In investment circles, a bond is debt instrument issued by governments and corporations whereby the investor(debt holder) will receive periodic interest payments(usually every 6 months) plus the principle(amount borrowed by govt or corp) at the end of the term. Terms are typically 10-30yrs. Notes are more than 1 yr up to 10yrs.

Bonds may be purchased at face value, at a discount, or at a premium. The interest rate on the bond vs the market rate determines the price at which the bond is purchased.

Trusts avoid taxes primarily through charitable means. One of the most commonly used trusts is called the Charitable Remainder Trust. It gives you these tax advantages

1. Long term appreciated property(held for more than a year) placed in a trust avoids capital gains tax when sold in the trust.

2. When the property is placed in the trust , the donor gets an upfront tax deduction based upon the fair market value of the property at that time.

The asset grows tax free in the trust

As with any type tax deduction, there are other qualifiers and limitations which vary depending on the type property being placed in the trust.

The payments from the charity are backed by the entire assets of said charity. The payments can be made monthly, quarterly or annually. They can be made for a set number of years, or for the life of both spouses-obviously payments made for life are less than for a set number of years. You can have payments begin immediately(immediate annuity), or they can be deferred for over a year(deferred annuity). Please note that some charities may not be willing to defer payments for a long period of time.

Yes, real estate can be donated to a charity subject to acceptance by the charity. It can be transferred directly in whole or in part by deeding an undivided interest. It can also be donated in whole or in part through a Charitable Remiander Trust, which has certain capital gains tax advantages.

An irrevocable life insurance trust is a trust that contains a life insurance policy that has been placed there mainly for the purpose of shielding the death benefit from estate taxation. For existing life insurance policies, the policy must be in the trust for a period of at least 3 years prior to the insured’s death. If a new policy is placed in the trust, then there is no waiting period.
Issues to consider are:
1. Irrevocable means just that-it’s done-typically cannot be reversed.
2. The trust must be so drafted that the premiums payable on the policy will not be a taxable gift.
3. If an existing policy is placed into the trust, and the cash value is in excess of what can be transferred tax free, then it may be necessary to borrow the cash value from the policy prior to transfer.

Yes it is. However, in order to be able to remove the life insurance death benefit from the taxable estate, it must be in the trust for at least 3yrs prior to a person’s death.
If a policy is placed into the trust at the outset, there is no waiting period.

First I am going to define what I believe you mean by “tax-effective”-Getting the most deduction possible in the year of the gift".
1. You can typically deduct cash gifts up to 50% of AGI.Non-cash gifts such as real estate are usually limited to 30% of AGI. Now-you can use the excess for up to 5yrs, but going back to our definition-cash gives you a greater deduction upfront.
2.Interest rate levels are a key factor in determining tax effective giving. The AFR is the rate used in charitable gift transactions in determining the size of the deduction. For example, when giving a life estate in your home, the lower AFRs give you the higher deductions. With a Charitable Gift Annuity, the lower the AFR the lower the tax deduction. So interest rate levels can determine when to give and what type gift planning tool to use.
3. Using certain trusts like Charitable Remainder Trusts are an incredibly effective way to give, You can place an appreciated property such as real estate in the charitable trust. You get an immediate tax deduction based on the “remainder interest” that goes to charity at the end of the trust term. In addition, when the property is sold while in the trust-you do not have to pay capital gains tax.
Effective tax and gift planning can be a very complex issue. Each donor’s and charities needs determine the best approach.

The earnings in your annuity GROW tax deferred. This means that as long as you do not withdraw monies there will not be a taxable event unlike mutual funds that can send you 1099s yearly regardless of whether or not you withdrew funds. Once you withdraw funds from your annuity, you will be taxed on the growth over and above your contributions. You will also be taxed
on the contributions if those monies were also tax deferred.
Simple rule-if money is not taxed going in, it will be taxed going out and if taxed going in, it will not be taxed going out.

You can typically move your annuity to another company without penalty if you are outside of the surrender charge time frame.
This period will vary with different types of annuities and with different companies. The surrender charge periods are commonly 3,5 7, or even 10 years.
The actual penalty amounts again vary with product and company.

There are several ways to do this
First and foremost, be sure you are correctly applying the charitable tax laws-mistakes can cost you dearly later.
Second, cash gifts are deductible up to 50% of AGI where non-cash gifts are only deductible to 30% of AGI-so cash can give you a bigger deduction.
Third-certain charitable giving situations like Charitable Remainder Trusts will only work with real estate that does not have any debt-the IRS severely curtails/disallows deductions that are attempted in this situation where debt is present.
Fourth- Interest rates affect your deduction-as an example-giving a life estate in real estate will always give you a greater deduction with a lower interest rate environment.
Fifth-Give gifts that give you immediate tax relief-most do-obviously bequests do not as the deduction only comes when you die and your estate is settled.

Actually a planned gift can be deferred or immediate.
Examples of immediate planned gifts are annuities, real estate-either in whole or in part.
Example of a deferred gift would be a bequest from your will.
Factors that would determine which type gift makes more sense include:
Needs of the Charity
Needs of other heirs
Tax considerations-do you need an additional tax deduction now?
Current Estate tax/planning laws-
Current interest rate environment-example-the current low interest rate environment may make certain gifts more advantageous now vs later when rates could increase.

I hope this helps clear this up somewhat for you. Planned giving is a fairly complex area; and is best discussed with respect to specific situations

Pure term life insurance pays out the death benefit upon the death of the insured provided that the death happens within the term of the policy-whether it’s 10, 15 20,25, or 30yrs. Since there is not an accumulation of cash value -this is the only payout or cash that will come from the policy.

Exception
Term ROP-Will refund premiums paid after a certain number of years if the death benefit was not paid.

Another exception is Term UL which has a more complex payout structure that I would feel would be more appropriate answering after actually speaking with a prospective client and finding out their needs.

A commercial annuity is a contact between an individual and a life insurance company whereby the individual gives the ins co. a sum of money now for an income stream that will commence immediately
or at some point in the future for a set period of time or for the life of the individual. The money grows tax deferred which is an advantage over mutual funds. With many annuities there are guarantees against loss of principle; and some even provide for
locking in market gains and future minimum income

There are many factors that can limit or eliminate your ability to deduct your charitable contribution in the year given.. One of the main considerations is cash vs property. Cash can usually be deducted up to 50% of your AGI. Non cash gifts(ex-real estate) are limited to 30% of AGI.
It’s always best to consult your tax professional on these matters before you commit to a transaction.

On my last answer, I forgot to mention that yes, your heirs can be beneficiaries on either a CRT or a CGA. There are some limitations in certain situations.