LegacyChange Plans

Estate Asset Information

Prevent Inheritance Conflict

Tax Savings

  Economical-Efficient Asset Transfer

 Through a Non-Profit

Asset Transfer Organization

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Asset Transfer - Non-Tax Burden - Gifting Legacy - Keep Estate Planning Private

 

Minimize-Prevent inheritance disagreements & Family conflict before you need the following

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Check List For Trustee & Will Executor Responsibility (PDF) - Summarized

(When Desired, Ask for More Complete Responsibility Document)

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Your LegacyChange Plan

 

How It Works

 

Free Consultation

 

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LegacyChange (LC) has the expertise and administrative capabilities to assist charities and non-profits in two ways:

  • Receiving Non-Cash Donations – LC facilitates the donation of assets such as real estate, securities, annuities and life insurance. LC manages the entire process, from acquisition and receipt of the asset to the final granting of proceeds to the referring charity.
  • Planned Giving Programs – LC can also facilitate the transfer of non-cash assets to fund planned giving programs on behalf of other non-profits. LC will structure as well as administer planned giving programs in order to create income payouts for donors and their families.

LegacyChange Plans include immediate and deferred charitable gift annuities (CGAs) and charitable bargain sales with installment contract payouts (CBICs), as well as simple charitable remainder annuity trusts (CRATs). LCP secures the reinsurance contracts to back the obligation

Utilizing your Indexed, Fixed, or Variable Annuity for a LegacyPlan will allow you to achieve a number of objectives.

  • Avoid passing taxes on accrued gains to heirs.

  • Create an immediate income tax deduction.

  • Generate income for yourself and/or a structured inheritance for heirs.

  • Support your favorite charity or non-profit organization.

Here’s how it works for annuities, securities and various assets:

  1. Transfer ownership of your current annuity to LegacyChange (LC) Plan by completing a simple change of ownership form.

  2. A LC absorbs surrender penalties, if any, and issues a new LegacyChange Plan at the full accumulation value.

  3. Receive immediate or deferred income payments for life or specified number of years. The income stream can be directed to you, your spouse, your heirs or your favorite charity.

  4. A tax deduction is created. This deduction can be applied to your tax return to offset gains and may also be used to lower your taxable income reported to the IRS for the first year, with 5 years of carry-forward, if applicable.

  5. A LC supports charitable works with a portion of the proceeds from the transaction.

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Here’s how it works for real estate:
  1. We complete a brief preliminary illustration with owner detail. More illustrations may be done as one has more detail.
  2. As mentioned, to access full value of tax advantages the Legacy Plan moves through LegacyChange (LC) before the sale.

  3. One signs an option for LegacyChange (LC) to sell the property.

  4. One may cancel the option any time that cancels the property sale before accepting an offer. LC wishes for the owner to be happy with the deal.

  5. LC hires a local real estate broker to market property. LC has experienced staff and real estate officer to assist. One may recommend a broker.

  6. An experienced real estate broker does a windshield appraisal to assist price decision for the owner-seller’s information.

  7. A real estate broker is assigned or one may have own buyer.

  8. The owner-seller sets a lowest price and can accept a price as preferred.

  9. Seller may accept offer or not.

  10. If and when offer accepted, the LegacyPlan has closing.

  11. A tax deduction is created. This deduction can be applied to your tax return to offset gains and may also be used to lower your taxable income reported to the IRS for the first year, with 5 years of carry-forward, if applicable.

  12. When the sale is contracted or when preferred, a general appraisal (required by IRS) is completed within 60 days before or 60 days after the sale.

  13. Client and client CPA receive detail of plan and tax information.

  14. Client’s charity receives gift $.

  15. Client receives or defers income.

LegacyChange Plans (LCP) offer simplified charitable planned giving programs that we call "LegacyPlans", which enable families and individuals to reposition assets that they already own, such as securities, real estate and existing annuities, in order to create new benefits for themselves and their heirs. These include generating an income tax deduction, reducing capital gains taxes and estate taxes, creating an income stream for themselves or their heirs, while supporting their favorite charitable causes.

By working through a 501 (c)(3) non-profit organizations, ordinary families are able to benefit from provisions in the tax code that many thought were only available to very wealthy individuals. The chart below summarizes the features and benefits of LTF’s two most popular LegacyPlans.

 

CGA LegacyPlan *
(Charitable Gift Annuity)

CBIC LegacyPlan**
(Charitable Bargain Sale with Installment Contract)

Description

Provides tax-favored, lifetime fixed income for one or two individuals

Provides tax-favored, fixed installment payments for a specified number of years
Term of years payout to client and/or beneficiaries

Payout Options

Immediate or Deferred

Flexible Deferred (payments can begin anytime after 1 year)

Immediate or Deferred

Flexible Deferred (payments can begin anytime after 1 year)

Income Tax Deduction

Immediate tax deduction for current year with 5 year carry forward, if needed

Immediate tax deduction for current year with 5 year carry forward, if needed

Capital Gain Reduction

A portion of the gain is eliminated

Remainder amortized over life of income stream

A portion of the gain is eliminated

Remainder amortized over life of income stream***

Taxable Estate Reduction

Asset is removed from estate (one life or married couple)

If 2nd annuitant is not spouse, asset is partially removed from the estate

Gift portion of asset is removed from estate

Only present value of future income payments is included in estate

All diagrams and detail therein are scenarios to be updated and adjusted to each plan's individual requirement. This is educational information and is not intended to be legal or tax advice. Individuals should seek tax, legal or financial advice from an independent professional advisor.

*IRC §501(m)(5)

**IRC §453 and 26 CFR §1.1011-2

*** When transferring publicly traded securities, remainder of gain must be recognized in year of sale. Both products are not available in all states. Not FDIC insured or insured by any federal or state government agency. 

Assisting to Preserve and Maintain Client Wealth

Asset Transfer - Non-Tax Burden - Gifting Legacy

Business Entry-Management-Exit Plans - BEME

 

Tax Reduction Services - Legal - Estate - Tax - Exit Strategies & Planning

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Tax and Legal Advisers always recommended.  We can assist finding attorney.

Not all programs are available in every state. LC does not provide tax or legal advice.

LegacyChange Plans are not FDIC insured or Investments

Copyright © 2018 K. B. Wheeler Jr. All rights reserved 3-10  5-D  6