Avenues to Independence
Trusts and Other Planned Gifts

Individuals and Families can leave a long-lasting legacy of support through estate and planned giving in support of the programs and services of Avenues.  Assistance for this process is available at any time.  Special recognition through the Avenues Heritage Society is provided to all individuals who inform Avenues of their future gift plans to Avenues.

The following are descriptions of various ways to provide for planned giving:

Revocable Living Trusts
A Revocable Living Trust can be used to provide for future gifts to Avenues. Plans can be made that provide a contribution according to instructions that you have established in the trust and will be completely exempt from federal estate tax liabilities. Revisions can be made during the lifetime of the donor to take into consideration family and other life changes.

Trust payments of this type can be used to leave a gift for Avenues but also create a lifetime income that can be paid to a beneficiary with reduced tax implications. During the person's lifetime, contributions from a trust to Avenues are currently deductible as a charitable contribution.

Assets held in a revocable living trust are not subject to the delays, expenses and restrictions of probate that could occur upon the death of the original asset owner(s). In the event of incapacitation, the trust can continue to handle property in a manner designated by those who had originally established the trust.


Trusts created through Wills
Trusts can be created as part of the execution of a will. Certain property can be transferred to a trustee and managed for the benefit of Avenues or other beneficiaries. Regular gifts can still be provided in conjunction with the wishes of the donor, while not conveying the asset to the beneficiary itself.


Irrevocable Charitable Remainder Trusts
The Charitable Remainder Trust is the irrevocable placement of assets in a trust, with instructions to pay oneself or a beneficiary, income for life. Upon the death of the original beneficiary, the remainder of the trust passes on to Avenues to Independence.

The benefits of a charitable remainder trust can provide for: increased annual income; capital gains tax reductions; annual tax free income; income deferrals; diversion of income to lower taxed family members; estate tax savings; gift tax avoidance; and other benefits to future liabilities for one's estate.

The charitable remainder trust is especially valuable for the contribution of appreciated assets when one is in need of an annuity type payment as part of a contribution. These trusts are not subject to capital gains taxes; thus all proceeds can be utilized in the determination of payments. As the name implies, these arrangements are irrevocable, thus allowing for better tax considerations to the donor along with the major gift consideration to Avenues. Additional information on Charitable Remainder Trusts is also available.


Bequests
The most familiar type of planned gift is the general bequest, which specifies that Avenues will receive a specific dollar amount from a donor's estate. An alternative could be the percentage bequest, which assures that the true value of the bequest is provided for the benefit of Avenues.  


Life Insurance
Avenues can be named as the beneficiary of a life insurance policy by simply contacting the carrier and authorizing the change. Transfer of ownership to Avenues on new or existing policies will provide for significant tax benefits for the current year and each year that premiums are paid by the donor.


Real Estate
Our need to acquire additional housing, whether through single family homes, condominiums or apartment buildings, will be our single greatest priority during the next 20 years. A gift of this type would provide a tremendous long-term benefit for our programs.

A contribution of real estate would provide an immediate market value tax deduction, even if the donor continued to reside in the house for as long as he/she wished. Only after death would Avenues assume occupancy rights in the property.

As an immediate contribution, long-term, or even a percentage value of the property, Avenues would be able to benefit from the value that has been created through a donor's real estate assets.


Gifts of Appreciated Assets
Marketable securities and other assets that have grown substantially in value, can be contributed to Avenues at its full market value, at a cost to the donor of its original acquisition price. This provides for a major tax deduction to the donor and an avoidance of the capital gains that is generally associated with greatly appreciated assets. Assets must be owned for more than one year, and the deduction cannot exceed 30% of adjusted gross income. The excess can be carried over for up to five subsequent years.


Cash Gifts
Annual gifts of cash are the most common form of contributions to Avenues. Every dollar received is extremely important in our work for persons with disabilities and it is recognized that gifts to Avenues are provided to help us meet their needs. Tax and estate planning issues, while significant, are not the primary reasons to support Avenues. If you feel that what takes place at Avenues is an important and worthwhile cause, then any method that you use to support us is the right one to use.