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.

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.

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magnoliaInstitutional Advancement

Marggi Roldan

Marggi Roldan
Director of Development &
Alumni Relations
mroldan@sherman.edu
800-849-8771 x. 277
864-578-8770 x. 277

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