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Deferred Gifts

A Bequest
A gift by Will is the simplest and most common form of deferred gift. You retain full control over your assets during your lifetime and your estate receives a donation receipt. Bequests can be cash, securities, real estate, or other property. Tax credits can help to offset taxes on related capital gains in your estate.

Gifts of Life Insurance
If the Community Foundation of Portage and District is the beneficiary but not the owner of a life insurance policy, you can provide a future gift while retaining full control of the policy. You can structure the terms of your Will so that the proceeds of the policy will result in a tax credit for your estate. The proceeds are not subject to probate as the charity is the beneficiary.

Gift of Residual Interest
This type of gift can include real estate or works of art, and involves an irrevocable future gift. You can retain the use of the property for life, receive a donation receipt for the present value of the gift, and it is not subject to probate. It is also possible to offset tax on capital gains.

Charitable Remainder Trust
When you set up a charitable remainder trust you are giving the trees but keeping the apples. You make an irrevocable gift of principal, from which you receive the net income for life. You receive a donation receipt for the present value of your gift and avoid probate on this portion of your estate. Tax credits help to offset tax on any associated capital gain.

This information is general and should not be relied upon as a substitute for professional advice. Please contact your tax advisor.

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