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» Bequests » Life Insurance » Retirement Assets » Charitable Lead Trust » Retained Life Estate Income Producing Gifts: » Gift Annuity » Remainder Annuity Trust » Remainder Unitrust |
All planned gifts created by a donor and communicated to the University through the Office of University Advancement will entitle the donor to be listed in the Heritage Society. The Heritage Society is our way to acknowledge the generosity and consideration of our alumni and friends who are helping to ensure a strong future for Avila University. | ||||
Bequests After providing for your loved ones, a provision in your will or living trust naming Avila as a beneficiary can give you the feeling of satisfaction of knowing that your future gift will help the University for generations to come. Charitable bequests can include cash, securities, real estate or other property, and may be identified specifically, either as a percentage or an amount, or as that part of your estate that remains after making specific bequests. ESTATE TAX SAVINGS Making a new will or living trust, or changing an existing one, should be done with the assistance of your attorney. The desired wording would be to leave your gift to “Avila University”. If you have already created a bequest for Avila in your will or are in the process of having it done, please notify the Office of University Advancement so that proper arrangements can be put in place for your future gift and that all instructions are clearly indicated. Life Insurance An easy tool for donors to use to create a legacy at Avila is life insurance. The University encourages potential donors to name Avila as the owner and beneficiary of all or a portion of the benefits of a life insurance policy. Depending on the status of the policy, especially whether it is paid-up, the gift can entitle the donor to income tax savings. The gift can also possibly cut estate taxes as that portion of the life insurance which is designated to Avila will not count against your estate. But most important is the feeling of satisfaction of creating a gift which will help Avila and its students. If you have already arranged such a gift, or are interested in creating a gift of life insurance, please contact your personal agent as well as the Office of University Advancement to make sure that instructions associated with your gift can be put into place. Back to topRetirement Assets Making a charitable gift of a retirement plan such as an IRA, a 401(k) or a 403(b) can benefit you and your heirs, as well as the University. By naming Avila as the final (or contingent) beneficiary of a qualified retirement account, you can retain full control of the funds while you are alive and generate significant tax savings for your heirs. Not only will a gift of a qualified retirement account save against estate taxes, which can reach 55%, but your heirs will not be required to pay income taxes on the transfer of the retirement plan. The total tax savings can be as much as 80% of the value of the qualified retirement plan. To be sure that all pertinent regulations are followed, it is important to obtain the assistance of your plan administrator. If you or your administrator have any questions, please contact the Office of University Advancement. Charitable Lead Trust A charitable lead trust is a trust agreement that provides an income payment to the University at a donor-designated rate for the donor’s life or for a pre-established number of years (typically 5-20). At the end of the trust, the remaining principal is returned to the donor or another family member as designated. The income that is generated to benefit Avila may either be a fixed amount (annuity trust) or a fixed percentage of the annual value of the trust (unitrust). At the time the trust begins, you or your estate will receive a charitable gift or estate tax deduction for the percentage payable to Avila. A charitable lead trust can be especially valuable in estate planning because the estate tax and gift tax savings can be significant. It may even have additional value to your family if the assets are likely to appreciate substantially over the life of the trust. A variety of assets can be used to fund a charitable lead trust as well, leaving you with control of the assets you need the most. You are encouraged to contact your personal advisor and the Office of University Advancement to learn more about charitable lead trusts.
Avila will receive $28,000 annually for 10 years which can be used for a specific purpose designated by the donor. By funding the lead trust, the donor is able to pass on $457,946 to the family, as opposed to retaining the asset and paying estate taxes, which would only allow $369,429 to go to the family. Back to top Retained Life Estate A donor that owns a home, vacation home or a farm including a residence can donate the property to the University, yet retain the right to use and enjoy the property for as long as they wish. The donor will still be responsible for maintenance, taxes and insurance on the property as long as they occupy it but can take advantage of the significant income tax savings potentially generated by a gift of a retained life estate. Charitable Gift Annuity A charitable gift annuity (CGA) is a wonderful tool for donors, allowing you to meet your own financial needs as well as your philanthropic goals. A CGA is a contract between you as the donor and the University that provides a guaranteed lifetime income for you and/or a beneficiary. An annuity may only be funded with a gift of cash or securities. Some of the benefits include:
Gift Model
Charitable Remainder Annuity Trust A charitable remainder annuity trust is an irrevocable trust that provides a fixed income to the designated beneficiaries for life, or a term of years, after which the remainder of the trust is distributed to the University. A charitable remainder annuity trust is particularly beneficial if you want to make a substantial gift to Avila while:
Gift Model
Based on the above scenario, the donors will receive $12,000 annually for the rest of their lives. They will also receive an immediate income tax deduction of $81,757. Assuming a 28% federal income tax rate for the donors, they will receive a tax savings of $22,892. The donors will also bypass capital gains tax of $27,000 that otherwise would have been payable immediately upon the sale of the securities. Back to topCharitable Remainder Unitrust A charitable remainder unitrust is an irrevocable trust that provides a variable stream of income to the designated beneficiaries for life, or a term of years not to exceed 20, after which the remainder of the trust is distributed to the University. The variable stream of income is based on the percentage return selected by the donor based on the value of the donated asset, revalued each year. A charitable remainder unitrust is particularly beneficial if you want to make a substantial gift to Avila while:
A CRUT can be established with as little as $50,000 and can be funded through a gift of cash, securities, real estate or other assets. There are four varieties of charitable remainder unitrusts to choose from, depending on your situation, so please contact the Office of University Advancement for options on this type of gift. Gift Model
Based on the above scenario, the donors will receive $12,000 in income the first year and 6% of the annual value of the trust thereafter. They will also receive an immediate income tax deduction of $38,702. Assuming a 28% federal income tax rate for the donors, they will receive a tax savings of $10,837. The donors will also bypass capital gains tax of more than $18,000 that otherwise would have been payable immediately upon the sale of the securities. Back to top |
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