Planned Giving

Perhaps the most profound way to keep your generous spirit alive is through planned giving. By including Royal Oak in your estate plans, you and your family will receive substantial tax benefits while providing vital resources for the Foundation’s mission and programs.

Bequests - Donate to Royal Oak through your will or living trust
Charitable Gift Annuity - Transfer assets to Royal Oak - often cash or stocks - and the Foundation agrees to make fixed annual payments to you for the rest of your life.
Charitable Remainder Trust - A flexible estate planning tool that enables you to make a gift in exchange for an agreement for you and/or loved ones to receive an income stream for life.
Charitable Lead Trust - Establish a trust that provides annual income to Royal Oak for a set period, after which the remaining trust assets are returned to you or your heirs.

Planned Giving - Bequests
A bequest is a gift by will or revocable living trust. This is an excellent choice if you want to support Royal Oak in the future, but wish to maintain liquidity and use of your assets during your lifetime. A bequest is flexible; you can adjust the terms of your gift after it is established. The full amount of your gift is deductible from your taxable estate.

The three most common bequests are specific, general, and residuary. In a specific bequest, you name a particular item such as a piece of real estate or a block of securities that you wish to give. In a general bequest, you name the dollar amount you want to give. In a residuary bequest, you give the Foundation a percentage of your estate after all specific and general bequests have been met. All bequests are fulfilled only after debts, taxes, and estate expenses have been paid.

A bequest can be unrestricted, enabling Royal Oak to direct your funds where future need is greatest, or restricted for a particular program or purpose.

Example of unrestricted bequest language:
I give (insert dollar amount, property to be given, percentage of the estate, or "the remainder of my estate") to The Royal Oak Foundation, a not-for-profit corporation, tax identification number 23-7349380, headquartered at 35 West 35th Street, Suite 1200, New York, New York, 10001 for its general use and purposes.

Example of restricted bequest language:
I give (insert dollar amount, property to be given, percentage of the estate, or "the remainder of my estate") to The Royal Oak Foundation, a not-for-profit corporation, tax identification number 23-7349380, headquartered at 35 West 35th Street, Suite 1200, New York, New York, 10001, to support (insert designation or purpose).

For more information, please contact the Executive Director, Sean Sawyer, ssawyer@royal-oak.org or (212) 480-2889, ext. 202

Planned Giving: Charitable Gift Annuity
A charitable gift annuity is a contract between you and Royal Oak. You irrevocably transfer an asset to the Foundation - often cash or stocks - and the Foundation agrees to make fixed annual payments to you for the rest of your life. The advantages to you are many. You can take an immediate charitable contribution deduction for a portion of the gift's value, and part of each annual payment may be tax-free. You may also be able to lower your estate taxes. If your asset is property that has appreciated, you may be able to avoid capital gains taxes. Annual payments from the annuity are a set percentage of the value of your asset, and the guaranteed rate you are paid is determined by your age when the gift is made. The older you are when you make the gift, the higher your percentage and your payment. If you choose payments to benefit two people, the rate is lowered, reflecting the payout for a longer span of time. The remaining value of your asset at your death or the death of your loved one is the resulting gift to Royal Oak. As an option often used in retirement planning, you might choose to make your gift now and receive an immediate income tax deduction, then defer your payments until you determine you will want supplemental income. By deferring payments, you will qualify for a higher annual payout. For more information, please contact the Executive Director, Sean Sawyer, ssawyer@royal-oak.org or (212) 480-2889, ext. 202

Planned Giving: Charitable Remainder Trust
A charitable remainder trust is an estate planning tool that enables you to make a gift in exchange for an agreement for you and/or loved ones to receive an income stream for life or a term of years. The income you receive is dependent on the terms of the trust.

Through this plan, you establish an irrevocable trust with cash, securities, or other property, then determine the terms of the trust: who the beneficiaries are, the percentage of the trust's value that will be paid out annually, how long the payments will be made, and which charity or charities receive the remainder.

A trustee (you, your financial professional, or someone else you choose) manages the assets; the income beneficiaries can be you or others close to you. The percentage paid to you must be at least 5 percent of the trust's value. Your income is either a fixed dollar amount or a set percentage of the value of the trust, depending on which plan you choose. You can also decide if you want the payout to be a set period of years or for designated persons' lifetimes. When all of the payments have been met, or upon the death of the last beneficiary, the trust is dissolved and the remainder of the assets are paid to the charity or charities you have designated.

There is a wide assortment of charitable remainder trust plans available to you. For each of these plans, you can take a tax deduction for a portion of the trust's value in the year you establish the trust, and you may reduce or eliminate capital gains and estate taxes. Additionally, annual payments to you may be taxed at lower capital gains tax rates.

The trust plans are:

Annuity trust: Pays a fixed income based on the value of the assets at the time the trust is created. No additions can be made to this trust and the annual payment does not change whether the trust assets increase or decrease in value.
Standard unitrust: Reflects the performance of the trust's assets, providing a fluctuating income based on the trust's annual assessed value. You can add assets to this trust after it is established.
Flip unitrust: Begins by distributing the trust's annual net income - which may mean no payment at all if the asset is non-performing - then flips to a standard unitrust on a specified date or event or upon the sale of an asset. This is an excellent option for donations of real estate.
Net income unitrust: Pays either the net income produced from the trust's assets or the designated percentage of the annually valued trust assets, whichever is less.
Net income with charitable remainder trust (NIMCRUT): A net income with charitable remainder trust is similar to a net income unitrust in that the lesser of a set percentage or the actual income earned is paid to the donor, with the added provision that it makes up any deficit below that percentage with surplus income in subsequent years

For more information, please contact the Executive Director, Sean Sawyer, ssawyer@royal-oak.org or (212) 480-2889, ext. 202

Planned Giving: Charitable Lead Trust
Through this giving plan, you establish a trust that provides annual income to Royal Oak for a set period, after which the remaining trust assets are returned to you or your heirs. This plan can substantially lower your gift and estate taxes.

Charitable Lead Trust Plans
A charitable lead trust is the reverse of a charitable remainder trust. Rather than benefiting at the end of a trust's term, as with a charitable remainder trust, the Foundation benefits at the beginning of a trust's term.

To establish a charitable lead trust, you transfer assets such as cash, securities, real estate, or other property into an irrevocable trust. The trust provides annual income to the Foundation for a set term, then returns the assets to you or your heirs. The benefits - which include income tax deductions and reduced or eliminated gift and estate taxes - vary, based on the terms you establish for your trust and whether the trust is enacted during your lifetime or as part of your will.

You decide who will receive the remaining trust assets:

Grantor lead trust: Returns assets to you or your spouse at the end of the term. With this option, you can take an income tax deduction for the value of the income donated to the Foundation during the trust's term. The deduction is limited to 30 percent of your adjusted gross income, and the excess can be carried forward for a period up to five years. With this plan, you are taxed on all income the trust assets generate, including income donated to the Foundation.
Non-grantor lead trust: Passes assets to the heirs you designate when the trust dissolves. With this option, you avoid all taxes on income paid to the Foundation, and the remaining assets - including any increased value - are distributed to your heirs free of gift and estate taxes.

For more information, please contact the Executive Director, Sean Sawyer, ssawyer@royal-oak.org or (212) 480-2889, ext. 202