Planned Giving
The mission of the Planned Giving Committee of the Foundation, is to present donors with financial options that benefit both the donors and Grosse Ile Educational Foundation. Our staff is available to assist you in achieving your tax, estate planning and charitable giving objectives. We are pleased to provide personal financial projections to you and your financial advisors

ABOUT LIFE INCOME GIFTS

A donor may make a gift to Grosse Ile Educational Foundation and receive direct financial benefits. The benefits include an income for life for the donor and/or the donor's spouse and a charitable income tax deduction, in addition to the good feeling that comes from making a gift.

Life Income Gift Benefits

• A stream of income for the lifetime of the donor and/or the donor's spouse
• A charitable income tax deduction
• An opportunity to establish an endowed fund in the donor's name or the name of a loved one
• Possible avoidance of capital gains taxes on gifts of appreciated property
• A higher yield than from current investments
• Membership in the GIEF Founders Club
• A reduction in federal estate taxes

Charitable Remainder Trusts
A charitable remainder trust provides a donor with a lifetime income and a charitable income tax deduction. The donor selects the payout rate, usually between 5% and 7%. The higher the payout rate, the lower the charitable income tax deduction. This gives the donor, and perhaps the donor's spouse, an income every year for life. If the donor funds the trust with appreciated securities, the donor will avoid capital gains taxes. The donor may choose the trustee to manage the trust. The trustee may invest in almost any investment, including tax free bonds. A donor may designate the trust for the benefit of a particular department or program at Grosse Ile Educational Foundation and establish a fund in his or her name at death.

Donors may choose from two types of charitable remainder trusts: the annuity trust and the unitrust. The annuity trust pays a fixed, guaranteed dollar amount regardless of the trust's investment performance. The income rate is determined at the time the trust is funded. The annuity trust is best for donors who seek a regular, fixed income and prefer to have the satisfaction of knowing the amount of the payment in advance.

Alternatively, the charitable remainder unitrust pays the donor a predetermined percentage of the fair market value of the trust's assets as revalued annually. If the trust's assets increase, the donor receives a larger payment, providing a hedge against inflation. Additional contributions may be made to a unitrust.

Summary of Benefits:

• Avoid capital gains taxes on the transfer of appreciated property.
• Increase dividends ranging from 2% to 4% to dividends as much as 6% or more.
• Obtain a charitable income tax deduction.
• Provide income to one or two beneficiaries for life.
• Establish an endowed fund at Grosse Ile Educational Foundation through the trust.

The donor is responsible for maintenance costs, insurance, and real estate taxes. To substantiate the value of the property, the donor must obtain an appraisal from an independent qualified appraiser; the cost of the appraisal is borne by the donor and is a miscellaneous deduction.

LEAD TRUSTS

Charitable Lead Trusts
A lead trust is the opposite of a charitable remainder trust. The "lead" income is paid first to Grosse Ile Educational Foundation, and after a number of years (based on a term or a lifetime) the remainder is returned either to the grantor (a grantor lead trust) or to someone other than the grantor, such as the grantor's beneficiaries (a non-grantor lead trust). In addition, a charitable lead trust is a fully taxable trust, meaning that the trust pays income tax on its income and capital gains, unlike the charitable remainder trust which is a tax-exempt trust.

Grantor Lead Trusts
A grantor lead trust provides income to Grosse Ile Educational Foundation for a term of years. The term may not exceed 20 years. The trust must be either a unitrust or an annuity trust form of grantor lead trust. Unlike a charitable remainder trust, the payout does not need to equal or exceed 5% of the trust assets. There are no estate or gift tax consequences for a grantor lead trust, but there is a charitable income tax deduction available to the grantor. The grantor is able to accelerate, in the first year, the value of the income payments to Grosse Ile Educational Foundation in the form of a charitable income tax deduction, subject to the limitations on deductibility. The grantor is, however, taxed on the income paid to Grosse Ile Educational Foundation, so the charitable income tax deduction is diminished. If, however, the trust is funded with tax-free bonds, the donor obtains a charitable income tax deduction and, because of the tax-free returns, is not taxed on the income.

Non-Grantor Lead Trusts
A non-grantor lead trust provides income to Grosse Ile Educational Foundation for a period of years or a lifetime, and at the end of the term the remainder is transferred to someone other than the grantor. The grantor does not receive a charitable income tax deduction but instead receives estate and gift tax benefits. If the non-grantor trust is an inter vivos trust (established during life) the donor obtains a gift tax charitable deduction. On the other hand, if the non-grantor trust is a testamentary trust (established upon the death of the donor), the estate obtains an estate tax charitable deduction. Grantors are able to use the non-grantor lead trust to help transfer assets to their issue at reduced federal estate or gift tax rates. When combined with generation-skipping provisions, grantors may pass a considerable amount of property to their grandchildren while substantially reducing taxes and benefiting Grosse Ile Educational Foundation.

GIFTS THROUGH YOUR ESTATE

A gift through your estate can provide significant support to Grosse Ile Educational Foundation. The gift can be made through a will or a trust, and both documents enable you to distribute assets to individuals and nonprofit organizations in the amounts or proportions you indicate.

A gift through your estate provides the following benefits:

• The opportunity to make a major gift while preserving assets during life.
• Reduction in federal estate taxes.

Specific Bequest
Grosse Ile Educational Foundation receives a specific dollar amount, a specific piece of property, or a stated percentage of the estate. This is one of the most popular forms of bequests.

Residuary Bequest
Grosse Ile Educational Foundation will receive all or a stated percentage of an estate after distribution of specific bequests and payment of debts, taxes, and expenses.

Contingent Bequest
Grosse Ile Educational Foundation will receive part or all of the estate under certain specified circumstances.

Trust Established Under a Will
A trust may be established that provides for both Grosse Ile Educational Foundation and other beneficiaries.