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Ways to Make Planned Gifts

> Beneficiary Designation

Assets such as retirement plan assets and life insurance proceeds can be transferred directly to KulshanCLT without going through probate, after your lifetime.

> Charitable Bargain Sale

A partial sale/partial gift transaction provides you with a charitable deduction plus cash to use elsewhere while providing a home affordably priced to a prospective KulshanCLT homebuyer.

> Charitable Bequest

Provide for a future gift to KulshanCLT during your lifetime without affecting your annual cashflow.

> Charitable Lead Trust

Pass appreciating assets on to those you care for while making gifts to KulshanCLT in the interim.

> Charitable Remainder Trust

Make a significant gift and receive payments each year throughout your lifetime.

> Gifts from Retirement Plans

Minimize income and estate tax levied on the residue left in your retirement plan by leaving some or all of it to KulshanCLT.

> Gifts of Life Insurance

Make a significant gift from income instead of capital, with premium payments fully deductible

> Retained Life Estate

Receive a deduction by donating a home or residence while retaining the right to live there for life.

The information on this website does not constitute legal, financial, tax or estate planning advice and should not be relied upon as a substitute for such advice. KulshanCLT encourages you to seek the counsel of your own professional advisors and values their involvement as your determine how you would like to proceed.

Beneficiary Designation

A beneficiary designation is a simple and flexible way to leave a legacy of affordability to KulshanCLT for current and future generations of Whatcom County homeowners without having your gift go through probate.

Typically, beneficiary designations can be made for:

Retirement plans, such as IRAs, 401(k)s, 403(b)s
life insurance policies and annuity contracts
bank and brokerage accounts, and other types of deposit and investment arrangements, where allowed by law and offered by the entity that maintains the arrangements

When you decide to designate KulshanCLT as a beneficiary simply provide the address and tax identification number show below on your beneficiary designation form:

Kulshan Community Land Trust

215 West Holly St, Ste H-20

Bellingham, WA 98225

Tax ID# 91-1995485

Estate Planning Tips: You may designate KulshanCLT as beneficiary of all or just a percentage of your policy, plan, account, or other arrangement. Separate pages of our web site provide additional information on life insurance and gifts from retirement plans Similarly, to learn more about making a bequest to KulshanCLT, please see the charitable bequests page.

Tax Note: A gift to KulshanCLT made upon death by means of a beneficiary designation not only automatically bypasses the probate process,but can also avoid potential taxes. The tax savings can be especially significant in the case of certain annuity contracts, U.S. savings bonds, and particularly retirement plans, If you were to leave these assets to individuals, rather than to a tax-exempt organization such as KulshanCLT, those individuals would have to pay tax on any previously untaxed income related to the assets.

Questions? We’re here to help. Email us or call 360-671-5600.

Charitable Bargain Sale

How it works

1) Sell your home or other property to KulshanCLT for a price below the appraised market value, resulting in a transaction that is part charitable gift and part sale.

2) KulshanCLT sells the property, passing the cost savings on to the income-qualified homebuyer to create more affordable priced homes in our portfolio.

3) Future homebuyers benefit from the cost savings of the original sale, made possible by you and preserved by subsequent homebuyers.

Advantages

Receive an immediate income tax deduction for the difference between the price paid and the appraised market value of the portion of the property you donated.
Pay no capital gains tax on the donated portion of the property.
Employing the option of an installment bargain sale, you can spread payments over a period of years and still receive an immediate income tax deduction.
Enjoy the satisfaction of making a significant gift to realize the dream of homeownership for more low-income families in Whatcom County during your lifetime.

For more information Email us, or complete the personal illustration form. We would be honored to assist you through steps of the process.

Charitable Bequest

How it works

1) Make a future gift to KulshanCLT by including a bequest provision in your will or revocable trust.

2) KulshanCLT receives the gift upon your demise and applies it to the purpose(s) specified by you.

Advantages

Simple and inexpensive to set up.
Allows you to retain current assets and income while eventually making a significant contribution.
Can be changed or amended any time during your lifetime, so long as certain requirements are met.
Qualifies for an estate tax deduction.
Designate KulshanCLT to receive a specific dollar amount, a particular asset, or either all or a percentage of the residue of your estate after other designations are fulfilled and expenses are paid.

There are many different types of charitable bequests. Click here for sample bequest language used in common estate planning instruments.

For more information Email us, or complete the personal illustration form. We would be honored to assist you through steps of the process.

Sample Bequest Language

Illustrated with common estate planning instruments used to make bequests

Most people who make bequests do so through their wills. If you already have a will, you can add a bequest to KulshanCLT by means of a simple document called a codicil. In some cases, donors who have revocable living trusts choose to make a future gift to KulshanCLT through the equivalent of a bequest, namely a charitable distribution provision in the trust agreement. Usually, an existing trust agreement can easily be amended to include such a provision.

Forms of Bequests

Specific sum of money:

“I give to Kulshan Community Land Trust, currently located at 215 West Holly Street, Suite H20, Bellingham, Washington 98225, or its successor organization, the sum of [insert here the exact dollar amount].”

Specific property such as real estate, stocks, bonds, works of art, or other items:

“I give to Kulshan Community Land Trust, currently located at 215 West Holly Street, Suite H20, Bellingham, Washington 98225, or its successor organization, [insert here a description of the particular property].”

Rest and residue of your estate after paying debts, taxes, expenses, and other bequests:

“I give to Kulshan Community Land Trust, currently located at 215 West Holly Street, Suite H20, Bellingham, Washington 98225, or its successor organization, all [or a stated percentage] of the rest, residue, and remainder of my estate.”

Contingent bequest if you are not survived by certain individuals:

“If [name/s of primary beneficiary/ies] do/es not survive me, or shall die within ninety (90) days from the date of my death, or as a result of a common disaster, then I give to Kulshan Community Land Trust, currently located at 215 West Holly Street, Suite H20, Bellingham, Washington 98225, or its successor organization [insert here the exact dollar amount, description of property, or percentage of residual estate].”

(Note: Many other types of contingencies can be addressed.)

Bequests for Restricted Purposes

If the bequest is for a restricted purpose, use the relevant language above and designate the particular program or area of activity to be supported.

Example: “I give to Kulshan Community Land Trust, currently located at 215 West Holly Street, Suite H20, Bellingham, Washington 98225, or its successor organization, the sum of [insert here the exact dollar amount, description of property, or percentage of residual estate], to be used for [state purpose].”

Power to Vary Provision

It is recommended that the following paragraph be added if the bequest is for a restricted purpose.

“If, in the opinion of the Board of Trustees of Kulshan Community Land Trust, it should become impossible, inadvisable, or impractical to use this gift the specified purpose(s), then the Board may in its discretion use the gift for other purposes, keeping in mind the original wishes of the donor. In any such alternative application, the support provided by this bequest shall be clearly identified with the name of [donor’s name].”

Bequests are vital to the future of KulshanCLT. When our organization is named in a will or other estate planning instrument, we always appreciate receiving a copy of the relevant portion of the document. Copies may be sent to:

Kulshan Community Land Trust

215 West Holly Street, Suite H20

Bellingham, Washington 98225

For further information or if you have questions about the proper designation of a bequest, please contact Jill Clark by phone at (360) 671-5600, ext 5 or by email at jillclark@kclt.org.

Charitable Lead Trusts

How it works

1) Contribute securities or other appreciating assets to a charitable lead trust.

2) The trust makes annual payments to KulshanCLT for a period of time.

3) When the trust terminates, the remaining principal is paid to your heirs.

Advantages

The present value of the income payments to KulshanCLT reduces or eliminates your gift/estate tax.
No additional gift/estate tax will be owed on future appreciation in the value of assets held by the trust.
Enjoy the satisfaction of making a significant ongoing gift to KulshanCLT.

This is one of many possible illustrations of a charitable lead trust. For more information Email us, or complete the personal illustration form. We would be honored to assist you through steps of the process.

Charitable Remainder Trusts

How it works

1) Transfer cash, securities or other appreciated property into a trust.

2) The trust makes annual payments to you or to beneficiaries named by you.

3) Upon termination of the trust, the remainder passes to KulshanCLT.

Advantages

Receive an immediate income tax deduction based on a portion of your contribution to the trust.
Pay no upfront capital gains tax on any appreciated assets you donate.
You or your designated income beneficiaries receive income for life or a term of years.
Enjoy the satisfaction of making a significant gift that benefits you now and KulshanCLT later.

There are many different types of a charitable remainder trusts. For more information Email us, or complete the personal illustration form. We would be honored to assist you through steps of the process.

Gifts from Retirement Plans

How it works

1) Name KulshanCLT as the beneficiary of a percentage (or all) of your IRA, 401(k), 403(b), or other qualified plan.

2) Assets remaining in the plan pass to KulshanCLT tax-free after your lifetime.

Advantages

Eliminate both income and estate tax levied on whatever plan assets you leave to KulshanCLT. You are essentially giving the most-taxed asset in your estate to KulshanCLT, thereby allowing more favorably taxed property to be left to your heirs.
Continue to take withdrawals during your lifetime.
Change the beneficiary if your circumstances change.

This is one of many possible illustrations of a gift of retirement assets that can be made during or after your lifetime. In particular, there are special incentives for individuals over 70-1/2 to make gifts from their IRAs beginning in 2008. Gifts can also be structured to provide life payments to one or more additional beneficiaries of your estate. For more information Email us, or complete the personal illustration form. We would be honored to assist you through steps of the process.

Gifts of Life Insurance

How it works

1) Provide now for a future gift to KulshanCLT by naming us as owner and beneficiary of a life insurance policy.

2) Make tax deductible annual gifts to KulshanCLT in the amount of any premiums still owed on the policy.

3) When the policy matures the proceeds are paid to KulshanCLT they are applied to the program designated by you.

Advantages

Make a significant gift from income instead of capital.
Receive a deduction for the lesser of the policy’s value or its cost basis.
Any subsequent gifts you make to offset our premium payments are fully deductible. The same holds true even if you pay the premiums directly to the life insurance company.
Help build KulshanCLT’s future financial strength.

This is one of many possible illustrations of how a life insurance policy can be used to make a gift either during life or upon death. For more information Email us, or complete the personal illustration form. We would be honored to assist you through steps of the process.

Retained Life Estate

How it works

1) Transfer your home, farm, or vacation home to KulshanCLT subject to a life estate.

2) Continue to live in the property for life or a specified term of years, while continuing to be responsible for all taxes and upkeep.

3) The property passes to KulshanCLT when your life estate ends.

4) KulshanCLT sells the home to an income-qualified homebuyer who earns equity over time while keeping the home affordable for future homebuyers.

Advantages

Receive gift credit and an immediate income tax deduction for a portion of the appraised value of your property.
You can either make a life estate at any time and take an additional income tax deduction, or else receive cash for renting or selling the life estate.
Enjoy the satisfaction of making a significant gift now that benefits KulshanCLT and its homebuyers later.

For more information Email us, or complete the personal illustration form. We would be honored to assist you through steps of the process.