Waseca Area Foundation

The best ways to benefit family, friends and charitable organizations

The wealthier you become, the more beneficiaries you attract - including the Internal revenue Service. You have many options for distributing your assets during your lifetime and at death. Discussed here are some of the more effective ways to direct assets to the people and charities you care about most. While there is no single, best method, there is one universal piece of advice: Consult a professional. A qualified tax planner or attorney can ensure that your money and property are distributed as you have intended.

Outright Gift: you can give up to $10,000 per year ($20,000) if you are married) to as many individuals as you want without incurring any gift taxes.

Living Trust: A trust you establish to take effect during your lifetime for the benefit of yourself and/or another individual or organization.

Bequest in Will: A gift you make by naming individuals or organizations in your will.

Tuition and medical payments: You can pay tuition (preschool through college) or medical expenses in an unlimited amount for anyone without incurring gift tax liability. The money must be paid directly to the providing institution.

Life insurance: You can name an individual or a charitable organization as the beneficiary and/or owner of a life insurance policy.

Credit Shelter/QTIP Trust: These types of trusts are specifically designed to shelter assets for the benefit of your spouse. Please consult your professional advisors for more information.

Planned Gifts: a variety of methods exist that allow your to benefit charitable organization and realize valuable tax and financial advantages, such as increased income from investments, income tax charitable deductions and avoidance of capital gains and estate taxes. We would be happy to offer you more information on how one of these techniques might work for you.

Matching Methods To Beneficiaries