Arkansas Agriculture Edition 26 : Page 7
“We didn’t think there was any way we could avoid paying taxes,” Belk said. But they began researching a variety of options. Then he and Mary learned about Heifer Foundation’s charitable remainder unitrust (CRUT) and discovered the ideal solution for their dilemma. “We do get a quarterly benefit and that’s enough for us to live on,” Mary Belk said. Because of the financial security of their trust, the couple has lived comfortably and happily in Jonesboro since they retired 11 years ago. The second benefit, the Belks say, was that the trust they set up with Heifer Foundation allows them to share their blessings by leaving a sustained legacy for struggling farmers in other parts of the world. Small farmers helping other small farmers — what could be more ideal? “We’re so blessed with good soil and plenty of water. Other people aren’t as blessed as we are,” Charles said. “It’s good we can help other people who don’t have the advantages we have. It’s a win-win situation for everyone but the IRS.” Heifer Foundation has offered people like the Belks planned giving opportunities that serve their specific needs while helping others less fortunate. In addition to charitable remainder unitrusts, options include bequests in wills, named endowments and charitable gift annuities that offer fixed lifetime income. “There’s something for everyone,” Neill said, noting that planned giving offers donors “a good way to pass on their values.” When the board of Heifer International created the foundation, its purpose was to provide sustainable financial backing for Heifer International’s mission “to work with communities to end hunger and poverty, and to care for the Earth” by growing and overseeing an endowment to fund its programs. The two organizations are separate nonprofit charitable entities, but A versatile option A CRUT is unique in that it’s not an outright charitable transfer, but instead gives donors the rights to income from the trust for their lifetime. After they die, the trust passes to Heifer and any other charitable beneficiaries the donors have named. When a person decides to set up a CRUT, Heifer Foundation works with them, their financial consultants and their family to create a trust to suit their unique circumstances, says Ardyth Neill, the foundation’s Vice President of Asset Management, CFO and Interim CEO. “There are many ways to structure this given the individual’s needs,” Neill said. “It’s very versatile. I’d say we have no two that are exactly alike, although there are some that are similar.” The Belks set up the trust, signing over their assets to Heifer Foundation, which then handled selling them. This allowed the couple to avoid paying capital gains taxes while giving them a significant upfront tax deduction for the year the trust was established. Additionally, the assets used to fund the trust were exempt from any estate tax liability, Neill says. The Belks enjoyed a dual benefit in establishing their trust with Heifer. First, it resolved the tax issue and provided them with income for the rest of their lives. A CRUT requires that a specific percentage of the annual value of the trust be paid to the income beneficiary. An intertwined mission Since its founding in 1991, hunter: another word for conservationist Farm Drainage e, Irrigation & Culvert Pipe UÊi>ÛÞÊÊ7>Ê-Ìi]Ê{»ÊÌ ÀÕÊ È»]ÊÕ«ÊÌÊxä½Êd;i}Ì Ã UÊ1Ãi`Ê} *ÀiÃÃÕÀiÊd;iÊ*« «iÊ >`Ê>ÃÊd;iÊ*«i UÊ iÜÊ-ÌÀÕVÌÕÀ>Ê-ÌiiÊ*«i]ÊÓ Ó»Ê Ì ÀÕÊÓä» UÊd;>À}iÊ�c;>iÌiÀÊ*«iÊÊÈä»]Ê Çn»]ÊÈ» 7Ê�c;iÛiÀÊvÀÊ->Ê�a;ÃÌ° �c;-Ê«>ÃÌVÊ««iÊ`i>iÀÊ>` `Ê �a;ÀÀÕ}À>Ìi`Ê««iÊ`i>iÀ° 1-800-553-1373 Hunters do more to conserve habitat than any other group. And they have achieved great things for wildlife and wild places by supporting conservation organizations like Ducks Unlimited. With their support, Ducks Unlimited has conserved more than 12 million acres of habitat across the continent. Come share our vision of skies filled with waterfowl today, tomorrow, and forever. To find out more go to www.ducks.org NORTHSIDE STEE L Highway 63 Bypass Jonesboro, AR Arkansas Agriculture 7
