Have you considered expanding
your generosity through a unique kind of charitable gift that is structured to
actually “give back”? Examples include a charitable gift annuity, a charitable
remainder trust, a charitable annuity trust, a pooled income fund or a life
estate. As important as it is to understand these kinds of charitable gifts,
there is good reason to know how and why they can be undone – and all for the
sake of timing.
The subject of undoing
structured gifts was illustrated by the Fred
Hutchinson Cancer Research Center, itself no small target for charitable
gifts of all kinds, in an article titled “Current Planned Gifts I - Gift Annuities and Unitrusts.”
The original article is a fairly
handy guide, especially if you are already familiar with these powerful
planning tools. However, the guide also gets a bit technical, too.
The main takeaway is that a
structured gift is not necessarily a structure set in stone. In fact, there are
ways to speed up a gift of the “remainder” interest in a structured gift. In a
certain tongue-in-cheek way the article explains from the point of view of the
… presidents and CEOs
of charities generally prefer current gifts as opposed to planned gifts. All
presidents and CEOs have many goals and projects that require current funding.
Therefore, the gift planner will be very favorably received if he or she
understands the different methods for converting a planned gift into a current
Then again, there are just as
many reasons to speed up a structured gift when you are the giver.
For instance, if you are
receiving a current income stream that you no longer need later in life, then
you can accelerate the gift of the remainder interest generating that income
and accelerate the charitable deduction to the current year. This deduction may
be helpful if you are taking Required Minimum Distributions from your IRA.
Timing is everything, and
knowing what can be undone gives you that much more flexibility.
Hutchinson Cancer Research Center (August 6, 2013) “Current Planned Gifts I - Gift Annuities and Unitrusts”