Providing for LTLT in Your Will

A BRIEF GUIDE TO PLANNED GIVING

In all honesty, not many of us like to think ahead about our final days and our final words. In fact, half of us pass on without a written estate plan. Yet we all have an opportunity to leave a lasting legacy that speaks of what we are about and what we hope for those we leave behind.

Planned giving provides the tools for each of us to make a meaningful final statement about what we love and cherish and hold dear. Whether honoring a loved one or a favorite charity, our planned gifts provide support that continues long after the reading of a last will and testament.

Listed below are some of the most common bequest and trust arrangements. This information is general in nature; we strongly recommend that you consult your attorney and your tax or financial advisors to draw up an estate plan that is specific to your interests and needs.

WILLS AND BEQUESTS

A will enables you to:

• direct the distribution of your assets

• provide for your heirs in the way you choose rather than as state and federal laws        direct

• possibly reduce or eliminate certain estate taxes and court costs, and

• designate a portion of your assets as a gift to your favorite charity.

Testamentary gifts to the Land Trust for the Little Tennessee (LTLT) or other charities can take many forms, either through a new will, or through a 'codicil,' an amendment to your existing will. There are several different types of charitable bequests that you may select:

Cash Bequest

LTLT receives a specified dollar amount.

Specific Bequest or Devise of Property

LTLT receives specified assets, such as securities, an interest in real estate (such as a residence or land), or tangible personal property (such as art work, jewelry, or rare books).

Residuary Bequest or Devise

LTLT receives all or a percentage of the remainder of your estate after specific legacies, debts, taxes, and estate expenses have been paid.

Contingent Bequest or Devise

LTLT receives a gift according to the language of the bequest. There are a wide variety of conditions that you could place on such a bequest. For example, if you outlive other named beneficiaries, then part or all of your estate would benefit LTLT.

EXAMPLES OF TESTAMENTARY LANGUAGE

The following are examples of language that can be included in your will or trust and tailored to address your specific interests:

Unrestricted Bequest

I give and bequeath to the Land Trust for the Little Tennessee, a non-profit organization (Tax ID # 56-2142199), with a principal business address of 88 E. Main St, Franklin, NC 28744, for its general purposes, the sum of ____ Dollars ($____) - OR - __% of my residuary estate.

An unrestricted bequest allows your support to be used in the area of greatest need.

Restricted Bequest

I give and bequeath to the Land Trust for the Little Tennessee, a non-profit organization (Tax ID # 56-2142199), with a principal business address of 88 E. Main St, Franklin, NC 28744, the sum of ____ dollars ($___) - OR - __% of my residuary estate to support ______________ (e.g, education, conservation, recreation, historic preservation).

If you have a more specific purpose in mind, please contact us so we can work with you to ensure that your wishes are met.

Bequest of Specific Assets

I give and bequeath to the Land Trust for the Little Tennessee, a non-profit organization (Tax ID # 56-2142199), with a principal business address of 88 E. Main St, Franklin, NC 28744, for its general purposes, ____________________ (e.g., a vacation home, acreage, a painting, stocks, jewelry).

Include specific details, such as the address of a vacation home or the title and artist of any piece of art.

TAX BENEFITS

Your bequest to LTLT may qualify your estate for a charitable deduction equal to the entire amount of the bequest. Please consult your tax or financial adviser for further information.

CHARITABLE REMAINDER TRUSTS AND CHARITABLE LEAD TRUSTS

As an alternative to an outright bequest, you may wish to consider establishing either a charitable remainder trust or a charitable lead trust during your lifetime or through your estate plan.

Charitable Remainder Trust

One or more named beneficiaries receive income for life or for a specified term of years, after which time the assets pass to LTLT. Through this arrangement, you can provide income to family members or friends, realize significant tax savings, and ensure important benefits to LTLT after the trust's termination.

Charitable Lead Trust

Income from the trust is paid to LTLT for a period of years, after which time the assets pass to your heirs, usually your grandchildren, at a reduced estate tax cost. By substantially reducing estate and other transfer taxes, this arrangement allows you to preserve a larger portion of your estate for your beneficiaries.

RETIREMENT PLANS

IRAs, 401(k)s, 403(b)s, Keoghs, and other retirement plan assets make up an increasingly large part of many estates. When left to your heirs, these assets can be subject to income, estate, and other transfer taxes. Naming LTLT as a beneficiary or contingent beneficiary of all or a percentage of your plan assets may reduce or eliminate both income and estate taxes. Note that designating a specific dollar amount, rather than a specified percentage, may result in the inclusion of these funds in your gross estate for tax purposes.

To designate LTLT as the beneficiary of some or all of your retirement plan funds, please use the following language on the retirement plan forms:

To the Land Trust for the Little Tennessee, a non-profit organization (Tax ID # 56-2142199), with a principal business address of 88 E. Main St, Franklin, NC 28744, for its general purposes - OR - to support _________________ (e.g., conservation, recreation, education, historic preservation).

Retirement plan assets can also be placed in a testamentary charitable remainder trust to provide income to your heirs for life or a specified term of years with the remainder interest passing to LTLT.

LIFE INSURANCE

Life insurance is another asset that many people utilize to support a favorite charity, especially when a policy no longer serves its original purpose. Such gifts often provide certain tax benefits as well. To designate LTLT as the primary or contingent beneficiary of some or all of your life insurance policy, you can use the same language that is suggested for use in designating retirement plan assets (see above).

MEMORIAL GIFTS

Many individuals request that survivors send charitable gifts in lieu of flowers. We request that you ask people to send such memorial gifts to the "Land Trust for the Little Tennessee," P.O. Box 1148, Franklin, NC 28744. Please ask them to indicate who is being honored, as well as who should be notified of the memorial gift (e.g., surviving spouse, parent, or child).

FOR MORE INFORMATION

To find out more about planned giving options, we strongly recommend that you consult your attorney and your tax or financial advisors. You can also ask your attorney or financial advisor to contact us. Each inquiry is handled confidentially and places you under no obligation.

If you have included LTLT in your will or estate plan, we hope you will share this general information with us. We do not need to know the particular details of your planned gift. Instead, we simply want the opportunity to say thank you and recognize your generosity.