Planned Gift Options
Charitable Gift Annuities
Should you want to make a contribution to National-Louis now in return for the university’s promise to pay you a fixed income amount for life to you and/or another person it can be accomplished with a charitable annuity.
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Deferred Charitable Gift Annuities
With a Deferred Gift Annuity, your gift is made now, but the first payment to you is made at a later date. By deferring the payment, it allows you to receive a higher payment once the annuity period begins. It also provides a greater immediate charitable income tax deduction. Such a gift vehicle is attractive to the person who makes maximum allowable contributions to employer-sponsored retirement plans and wants greater income following their retirement.
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Charitable Remainder Trusts
A Charitable Remainder Trust or CRT can provide for flexibility and for the transfer of assets into a separately managed trust that will provide an income stream to your beneficiaries for life. A CRT, which is irrevocable, requires a minimum gift of $100,000 in cash or publicly traded securities. The trust can run for the lifetime(s) of the income beneficiaries, or for period not to exceed 20 years. After the trust terminates, its remaining assets will be transferred to the university. The CRT provides for some attractive tax benefits. By funding the trust with appreciated property, the donor limits his or her exposure to capital gains tax which might be present should the donor sell the asset(s).
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There are two different types of Charitable Remainder Trusts which can be effectively implemented into your estate planning.
Charitable Remainder Annuity Trust
Should you want to receive a fixed percentage income amount annually for the rest of your life you can consider a Charitable Remainder Annuity Trust. This type of trust allows the donor to claim an immediate charitable deduction for the portion of the asset transfer that represents the charitable gift element. Any capital gains recognition on gifts of appreciated property is either reduced or deferred. The donor may not add further amounts to increase the original gift. However, the donor may establish separate annuity trusts.
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Charitable Remainder Unitrust
You, the donor, will receive a variable income amount annually after gifting over assets to fund such a trust. The unitrust pays out a percentage of the principal and is subject to changing market valuations. If the assets increase in value, then the annual payment will increase. Annual payment amounts will fluctuate based on market changes. Unitrusts made be added to at any time during the life of the instrument.
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Charitable Lead Trust
Some donors who wish to maximize the amount of assets transferred to heirs while minimizing gift or estate tax liability while simultaneously supporting National-Louis may want to consider a Charitable Lead Trust. The trust’s payments are distributed to National-Louis throughout the duration of the irrevocable trust as it is a gift of income to the university. You place assets in a charitable lead trust and it distributes income to National-Louis for a term of years. At the conclusion of that term, the trust assets are then distributed to your heirs or other named beneficiaries. The income received by the university is to be used for the purpose that you specify. This can be accomplished as either a lifetime gift or as a testamentary gift that would provide similar benefits to your estate that you would enjoy during your lifetime. Such a gift enables you to make a significant contribution to the university as well as realizing a substantial tax savings, including reducing or eliminating the amount of estate and gift tax exposure by deferring the transfer of assets to later generations. The Charitable Lead Trust is a significantly complex estate planning tool.
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Estate Bequests
Many alumnus’ may consider that they can accomplish their giving to National-Louis University through their will. A bequest is a gift specified in a will or trust deferring such a gift after the life of the donor. This allows the donor to retain their assets under their control throughout their lifetime. The bequest through a will or a trust is a relatively simple and economical method to provide a gift to support National-Louis. Also, by implementing any of the following bequests you will qualify for a full charitable estate tax deduction.
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General bequest
Means that you simply leave a specified dollar amount to National-Louis.
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Specific bequest
Donors who leave a specific bequest to the university contribute a specific designated amount or asset from their estate. By designating a specific bequest you can donate a fixed percentage of your estate (its value may change over time) or contribute a specific dollar amount.
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Residual bequest
By electing a residual bequest National-Louis University receives all or a portion of the donor’s estate residue. After the donor’s specific bequests are satisfied the residual amount is then distributed to National-Louis University at the donor’s direction. Most donors feel comfortable gifting a percentage of the estate residue to National-Louis. Based upon the value of the estate, the donated portion remains constant even though the estate’s value fluctuates with market conditions and expenses.
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Life insurance
If you have a paid up life insurance policy that your family no longer needs, it may be used to make a gift to National-Louis. Simply transfer the policy’s ownership and make National-Louis the beneficiary. By doing this you will be allowed an immediate income tax deduction for that year based upon the cash surrender value of the policy.
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Appreciated Securities
By transferring appreciated securities to the university, you will receive an immediate charitable tax deduction for the full fair market value of the asset(s). You will also eliminate any capital gains tax liability on the appreciated value of the asset.
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