Chris and Anne treasure the financial help they've been able to give their children and the 1868 Foundation over the years. The couple recently updated their will to leave stocks and real estate to their kids. They left the Foundation a $75,000 IRA to be transferred following their lifetime. Because the Foundation is tax-exempt, all $75,000 will help support our mission. If Chris and Anne had left the IRA to their children, approximately $18,000* would have gone to pay federal income taxes—leaving only $57,000 for their family's use. Chris and Anne are happy knowing they are making the most of their hard-earned money thanks to their updated estate plan.

*Based on an assumption of a 24 percent marginal income tax bracket.

Carol, 68, wants to make a gift to the 1868 Foundation but would also like more income in the future. Carol creates a charitable remainder unitrust with annual lifetime payments to her equal to 6 percent of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000. Carol receives $30,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $276,880* in the year she creates and funds the trust. This deduction saves Carol $88,232 in her 32 percent tax bracket.

*Based on annual payments and a 3.2 percent charitable mid term federal rate. Deductions and calculations will vary depending on your personal circumstances.

When Lisa's father passed away, she knew she wanted to do something that would establish a lasting legacy for him. She remembered that during his lifetime he was always praising the Nebraska State Fair for its tireless efforts to better his community. Lisa decided to make a gift to the 1868 Foundation in her father's name using appreciated securities. Not only will her father's legacy live on at the Nebraska State Fair thanks to the gift a, but Lisa also received a federal income tax charitable deduction (because she itemizes her taxes) and eliminated capital gains tax on the securities.

Richard would like to support the Foundation and provide for his children. Richard received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, Richard funds a grantor charitable lead annuity trust with assets valued at $1,000,000. Richard's trust pays $70,000 (7 percent of the initial fair market value) to the 1868 Foundation each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to Richard. He receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, Richard receives approximately $767,240 at the end of the trust term.

*Assuming annual payments and a 3.2 percent charitable mid term federal rate.