Life Income Gifts

Life income gifts allow you to enjoy the benefits of an increased return on your investment income while also providing significant resources for the FMDH Foundation. Planned giving through a life income arrangement offers you a number of alternatives for giving while continuing to generate lifelong income for you and your spouse.

Charitable Gift Annuity (Current and Deferred)

A charitable gift annuity is a contract between you and the FMDH Foundation that provides you with an income stream for life in exchange for your gift of cash or other property. The annuity is a fixed sum of money, agreed upon by you and the Foundation and is paid to you monthly, quarterly, semi-annually or annually.

FMDH Foundation holds your gift while you are living and may utilize the remaining balance upon your death. You receive an immediate charitable income tax deduction for establishing a gift annuity. If you designate the charitable remainder to an endowment fund at the Foundation you may also qualify to utilize the Montana Endowed Tax Credit.

Advantages of giving through a charitable gift annuity:

• You receive current charitable tax deduction on your federal taxes
• You reduce your taxable estate
• You are paid income from your gift for life
• Satisfaction of knowing that you are making an incredible difference at the FMDH Foundation

Charitable Remainder Trust (CRT)

A charitable remainder trust is a popular form of planned giving. Through a legal arrangement you transfer cash or property to the Foundation in a trust. FMDH Foundation, as trustee, makes payments to you or other beneficiaries.

The payment is a fixed or annually adjusted percentage of the trust property’s net fair market value. At the end of the trust’s term, assets remaining in the trust become the property of FMDH Foundation. A charitable remainder trust is a good choice for you if you would like current tax advantages and are interested in passing on your gift to the Foundation rather than to heirs.

Advantages of giving through a charitable remainder trust:

• You receive current income tax deduction
• You reduce your taxable estate
• Generates income
• You benefit from any increase in the fair market value of your assets
• Helps avoid paying capital gains tax

For more information about life income gifts, please call the FMDH Foundation Office at (406) 228-3556. We also encourage you to discuss your giving plan with your legal, tax, or financial advisor.