Donor Story Booklet Calculator

Give It Twice Trust

While visiting her favorite nonprofit's website, June learned about a give it twice trust and contacted the organization for more information. A gift planner explained that this type of trust would allow her to provide income to her children first, with the remaining trust assets later transferred to charity.

June: "Before my husband Fred passed away, we talked about our estate plans. We agreed that we wanted to treat each of our three children equally and that we wanted to give to our favorite nonprofit organization."

The gift planner explained to June that she had the ability to use her $800,000 estate to make a meaningful difference for both her family and her favorite nonprofit. June was concerned because while her two oldest children are financially responsible, her youngest, Jim, "spends money like water." She was worried that if Jim were to receive a lump sum cash inheritance, he would spend it right away.

The gift planner described how a give it twice trust could help address these concerns. At her death, June could transfer $400,000 from her IRA to the trust. Each of her three children would then receive one-third of the trusts income over a 20-year period. The annual payments would provide Jim with steady support while preventing him from spending his inheritance all at once and giving him time to learn how to save and invest. At the end of the 20 years, the remaining trust assets would be transferred to the nonprofit. By funding the trust with her IRA, June could also reduce income taxes, since the trust is tax-exempt.

June: I established a give it twice trust and was thrilled with the plan. The opportunity to help my children while also supporting my favorite nonprofit made me happy, and I knew it was the right decision.

What is a give it twice trust?

A give it twice trust is a planning option that allows you to transfer your IRA or other assets at death to fund a term-of-years charitable remainder unitrust.

Give it twice video

Is a give it twice trust right for you?

A give it twice trust can be a valuable part of an estate plan. We would welcome the opportunity to talk with you about how this strategy may benefit your family and support the causes you care about. Please contact us to discuss this important estate planning and charitable giving option.

Please note: The information above is representative of a typical donor and may or may not be an actual donor to Luther College. Because individual circumstances vary, you may wish to create a printable illustration of your potential income and tax benefits using the calculator on this page.

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The charitable remainder unitrust calculator generates a printable presentation that shows how you can enjoy increased income with a tax-free sale plus benefit from charitable tax deduction.

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Number of Beneficiaries

One Two

Click the appropriate button for a presentation of one or two beneficiaries. Selecting one beneficiary will cause the second beneficiary and the associated name and birthdate fields to be hidden from view.

First Beneficiary

Enter the name of the person. You may use such titles as "Mr.", "Mrs.", "Dr.", "Rev.", "Jr.", "Sr.", etc. For the remainder unitrust the first person is the first income recipient or beneficiary of the agreement.

First beneficiary is required

Birthdate

Month:

Day:

Year:

Please enter a valid birthdate for the first beneficiary

Birth month of the first beneficiary is required

Birth day of the first beneficiary is required

Birth year of the first beneficiary is required

Second Beneficiary

Second beneficiary is required

Birthdate

Month:

Day:

Year:

Please enter a valid birthdate for the second beneficiary

Birth month of the second beneficiary is required

Birth day of the second beneficiary is required

Birth year of the second beneficiary is required

Income Tax Rate

Select the current federal income tax rate of the donor. This will be used to project possible income tax savings. If you are uncertain about the correct rate, you may choose one of the middle rates. For many people, this will be close to their actual income tax rate.

Property Value $

Please enter a valid property value

Property value is required

Enter the amount of cash or the fair market value (FMV) of the asset(s) used to fund the CGA. For assets such as real estate, closely-held stock and other hard to value assets, the FMV is the appraised value of the property on the date of the gift.

Cost Basis $

Please enter a valid cost basis

Cost basis is required

Enter the cost basis of the asset being used to fund the trust or annuity. If the asset is cash, the cost basis is equal to the gift amount. If it is appreciated property, the cost basis will most likely be the amount you originally paid for the property. The cost basis is used to determine the capital gains tax which will be bypassed as a result of selling the asset. If the cost basis is not known or cannot be proven, the IRS assumes the cost basis to be $0. If cash funds the gift annuity, enter the same value as "Value of Property."

Current Return

Current return percentage is required

Enter the current return or yield of the asset(s) which will be used to fund the gift agreement. For example, if the trust will be funded with public-traded stock which is currently paying a dividend of 3%, the current return yield is, in turn, 3%. If the gift is funded with vacant land or a personal residence (assuming the property is not leased), the current return would be 0%.

Trust Payout

Payout must be between 5% and 50%

Payout percentage is required

Enter the percent income payout to the donor. You must select a trust percent payout of 5% or more.

Payment Frequency

Select either monthly, quarterly, semiannual, or annual income payments to the beneficiary(ies) of the income. The choice of payment frequency does affect the amount of the charitable deduction as the more frequent the payment (i.e. monthly as opposed to annually), the smaller the donor's tax deduction.

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Give It Twice Trust

What is a give it twice trust?

Give it twice video

Is a give it twice trust right for you?