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Double Your Impact with a Give it Twice Trust

on June 28, 2019 in General by Truman Heartland Community Foundation

Commonly referred to as a “Give it Twice” Trust, a Testamentary Charitable Remainder Unitrust is an excellent way to include both family and charity in your legacy planning. These trusts can help you spread out an inheritance to your heirs over many years, reduce estate and income taxes, while leaving a significant legacy to your favorite charity.

An Example of a Give it Twice Trust
Helen’s estate includes an IRA and other property totaling $350,000. Helen would like to gift $100,000 to her children and leave $250,000 from her IRA to her grandkids, but not all at once. So, Helen created a 20-year, 5 percent Give it Twice Trust for her grandkids’ benefit through her estate plan.

NOTE: This educational illustration is based on a variety of income and tax assumptions.
This is not professional tax or legal advice. Consult a tax advisor about your specific situation.

Helen gifts $250,000 from her IRA to the trust, avoiding taxation on the IRA
Helen’s grandkids receive trust income annually for 20 years. Over the 20-year trust term, the estimated total income is $275,238.
When all income payments to the grandkids have been made, Helen’s favorite charity receives an estimated $305,048.

Instead of leaving a large inheritance all at once, with a Give it Twice Trust Helen can determine the amount her grandkids receive, the frequency and the duration. With proper management, Helen’s investment will preserve the principal value of her IRA and provide larger payouts for her grandchildren and a substantial remainder for charity.

Learn More About Legacy Planning

Download our Legacy Society brochure and discuss this strategy with your professional advisor. You can also make an appointment to meet one-on-one with Phil Hanson to learn more about the benefits of using a Give it Twice Trust at Truman Heartland to support your favorite charities.