LEGACY PLANNING SERIES: CHARITABLE SPLIT INTEREST TRUST
Split Interest Gifts to a Charity, such as the RAF
As the name implies, a split interest gift involves two or more parties. One is the donor, the second is a tax-exempt 501(c)3 charity like the RAF.
This is an irrevocable gift of an asset – typically a highly appreciated, yet previously untaxed one – to a special trust or charitable gift annuity. The transfer and tax deduction is generally based on the fair market value of the asset (per the terms of each agreement), rather than an amount reduced by long term capital gain taxes.
A retirement income stream is paid to you or a named beneficiary for as long as your lifetime, while the remainder of the asset goes to the RAF at your passing. The income tax deduction you receive due to the gift may help reduce your annual income taxes for a number of years in the future.
What assets may be donated to this Charitable Split Interest Trust?
- Cash
- Publicly traded securities
- Some types of closely held business interests (Not Sub-S stock)
- Real Estate
- Personal property – Aircraft, RV’s, etc.
KEY BENEFITS
- Preserves the value of highly appreciated assets:
For those with significantly appreciated long term assets, including non-income producing property, you contribute that property to the trust and, when the trust sells it, it is exempt from tax. By donating assets in-kind to the trust, you preserve their full fair market value rather than a reduction by capital gain taxes. This allows for more income for you and the RAF. - Income tax deduction:
The trust gives you the potential to enjoy a partial income tax deduction when you fund it, and the remainder is distributed to the RAF. - Tax exemption:
The trust’s investment income is exempt from tax. This makes the trust a good option for asset divestment, and provides a larger income stream and remainder interest for the RAF.
Think of it as a Wealth Replacement Trust – The tax savings and potential increased retirement income flow could facilitate an insured wealth replacement trust for your heirs
NET RESULTS of the Charitable Split Interest Trust:
Capital gain tax savings, increased retirement income cashflow, a legacy gift to the RAF, and your heirs receive a tax-free bequest at your passing.
Submitted May 12, 2024
Posted in News
Recent Posts
Our many RAF supporters have such vast and varied experience, and we’re capturing some of their words of wisdom to share with you. This guest editorial is by Neil Mortine, a marketing and relations executive, RAF Supporter, and husband of RAF Ohio Liaison Christine Mortine.
Taylor Flat Airstrip, just a stone’s throw from the wild and scenic Green River as it carves through spectacular Utah canyons, is officially reopened. Thanks to a cooperative effort between the RAF and Utah Back Country Pilots (UBCP), Taylor Flat Airstrip, TF9, is one more recreational destination pilots can once again enjoy as the RAF works on Expanding The Map ! In 2023, dialog was initiated with the BLM to reopen the airstrip. Daggett County got involved, and RAF Utah Liaison Wendy Lessig navigated the required NEPA process. Lessig was instrumental in preparing a right of way (ROW) lease agreement application, coordinating between Daggett County, the BLM, and other stakeholders, and gathering information to assist the BLM throughout the required Environmental Assessment. “Thanks to Wendy taking action as the RAF Liaison, and her professional persistence following through the lengthy public review process, Taylor Flat Airstrip will reopen as another unique backcountry destination," RAF President Bill McGlynn said. The RAF and UBCP teamed up May 9 to revitalize the airstrip, which had lain dormant for thirty years. “The work party was a resounding success,” Lessig reports. ”We are grateful for the twenty-five volunteers who hand-picked rocks from the airstrip, and used them to mark the runway corners and threshold. “
Starting this month, we’re sharing messages from our RAF Safety, Education and Etiquette “SEE” committee. We hope you like the way we present these stories, and most importantly, we hope you’re one of those folks willing to sit around the campfire and help your friends become better at this thing we call backcountry aviation. We all see things that might not end well. We don’t intend to call anyone out for what might already be a bad day in someone’s flying life. In the interest of safety, we’re inviting you to be part of the culture starting with, “see something, say something.” The hard part might be how to politely deliver that message, and even more important, how to react if we are on the receiving end of someone’s comment. It takes maturity to accept input, especially at one of those moments when maybe we realize things could have just gotten much worse for us. I know I’ve been in “that place” when some thoughtful input about my flying or behavior has been offered. Part of flying is to always strive to be better; and when we aren’t at our best, try to own our shortcomings, learn from them, and move forward. I think about this often. I worry that if we don’t work at getting this part right, at best we risk losing access due to bad practices or behavior; and at worst we risk people getting hurt or worse. It’s that last piece that keeps me up at night. Of all the joys that doing this work brings us at the RAF, the risk of people getting hurt is what I think about the most. Safety, education, and etiquette are tied. Getting these right means the best outcome. So, get out there this summer. Get some grass stains on your wheels, get some bugs on your windscreen, get better at your craft of flying the airplane, meet some new people, and for sure start to create those special friendships that begin around a campfire under a starlit night. - John McKenna, RAF Chairman Submitted June 16, 2026
By RAF Director Bill Brine and the RAF's Safety, Education, and Etiquette Committee. Too many backcountry accidents happen on the third approach. After two unsuccessful attempts at landing, the pilot is tired, anxious, behind the airplane, and making decisions with a brain that has been running down since the first go-around. The airstrip hasn’t gotten easier. Third time’s NOT a charm. What’s driving this is cultural. Baseball is “three strikes, you’re out.” Could this thinking have joined us in the cockpit? We aren’t playing baseball out here. The backcountry does not give you that third strike. It gives you consequences. Our RAF Code of Conduct calls on each of us to establish personal minimums based on sound aeronautical decision-making — before we need them. Decide your limits at the kitchen table. Write it down. Brief your passengers. Commit to it before you start the engine. That’s when the rule does its job and leads to that hoped-for experience you set out on. Here is one worth considering: two attempts, fly away, head somewhere else . Not because your mission failed, but because you made a sound decision. Flying away is not defeat. Head to your alternate. Land, shut down, and let everyone decompress. Unload gear, leave passengers, go back solo, or call it a day. Those are good outcomes. Submitted June 15, 2026 Photo Credit: Scott Newpower
This month, the RAF is featuring our friend Charlie Gregoire, co-founder of innovative Redbird Simulators. Redbird's story is of a few guys who acted on their great idea to make it easier and more affordable for anyone to become a pilot. In 2006, they imagined a flight simulator that made a pilot feel like they were flying a real airplane. “We thought a decaying Cessna Cardinal RG was the perfect prototype,” Charlie said, and “Redbird” was born. “After a few more not-quite-right prototypes, we arrived at our first product, the Redbird FMX.” And driven by the idea to make initial flight training affordable, Redbird FMX is a great primary loggable training platform. Since then, Redbird has delivered over 7,000 aviation training devices to more than 60 countries. From desktop models to full-motion units, “We’re proud of the revolutionary changes our employees and customers are bringing to this industry we are all so passionate about,” Charlie says. Charlie also serves as a member of the special RAF group of volunteers we call the Vy Group. Pilots know that Vy is the “best rate of climb” speed, and these folks help steer the RAF in ways to “gain altitude” efficiently. Redbird and the RAF have partnered on the idea to prepare pilots for the unconventional demands of backcountry flying. Redbird has incorporated backcountry training scenarios, and graciously shares their wide selection of “off pavement” experiences by inviting pilots to try their hand in simulators at aviation events, like AirVenture and Sun ’n Fun. This year we invite you to Redbird’s interactive display at AirVenture, booth 301. While there, enjoy coffee and donuts with the Redbird team and us from 8:30 am to 10:30 am on Tuesday, July 21. Charlie and his team recognize the value of partnerships like ours. He says partnerships are an important part of Redbird’s past and future success. We share a common goal to make GA as safe as possible – wherever, and whatever you choose to fly – and keep it strong with passion, dedication, and commitment. See Redbird’s complete story here . Submitted June 15, 2026 By Carmine Mowbray
