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Split-Income Vehicles

Creative Vehicles That Benefit You – And Your Community

Charitable giving and income generation don’t have to be mutually exclusive. By using creative planned giving tools, you can accomplish the financial planning for retirement, and preserve your family’s wealth while creating your legacy. And some charitable vehicles can turn assets of all types into a mutually beneficial situation for you, your family and your philanthropy.
Here are three examples:

  • Charitable Gift Annuity
    A gift annuity is a contract between you and CICF that pays a fixed and guaranteed lifetime income for the duration of one or two lives in exchange for a gift of cash, stock, or other property. It offers a current income tax charitable deduction, as well as paying fixed and guaranteed income, some of which may be tax-free. A fund at CICF (yours or any other) receives the “remainder” in the gift annuity upon the annuitant’s death.

  • Charitable Remainder Trust
    This trust arrangement is ideal for donors who want to provide a lifetime income for themselves, their spouse, or children and make a charitable gift. The tax benefits for this type of trust are substantial, including a current income tax charitable deduction, free of capital gains tax, and ultimate avoidance of estate tax. Upon the death of the income beneficiaries of the trust, or a term of years, the remaining assets are donated to any fund at CICF or to your own donor-advised or scholarship fund that your heirs can then utilize for their charitable giving.

  • Charitable Lead Trust
    With a charitable lead trust, the assets transferred to the trust are eventually returned to the donor or, more typically, to the donor's children. Income is paid annually to any fund at CICF or to your own donor-advised or scholarship fund that you utilize for your charitable giving while the assets remain in the trust. Such trusts can be created during your lifetime or at death with the likelihood of significant savings in gift or estate taxes.

For more information on these types of planned and future gifts, please talk with your financial advisor or estate-planning attorney. We also encouraged you to talk with Jan Edmondson or Mary Stanley, our senior gift planning advisors at 317.634.2423.