Charitable Lead Trusts #charitable #lead #annuity #trust


Charitable Lead Trusts

A charitable lead annuity trust gives you a way to make a large gift to charity, get a tax break, and eventually leave assets to family members. These trusts are complicated, and they re most often used by rich people who want to donate to charity and avoid the federal gift and estate tax (which only the very largest estates pay). In recent years, changes in the federal gift and estate tax laws, as well as market conditions, have made charitable lead trusts more attractive to wealthy donors.

You can establish a charitable lead trust during your life or at your death, but it s most common to create one at death. You direct that certain assets (usually cash or securities) be held in the trust for a particular charity. The charity receives payments from the trust each year for a certain number of years. When that period is up, the trust ends, and whatever assets are left in the trust go to beneficiaries you named your children or grandchildren, perhaps.

Advantages of a Charitable Lead Annuity Trust

The charity benefits by receiving a reliable stream of income for as long as the trust lasts. The financial benefit to you is that any leftover assets going to your non-charitable beneficiaries can be transferred free of federal gift and estate tax. For example, you could put $1 million in a charitable lead trust and end up with several hundred thousand dollars for your eventual beneficiaries and get the same gift and estate tax benefit as if you had simply written a $1 million check to the charity.

The non-financial benefit, of course, is that you further the work of a tax-exempt entity that you believe in a university, research institution, arts group, hospital, human rights or animal welfare organization, to name just a few possibilities.

Other kinds of charitable trusts also let you save on taxes while making large charitable donations. For more information, see the articles on Charitable Remainder Trusts and Pooled Charitable Trusts .

How the Trust Works

Here s a more detailed look at the mechanics of the trust and some factors you should think about if you re considering this kind of trust as part of your estate planning.

The trust is irrevocable. Once you put assets into a charitable lead trust, they re locked up; you can t change your mind and get them back. Given that it usually doesn t make sense, financially, to create one of these trusts unless you can put $1 million or more in it, it s a big commitment.

How long does it last? Many of these trusts are written to last 10 to 20 years. You can, however, specify that the trust is to last for a certain person s lifetime for example, you might want the trust to last as long as your spouse lives. (There are restrictions on whose life you can use for this purpose only your own, your spouse s, or certain lineal descendants.)

How much will the trust and family members inherit? With an annuity trust, each year the trust pays the charity a percentage of the initial value of the assets. You set the percentage. The charity is guaranteed to get this amount or all of the trust assets, if the money runs out before all of the promised payments can be made. Your non-charitable beneficiaries don t have any guarantees; how much, if anything will be left for them depends on the return on investment of the trust assets. If returns are greater than payments, there will be something left.

How the tax benefit works. When you set up a charitable lead trust, the IRS determines the present value of your total gift to the charity over the life of the trust. The present value of your charitable gift isn t subject to the gift and estate tax.

To make the present value determination, the IRS takes into account the amount that will be paid to the charity each year, the length of the trust, and the expected return on investment of trust assets. The IRS assumes the return on investment of the trust assets will be at the applicable interest rate, also called the hurdle rate. The IRS sets the hurdle rate each month. It is based on U.S. Treasury rates, which means that for the last few years, the hurdle rate has been very low around 1.5% for much of 2012.

The amount the trust assets are expected to be worth at the end of the trust term, less the present value of your gift, leaves the amount your non-charitable beneficiary is expected to receive. Only that amount is subject to gift and estate tax and will likely be covered by using a small part of your gift and estate tax exemption ($5.49 million per person, and twice that for married couples, in 2017).

Example: Say you put $1 million in a 20-year charitable lead trust for your alma mater and direct that the university is to receive $50,000 each year. At the end of 20 years, whatever is left is to go to your daughter. The IRS, using the hurdle rate in effect when you establish the trust, estimates that after 20 years, there will be about $116,000 left for her. That amount is subject to gift and estate tax but because it s well below the exempt amount, no tax will be due. If after 20 years there s actually much more money left for your daughter (because the trust assets grew at a greater than predicted rate), it won t be subject to estate tax (the trust assets are out of your estate). On the other hand, if investment performance is unexpectedly bad, there may be less or nothing for your daughter.

Financial and Legal Planning for a Charitable Lead Trust

Obviously, you need very good legal and financial advice to set up a charitable lead trust. They re very complicated devices, with lots of possible variations. A trust needs to be drawn up by a lawyer who s got a lot of experience with estate tax planning and who understands your financial and personal situation. The trusts desirability also depends on outside factors that change, it seems, constantly: interest rates and federal tax laws. Get reliable, up-to-date advice from an expert before you decide to go down this road.

Talk to an Estate Planning attorney.


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Vas authentication #digital #trust, #data #security, #data #cybersecurity, #trust #to #the


Mobile Banking Apps Offer Great Opportunity Serious Risk. We Secure Them.

By 2019, nearly 2 billion people will be using a mobile device for banking transactions. With hackers targeting mobile apps, particularly banking apps, developers need to harden their apps against cyber criminals.

Our comprehensive software development kit (SDK) natively integrates application security, including Runtime Application Self Protection (RASP), next gen biometric authentication and transaction signing into your mobile applications.

Solutions for All Industries

VASCO designs strong authentication solutions to fit a wide range of industries, IT infrastructures and business needs. We build competitive solutions that incorporate open protocols for ease of integration and low cost of ownership.

Financial Security Solutions

We secure more than 10,000 clients, 1,700 of which are international banking institutions. Financial service providers know that online and mobile access are key growth opportunities, but these opportunities have gone untapped due to security breach fears. With VASCO’s proven anti-hack solutions, we provide convenience to your clients and the competitive edge to you.

Healthcare Security Solutions

VASCO is a global leader in protecting the world’s most sensitive information, and offers a suite of strong, scalable and easy-to-deploy solutions tailored to help healthcare organizations protect identities, safeguard patient records, and enable compliance with regulations. We secure remote-access to patient records and monitoring devices in addition to providing the two-factor authentication required for e-prescriptions.

Government Security Solutions

Governmental and public sector services can provide effective and efficient online services. To avoid identity theft or unauthorized access to confidential files, VASCO’s strong authentication solutions will replace insecure static passwords with highly secure one-time-passwords; facilitate transaction or document signing with identity-confirming electronic signatures; and encrypt data files for emails, disk and all other digital files.

e-Gaming Security Solutions

The massively multiplayer online game (MMOG) industry has proven to be a popular new entertainment medium and has also become an attractive target for online fraudsters. VASCO’s two-factor authentication technology is a very simple and effective way of bridging the security gaps inherent with static passwords. With two-factor authentication, MMOG companies can regain gamers’ trust and reduce account turnover.

Payments Retail Security Solutions

Online payments is a critical aspect for many industries ranging from banking to retail. VASCO’s strong authentication solutions will replace insecure static passwords with highly secure one-time-passwords; facilitate transaction or document signing with identity-confirming electronic signatures; and encrypt data files for emails, disk and all other digital files.


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Real Estate Investment Trust (REIT) #real #estate #trust #company


Real Estate Investment Trust – REIT

BREAKING DOWN ‘Real Estate Investment Trust – REIT’

REITs, an investment vehicle for real estate that is comparable to a mutual fund. allowing both small and large investors to acquire ownership in real estate ventures, own and in some cases operate commercial properties such as apartment complexes, hospitals, office buildings, timber land, warehouses, hotels and shopping malls.

All REITs must have at least 100 shareholders, no five of whom can hold more than 50% of shares between them. At least 75% of a REIT’s assets must be invested in real estate, cash or U.S. Treasurys; 75% of gross income must be derived from real estate.

REITs are required by law to maintain dividend payout ratios of at least 90%, making them a favorite for income-seeking investors. REITs can deduct these dividends and avoid most or all tax liabilities, though investors still pay income tax on the payouts they receive. Many REITs have dividend reinvestment plans (DRIPs​). allowing returns to compound over time.

REIT History

REITs have existed for more than 50 years in the U.S. Congress granted legal authority to form REITs in 1960 as an amendment to the Cigar Excise Tax Extension of 1960. That year The National Association of Real Estate Investment Funds, a professional group for the promotion of REITs is founded. The following year it changed its name to the National Association of Real Estate Investment Trusts (NAREIT) .

In 1965 the first REIT, Continental Mortgage Investors, is listed on the New York Stock Exchange (NYSE). By the late 1960s, major investors, including George Soros. become interested in research on the value of REITs. Mortgage based REITs account for much of the growth of REITs in the early 1970s, and they fuel a housing boom. The boom busts after the oil shocks of 1973 and the recession that follows.

In 1969 the first European REIT legislation (the Fiscal Investment Institution Regime [fiscale beleggingsinstelling. FBI]) is passed in The Netherlands.

International REITs

​Since their development in Europe, REITs have become available in many countries outside the United States on every continent on Earth.

The first listed property trusts launch in Australia in 1971.

Canadian REITs debut in 1993, but they don’t become popular investment vehicles until the beginning of the 21st century.

REITs began to spread across Asia with the launch of Japanese REITs in 2001.

REITs in Europe were buoyed by legislation in France (2003), Germany (2007) and the U.K. (2007). In total, about 40 countries now have REIT legislation.

3 Main Kinds of REITs in the U.S.

1. Equity REITs invest in and own properties, that is, they are responsible for the equity or value of their real estate assets. Their revenues come principally from leasing space—such as in an office building—to tenants. They then distribute the rents they’ve received as dividends to shareholders. Equity REITs may sell property holdings, in which case this capital appreciation is reflected in dividends. Timber REITs will include capital appreciation from timber sales in their dividends. Equity REITs account for the vast majority of REITs.

2. Mortgage REITs invest in and own property mortgages. These REITs loan money for mortgages to real estate owners, or purchase existing mortgages or mortgage-backed securities. Their earnings are generated primarily by the net interest margin. the spread between the interest they earn on mortgage loans and the cost of funding these loans. This model makes them potentially sensitive to interest rate increases. In general, mortgage REITs are less highly leveraged than other commercial mortgage lenders, using a relatively higher ratio of equity to debt to fund themselves.

3. Hybrid REITs invest in both properties and mortgages.

Individuals can invest in REITs either by purchasing their shares directly on an open exchange or by investing in a mutual fund that specializes in public real estate. Some REITs are SEC -registered and public, but not listed on an exchange; others are private.

Some REITs will invest specifically in one area of real estate—shopping malls, for example—or in one specific region, state or country. Others are more diversified. There are several REIT ETFs available, most of which have fairly low expense ratios. The ETF format can help investors avoid over-dependence on one company, geographical area or industry.

REITs provide a liquid and non-capital intensive way to invest in real estate. Many have dividend yields in excess of 10%. REITs are also largely uncorrelated with stocks and bonds, meaning they provide a measure of diversification .


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What happens if I name a trust as beneficiary of my


What happens if I name a trust as beneficiary of my IRA?

What are the consequences of making my trust the beneficiary of my traditional IRA?


There are a few common reasons for naming a trust as beneficiary of an IRA. One is to maintain control — to ensure that the assets of the IRA are distributed according to the same plan that is set up in your trust. Such control may be important if, for example, the beneficiary is a child or has special needs. Another reason is to fund a bypass trust — that is, to make sure that you can make optimum use of your estate tax exemption amount.

However, there are plenty of disadvantages to naming a trust as beneficiary. For one thing, you will be funding the trust with pretax money. So, say you direct $500,000 of IRA money into the trust. The trust will not actually be funded with $500,000. It will be $500,000 minus the taxes owed on the IRA when the money is distributed. By contrast, if you put $500,000 of cash in the trust, the trust is funded with the full $500,000, because the cash is after-tax money.

If you are married, another risk in naming a trust as beneficiary is that your spouse cannot automatically roll over your IRA into an IRA in his or her own name when you die. For a spouse to be able to do that, the spouse — not the trust — must be the beneficiary. Being able to roll over a deceased spouse’s IRA is a huge advantage and one you should think twice about giving up.

It is possible to name a trust and still manage to roll over some or all of the IRA, but it will take a good lawyer to structure the trust and beneficiary designation properly, and even then, there are no guarantees. Some taxpayers have made it work, others have not.

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TD Canada Trust #flights #cheap #tickets

#first class travel

Card features and benefits

Travel protected with Travel Medical Insurance 6 and Travel Cancellation 7 /Trip Interruption Insurance 7 .


The changes to the value of TD Points for Book Any Way travel purchases are:

  1. Being postponed until November 15, 2015, if your statement address is outside of Quebec. Click here for more information.
  2. Being postponed at this time, if your statement address is in Quebec. Click here for more information.

1 Offer applies only to new TD First Class Travel Visa Infinite Account (Account) applications made between November 2nd, 2015 and January 4th, 2016. The Welcome Bonus of 20,000 TD Points (Welcome Bonus) will only be awarded to the Account if your application is approved and only after the first Purchase is charged to the Account. Limit of one (1) Welcome Bonus offer per Account. We reserve the right to limit the number of Accounts opened by any one person. Please allow 4 to 8 weeks for the Welcome Bonus to be applied to your Account. The $150 credit from Expedia For TD ($150 Credit) will only be credited to your Account after your minimum $150 Expedia For TD travel Purchase has been charged to the Account by no later than June 15th, 2016 (Expedia Purchase). Limit of one (1) $150 Credit per Account. The $150 Credit will appear no later than on the second statement you receive following your Expedia Purchase. Other conditions apply. Offer may be changed, extended or withdrawn at any time without notice and cannot be combined with any other offer.

Annual interest rates, fees and features are current as of November 2, 2015 unless otherwise indicated and subject to change.

2 Expedia For TD is operated by Expedia, Inc. at and 1-877-222-6492. The Toronto-Dominion Bank and its affiliates are not responsible for any of the services and products offered/provided by Expedia, Inc.

3 TD Points are earned for Purchases charged to the Card. Credit for refunds, returned items, rebates or other similar credits will reduce or cancel the TD Points earned by the full or partial amount originally charged to the Account. Fees, Cash Advances (including Balance Transfers, Cash-Like Transactions and TD Visa Cheques), interest charges, optional services, refunds, rebates or other similar credits do not earn TD Points.

4 Expedia’s Best Price Guarantee only applies to Packages, All-Inclusive Vacations, Pre-Paid Hotels, Pre-Paid Car Rental products and Flights. To take advantage of Expedia’s Best Price Guarantee, you must submit a claim online at Expedia For TD within 24 hours of your Expedia For TD booking. The claim will be reviewed and you will be contacted by Expedia For TD within 72 hours of receipt of your claim. For all the Terms and Conditions of Expedia’s Best Price Guarantee Protection visit, log in and click on the Best Price Guarantee.

5 TD Points must be redeemed in minimum 10,000-point increments for travel Purchases charged to your Card that are booked online or by phone through Expedia For TD. For travel Purchases charged to your Card that are not booked through Expedia For TD, TD Points must be redeemed in minimum increments of 200 or 250 TD Points as fully explained in the TD Travel Credit Cardholder Agreement for your Card. We can decrease the required minimum TD Point redemption increment at any time. To redeem TD Points for travel Purchases charged to your Card that are not booked through Expedia For TD, Cardholder must contact the TD Travel Rewards Program or visit after the travel Purchase has been posted to the Account and within 90 days from the transaction date of the travel Purchase. The required TD Points will be redeemed from the TD Points balance available at the time the TD Points are redeemed for the travel Purchase, not the transaction date of the travel Purchase. The amount that will be credited toward the travel Purchase will be equal to the value of the TD Points redeemed. If there are insufficient TD Points available to cover the entire amount of the travel Purchase, the Account will only be credited by the value of the TD Points redeemed. Any amount of the travel Purchase not covered by the TD Points redeemed will remain on the Account for payment.

6 Underwritten by TD Life Insurance Company. Medical and claims assistance, claims payment and administrative services are provided by our Administrator. Benefits, features and coverages are subject to conditions, limitations and exclusions including a pre-existing condition exclusion, that are fully described in the Certificate of Insurance included with your TD Credit Cardholder Agreement which can be found at Note that this insurance offers different benefits on different terms and conditions than the optional Travel Medical Insurance that is available to all TD customers. The day of departure from, and the day of return to, your province of residence each count as one full day. 15-day coverage if you’re under 65 and 4-day coverage if you’re 65 or older.

7 To be eligible for this insurance, your trip must be paid for in full using your TD Credit Card and/or associated TD Points. Underwritten by TD Life Insurance Company (for medical covered causes) and TD Home and Auto Insurance Company (for non-medical covered causes). Benefits, features and coverages are subject to conditions, limitations and exclusions including a pre-existing condition exclusion, which are outlined in the certificate of insurance provided with your Credit Card.

8 Primary Cardholder remains liable for all charges to the Account, including those made by any Authorized User.


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