money raised by charities in this country comes from individuals.1 In 2006, Americans donated an estimated $295 billion.2

While donating money to charity is certainly good, a giving strategy that utilizes a charitable trust may provide meaningful financial advantages in addition to the personal satisfaction that comes from giving. One such trust is a charitable remainder trust (CRT).

When money, securities, property or other assets are placed in a properly structured CRT, the donors or their beneficiaries receive the income generated by the trust for a specific term (usually life). When the trust expires, the designated charities receive the assets that remain.

For the donor, there are several potential tax benefits to using a CRT. Assets placed in the trust may be partially deductible for income tax purposes. Upon the donor’s death, trust assets are not subject to estate taxes, because they are no longer part of the donor’s taxable estate. Finally, any appreciated assets in the trust may be exempt from current capital gains tax.

Keep in mind that a CRT is irrevocable; therefore, the assets cannot be withdrawn once the trust is formed. Not all charitable organizations are able to use every type of gift, so it is prudent to verify this with the intended recipient. The type of organization you select can also affect the tax benefits you receive. Also, once the charities for the trust are selected, they cannot be changed.

The use of trusts involves a complex web of tax rules and regulations. You should consider the counsel of an experienced estate planning professional and your legal and tax advisors before implementing such strategies.

If you would like to learn more about the CRT and how it could help you “do the most good,” please attend our seminar on Wednesday, September 10, at 5:30 p.m., at the Country Springs Hotel in Pewaukee, or contact us for a private consultation.

1 Better Business Bureau Wise Giving Alliance, September 2006.
2 Giving USA Foundation™ 2007.

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