Charity
Begins at Home
Nancy Spagnoli knows the value
of charitable planning firsthand. In March 1997, she established
a charitable remainder trust that names Angel Medical Center
as the remainder beneficiary. In making her gift to Angel
Medical Center, Nancy saw the opportunity for a
teachable moment. She expressed her wish to
use this opportunity “to educate the community on
the value of providing gifts to nonprofit organizations
through a charitable remainder trust.” Nancy has been
a long-time supporter and advocate for Angel Medical Center.
She acknowledges that Angel has a special place in her heart
because of the caring physicians, compassionate nurses,
and dedicated volunteers.
Nancy funded her trust with
highly appreciated stocks that would have ordinarily created
a capital gain if she sold them. However, since a charitable
remainder trust does not pay capital gains taxes, Nancy
was able to diversify her portfolio without incurring any
capital gain by first creating the trust and selling the
securities within the trust. She receives payments of 8%
a year, payable each month. Nancy also received a charitable
income tax deduction that she was able to use the year she
funded her trust and for five subsequent years.
In summary, by establishing
a charitable remainder trust Nancy was able to
o Increase her cash flow
o Receive a substantial income tax deduction
o Reduce the risk of her portfolio by
diversification without incurring capital gains taxes
|