Philanthropic Solutions for Individuals and Families

Charitable giving can play an important role in many estate plans.

Philanthropy can not only give you great personal satisfaction but also can give you a current income tax deduction, allow you to avoid capital gains tax, and reduce the amount of taxes your estate may owe when you die.

There are many ways to give to charity. You can make gifts during your lifetime or at your death. You can make gifts outright or use a trust. You can name a charity as a beneficiary in your will, or designate a charity as a beneficiary of your retirement plan or life insurance policy. Or, if your gift is substantial, you can establish a private foundation, community foundation or donor advised fund.

Regions' skillful administration is at the core of our philanthropic programs. Our comprehensive services include:

  • Planning and implementation
  • Distribution management
  • Cash flow analysis
  • Tax planning and compliance
  • State and federal reporting

Safeguarding capital resources with a trusted fiduciary protects both the charity and the donor. With Regions, you have access to a full selection of philanthropic services and a long-standing commitment to charitable giving.

Direct Gifts to Charities

A direct donation to a charity of your choice provides immediate income tax and estate tax benefits and guarantees that the gift goes to the charity of special interest. Direct gifts may be made during your lifetime or through a bequest after your death.

Your Wealth Advisor will help you receive the optimum benefits. Your team will:

  • Assist you in selecting the appropriate assets for gifting
  • Integrate your gift with other charitable giving strategies
  • Ensure that your instructions are executed in a timely manner
  • Facilitate gifts to selected charities even when you are away on business or vacation

Your Wealth Advisor has the experience and resources to help maximize available tax benefits and to complete the special valuations required by law.

Charitable Remainder Trust

When you create a Charitable Remainder Trust, you will place cash or appreciated assets in trust that eventually pass on to a specified charity, either at your death or at the death of the beneficiary. Until that time, the trust pays either you or your beneficiary a stream of income.

A common strategy includes replacing the assets used to fund the trust with investments producing a higher income. You are not responsible for capital gains tax on the sale of the original assets. At the same time, you (or your designated beneficiary) benefit from trust payments while the charity escapes erosion of its future interest and avoids capital gains tax. In addition, when the trust is funded, you may qualify for a charitable income tax deduction.

Regions Private Wealth Management can help you choose between two basic types of Charitable Remainder Trusts:

  • Annuity Trust Receive payments determined by the value of the trust when it is funded. This amount is at least five percent of the initial valuation. You can count on a reliable income stream every year.
  • Unitrust Receive payments based on a fixed percentage, rather than a fixed amount. Your payment is at least 5 percent of the trust's market value, based on an annual valuation.

Determining which trust is right for you can involve complex analysis. Let Regions help you understand the nuances.

Charitable Lead Trust

A Charitable Lead Trust allows you to provide a stream of payments to charity and to pass wealth on to future generations, incurring minimal or no transfer taxes. Typically, this type of trust is funded with assets you do not currently need, but wish to keep in your family.

Regions Private Wealth Management can help you establish a Charitable Lead Trust that:

  • Is funded with appropriate assets
  • Makes payments to charity
  • Passes to your beneficiaries after a specified period of time

Generally, donors do not receive income tax deductions for transfers to a Charitable Lead Trust. The transfer value is discounted and determined at the time the trust is funded. As a result, the donor pays gift or estate taxes only on the discounted value. If a Charitable Lead Trust is funded with assets that are expected to increase in value, it is an effective tool for transferring wealth, while benefiting a charity and reducing gift and estate taxes.

Private Foundations

A Private Foundation is a proven method of reducing estate and income taxes, as well as a means to contribute to a number of charities over time.

Administering a foundation can be a complex and time consuming task. For many of our clients, Regions handles administration and portfolio management as a trustee or investment manager, while family members retain control of the philanthropic activity.

Our team provides the following solutions:

  • Reviews trust documents
  • Completes monthly valuations
  • Calculates annual distribution requirements
  • Prepares state and federal tax reports and returns
  • Assists with philanthropic activity

In addition, we select investments designed to maximize returns in a tax-exempt environment, while remaining mindful of cash flow requirements and limitations imposed by the Internal Revenue Code.

Your Regions Wealth Advisor can bring a custom team of professionals together to help you maximize the return of your portfolio.

Charitable Trusts and Planned Giving are only part of Regions’ comprehensive wealth planning services. Let us know a little about your wealth management needs and a Wealth Advisor will contact you.