One estate asset can benefit both The Nature Conservancy and your heirs. By making a testamentary life-income gift, your estate can create and fund a charitable gift annuity or unitrust.
How It Works
The provisions in your will or revocable trust will be carried out by your executor or trustee and TNC after your death, and your estate will receive a charitable estate tax deduction for the gift.
Here's the process:
- You write a will or revocable trust directing a bequest to TNC with the provision that it first create a life-income gift benefiting your heirs.
- After your heirs’ income interest terminates, the remaining balance in the gift passes to TNC.
- Benefit both TNC and your heirs with one estate asset.
- Lower the estate tax burden on your estate.
- Make special provisions for your heirs, either by providing additional resources for an individual or by limiting that individual to a life income rather than a large outright bequest.
- Increase your planning flexibility with revocable provisions.
- Have satisfaction in knowing that you will provide for your heirs both financially and by supporting efforts to conserve our natural world for future generations.
Can It Work for You?
A testamentary life-income gift may be for you if:
- You want to make a significant gift to TNC but must also provide for family.
- You are looking for tools to reduce the tax liability your estate will bear.
- You want to direct income to a special-needs family member, to an employee or caregiver, or to beneficiaries who do not need a large outright bequest.
As with any bequest, a testamentary life-income gift is a revocable, future transfer. You receive no income tax deduction for the gift you are planning now. You can provide a specific dollar amount to fund the gift, or a percentage of the residue of your estate. Testamentary annuities run for the beneficiaries' lifetimes; testamentary unitrusts can run for the beneficiaries' lifetimes or for a term of years.