Bequest through your Will or Living Trust

By adding a bequest provision in your will or living trust, you can provide now for a future gift to the Valley Animal Center. There are several ways to create such a provision:

• Leave a specific dollar amount
• Designate a percentage of your estate be given
• Give only the remainder, or residue, of your estate - that which remains after bequests to loved ones have been made
• Provide for a gift of specific property - real estate, stocks or other items

Giving in this manner offers a number of benefits:

• Your assets remain in your control during your lifetime
• You can modify your bequest if your circumstances change
• You can designate that a bequest be used for the general purposes of the Valley Animal Center or go to support a specific program

Charitable Remainder Trusts

A Charitable Remainder Trust (CRT) is a life-income arrangement that provides you and/or beneficiaries income for life or a period of years. After the trust terminates, the principal, or "remainder interest," goes to the Valley Animal Center.

There are three basic types of CRTs:

Unitrust (CRUT)

This type of trust pays a variable income based on a fixed percentage (usually between 5% - 6%) of the trust assets, revalued once each year. One advantage of a unitrust is that your income can increase as the trust principal grows over time. This type of CRT allows you to make additional contributions at any time.

Annuity Trust (CRAT)

This type of trust pays a fixed annual income, determined when the trust is established. The annuity trust is often preferred by those who are interested in the security of a constant return.

Charitable Lead Trust

This type of trusts makes fixed annual payments to the Valley Animal Center for a specified term of years. When the trust ends, the remaining principal goes to your heirs. The annuity payments and the term of the trust can be specified in such a way so as to reduce or even eliminate the transfer taxes due when the principal reverts to your heirs. All appreciation that takes place in the trust goes tax-free to your heirs.

The benefits of creating a charitable remainder trust:

• You receive a charitable income tax deduction in the year you make your gift, with an additional five years to carry over any unused deduction
• Any assets you contribute to a CRT are removed from your estate, reducing your estate tax exposure

Retained Life Estates

Your home, farm or vacation home can be transfered to the Valley Animal Center subject to a "life estate." You can continue to live on the property for the duration of the life estate, either for life or a set number of years, while continuing to be responsible for all taxes and upkeep. Once the life estate ends, the property is given to the Valley Animal Center.

Why establish a retained life estate?

• You will receive gift credit and an immediate income tax deduction for a portion of the appraised value of your property
• You can terminate your life estate at any time and take an additional income tax deduction

Gifts of Retirement Assets

Naming the Valley Animal Center as a beneficiary of your 401(k), IRA or other qualified plan is a great way to give. Any residual funds left in your plan when you pass away goes to the shelter tax-free!

There are several reasons to make this kind of gift:

• You forego both income and estate tax levied on the residual left in your retirement account by leaving it to the Valley Animal Center
• You can continue to make withdrawals during your lifetime
• You can change your beneficiary if your circumstances change
• You can also choose to leave your retirement plan assets to the Valley Animal Center through your will or revocable trust

Gifts of Life Insurance

One can transfer ownership of a paid-up life insurance policy to the Valley Animal Center. The shelter can choose to either cash in the policy immediately or receive the death benefits later.

A gift of life insurance carries the following benefits:

• Life insurance gifts allow the donor to receive gift credits and an immediate income tax deduction for the cash surrender value of the policy

Appreciated Securities

The Valley Animal Center also accepts gifts of appreciated securities. After transferring securities to the shelter, we can in turn sell them and use the proceeds as you have designated.

Gifts of this kind offer several key benefits:

• You will receive gift credit and an immediate income tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them
• By making a gift of appreciated securities you will pay no capital gains tax on the securities you donate