Planned Gifts to the USCA
Guidon Bearer: An honored title for a worthy cause
A Cavalry Guidon Bearer is the mounted trooper who carried the troop or company guidon (flag). The Cavalry Guidon Bearer earned his place in our country’s history the hard way, on countless fields of battle. Immortalized in verse and story, usually anonymously and often posthumously, his image lives on in our memory thanks to movies that portray the Cavalry’s colorful past. In many of those films, as in the real life and death that they depict, it was the Guidon Bearer who was the most conspicuous target for enemy fire. His was a daring and dangerous duty; when one fell, as so many did, a comrade quickly seized the flag and faced the danger to keep that guidon flying.
BE A GUIDON BEARER
There are many ways that a member can honor and support the cause of his organization. Thoughtful long-range planning today will ensure the perpetuity of the history and lore of the cavalry. The U.S. Cavalry Association has established the "Guidon Bearer" as a symbol of this support. Under certain circumstances, a planned gift is an excellent way to provide this support. This can be accomplished by:
PLANNED GIFT TYPES
Planned Gifts can be made to the Foundation in a variety of ways. They are not limited to deferred gifts. They can involve a wide variety of direct transfers, including cash, securities, real estate, life insurance and tangible personal property.
- Cash can deduct the full amount of gifts to the Association and up to 50% can be carried over for five years.
- Appreciated Stocks and Bonds can deduct up to 30% of adjusted gross income can be taken on gifts of appreciated securities held for more than a year. Amounts in excess of 30% may be carried forward for an additional five years.
- Real Estate - same as appreciated Stocks and Bonds. But the property must be appraised.
- Tangible Personal Property - this would include books, manuscripts, paintings, Cavalry memorabilia, computers or other office equipment held for more than one year.
- Life Insurance - may be made by naming the Association irrevocably as the owner and beneficiary of the policy. An equal amount to the cash surrender value of the policy is deductible in the year of the contribution. Any premiums paid on the policy after its donation are also deductible.
CONTRIBUTIONS BY WILL
- Outright Bequests A specific sum or a percentage of a residuary estate, or a specific bequest of property may be stipulated.
- Bequests Reserving Income A bequest that reserved life income for a beneficiary may be made. Donors may use a number of lifetime plans to assure by will adequate support for their beneficiaries.
- Qualified Terminal Interest Property Trust When a spouse is the only non-charitable beneficiary named, a Qualified Terminal Interest Property may be created in a Will. As in a charitable remainder trust, a QTIP Trust may provide a life income for a spouse. Property so transferred qualifies for the estate tax marital deduction. The surviving spouse must include the property in his or her estate, but would be entitled to a corresponding charitable deduction, thus eliminating the estate tax.
DEFERRED CONTRIBUTIONS AND LIFE INCOME AGREEMENTS
There are several ways in which a substantial contribution can be made to the Foundation and thereby qualify for immediate tax benefits, while retaining income from the contributed property for spouse or children or grandchildren a Charitable Gift Annuity for tax purposes, the transaction is treated as the purchase of an annuity and as a charitable contribution to the extent that the amount transferred exceeds the value of the annuity. No trustee is required.
Benefits include guaranteed, specified income, part of which may be tax free, an immediate tax deduction, and possible estate tax savings.
- Deferred Charitable Gift Annuity A deferred charitable gift annuity enables a donor to get an immediate tax deduction and defer the receipt of income for a specified term of years. This can result in a deduction in a high-income year and defer income until both income and tax bracket are lower.
- Retained Life Tenancy in Personal Residence or Farm A retained life tenancy is probably the simplest way to make an irrevocable contribution to a designated charity while enjoying the property for your lifetime and that of your wife. Only a personal residence or farm can be contributed under this category. Tax deduction is determined by the present actuarial value of the gift, for example, the current fair market value of the property.
- Charitable Remainder Unitrust A unitrust is defined as “an irrevocable trust (requiring a trustee the donor may select including himself) which invests and reinvests assets contributed to it”. Designated individuals will receive payments for life or a term of years not to exceed 20 years. The property will pass to the designated charity after the expiration of the term or death of the last designated beneficiary.
The tax deduction received is the present value of the charity’s remainder interest.
- Charitable Remainder Annuity Trust This Annuity trust pays a fixed dollar amount or a fixed percentage (at least 5%) of the trust’s original fair market value. Although payments from a unitrust vary with the value of the trust, payment from an annuity trust remains fixed regardless of earnings or valuation. No addition can be made to an annuity trust. The two types of trusts enjoy similar tax benefits.
The U.S. Cavalry Association will honor those who provide this support by naming them as “Guidon Bearers” and so honoring them in the Annals of the Foundation and providing them with a miniature guidon. If you desire to make a planned gift, please inform the Headquarters as to the type of planned gift, so that it can be so recorded. If you would like more information, please contact the U.S. Cavalry Association, 785/784-5797.
Take your place in history; become a Guidon Bearer.
Please complete the following information for our records:
I am bequeathing a gift of $ ______________ in my Will to the U.S. Cavalry Association.
Type of gift:
- Cash ___________
- Stock or investments ___________
- Real Estate ___________
- Other _____________________________
I have made this request known to my Estate Executor.
City, State, Zip: _____________________________________