Donor owns a large policy or several policies, not all of which is needed to fund estate requirements. Make a gift of the policy and allow Charleston Collegaite School to choose cash value or death benefit, or designate CCS as the beneficiary.
Donor owns substantial assets, and would like to pass them to the next generation at low tax cost. A charitable lead trust pays income to CCS for a period of years, then the remainder to family members. By paying to a charity, a much lower imputed value is passed to the family members, avoiding tax on the marginal difference in value. Not for the faint of heart, since the assets pass from control of both the donor and the other family members for the period of payment to the charities.
Donor owns appreciated assets. The assets are low growth, low dividend, or both. Donor does not wish to pay capital gains tax, but would like to create more current income from assets. A gift to a CRT or CGA avoids capital gains taxes and estate taxes, provides income to designated beneficiaries, and the remainder to Charleston Collegiate School.
Real estate can be a difficult item to resolve within an estate, or by family members after it leaves the estate. A gift to CCS avoids estate, gift and capital gains taxes, and provides an income tax deduction. If some cash is needed, then a bargain sale can be used to provide cash in part, and a gift in part.
Many donors accrue substantial assets in collections of artwork, antiques, or other personal property. Gifts of personal property can provide tax deductions while not substantially reducing the value of an estate.
A great item to own during one's life, but not ideal to try and pass to family members. The IRA Charitable Rollover provision allows living individuals who have reached age 70½ to donate up to $100,000 to CCS directly from their Individual Retirement Account (IRA), without treating the distribution as taxable income. However, an entire IRA can be transferred to CCS after a donor’s passing thereby avoiding significant tax loss for the family.