Leave a Legacy: Planned Giving
Today planned giving involves a wide array of giving options. Many of these gifts allow a donor to secure their family needs and support Sherman College at the same time.
- Charitable Lead Trust
- Charitable Remainder Trust
- Creative gifts through Retirement Plans
- Gift Annuity
- Gifts of Appreciated Property
- Gifts by Will
- Increasing your retirement income
- Life Insurance
- Disclaimer Statement
These gifts can support endowment funds and other naming opportunities at Sherman College. For more information please contact Marggi Roldan at 800.849.8771 ext. 277.
Charitable Lead Trust
You may create a Trust to provide income for Sherman College for a period of time you determine: 5, 10, 15, 20 years or more, for example. Through the use of the Charitable Lead Trust, it can be possible to transfer assets to heirs with little or no estate and gift taxes due. This plan is especially attractive for those who believe they may still be subject to federal gift or state taxes.
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Charitable Remainder Trust
This is an irrevocable trust that features income based on the value of the
property given. The Trust pays a fixed income based on the value of assets
at the time the Charitable Remainder Annuity Trust is created, while the Charitable
Remainder Unitrust provides a fluctuating income based on a fixed percentage
of the Trust’s annual value.
When the Trust is created, capital gains tax can be avoided or postponed, and
an income tax deduction is available for a portion of the value of the property. Income
from the Charitable Remainder Trust may be taxed favorably under lower capital
gains tax rates. There can also be estate tax benefits.
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Creative Gifts Through Retirement Plans
Whether you participate in a company pension plan or fund you have established
such as an Individual Retirement Account (IRA), you may accumulate funds beyond
your needs for comfortable support of yourself and loved ones.
In such a case, it may be very easy and convenient to make a gift from such
accounts to Sherman College to perpetuate work you consider vital for the well
being of future generations.
It can be satisfying to know that the funds you carefully saved over a lifetime
may ultimately be put to good use now or as part of a prudent estate plan.
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Gift Annuity
In the case of a charitable Gift Annuity, you make a gift to Sherman College
and receive fixed annual payments for life. The size of the payments is
based on the ages(s) of payment recipient(s), when the gift is made; the older
the recipient(s), the larger the payments.
You are allowed a tax deduction for a portion of the amount transferred. For
a period of years, only part of the payments will be taxed as income. If
stocks or other property that has risen in value is given for a Gift Annuity
that pays income to you and/or your spouse, the realized capital gains can generally
be reported at what may be more favorable capital gains tax rates over a period
of time. The donor and/or a spouse are the only payment beneficiaries,
the amount used to fund a Gift Annuity is general not subject to estate taxes
that might otherwise be due.
The agreement itself can easily be completed by mail.
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Gifts by Will
Gifts through wills have proven to be a convenient way for a number of individuals to make gifts as part of their long range financial plans. Through a well planned will, it is possible to make gifts for charitable purposes in the form of a special amount, a particular property, a percentage of the estate, or all or a portion of the residue, or “what’s left” after providing for other heirs. Planning charitable gifts via the will makes it possible for donors to maintain complete control over assets during their lifetime, while enjoying estate tax savings for amounts transferred at death.
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Gifts of Appreciated Property
When stocks, bonds, mutual funds, real estate, and other appreciated assets
are sold, tax is due on any capital gain.
One of the only ways to avoid or delay the capital gains tax is to make a charitable
gift of the property. When you give appreciated property that has been
held long-term (more than 12 months), you may take a deduction based on the
current value of the property rather than just its cost. It is usually
best to donate property that would be subject to the highest rate of tax if
sold.
The combined benefits of bypassing tax on the capital gain, receiving an income
tax deduction, and making a charitable gift can be gratifying indeed.
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Life Insurance
Life Insurance needs change as life progresses. Children become self-sufficient
and investments may provide unexpected income and security. As a result,
not all Life Insurance coverage may be needed for the reason it was initially
purchased.
Also, because federal law now exempts many states from taxation, Life Insurance
purchased to cover estate taxes may be “obsolete.”
Another way to make a gift of insurance is to purchase a new policy, naming
Sherman College as beneficiary. You can ensure a gift which may ultimately
be much larger than its cost.
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Increasing your retirement income
Many of the plans described here can be a welcome addition to your retirement
plans. If you have property that has increased in value but yields little
income, using it to fund a charitable gift plan that features income benefits
can help your assets do “double duty.”
The payments you receive from the gift plan will generally be based on the full
value of your property, not just what would be left after you paid tax on your
gain if you sold the property. You will also enjoy tax savings from the
deduction you receive when you create the plan. This amount can be invested
for greater income.
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Disclaimer Statement
Sherman College is not engaged in rendering legal or tax advisory service. For advice and assistance in specific cases, the services of an attorney or other professional advisors should be obtained. The purpose of this information is to provide accurate and authoritative information of a general character only. Watch for tax revisions. State laws govern wills, trusts, and charitable gifts made in contractual agreement. Advice from legal counsel should be sought when considering these types of gifts.
Institutional Advancement
