Types of Planned Gifts
Where there's a Will, there's a Way. One of the simplest and most meaningful types of estate gift, is a bequest. This type of gift will have a direct impact on the students and programs of the University, while having no impact on your current assets. A gift in the future, planned for and discussed today, ensures that the University can carry out your intentions. By designating the University as one of your beneficiaries, either through a percentage or specific dollar amount, you may restrict your gift for a specific purpose or allow it to be used for unrestricted endowment purposes.
When creating or redrafting your will, you can designate that the University receive a portion for use in a variety of manners- scholarships, equipment purchases, facility renovation, unrestricted use, or a number of other possible opportunities. It is important that you inform the University of your intention so we can be certain to carry out your wishes. The appropriate language to use in designating the University as beneficiary of an unrestricted gift follows:
"I give, devise, and bequeath to Millersville University (or Foundation), Millersville, PA, ______ percent of all the rest, residue, and remainder of my estate (or _______ dollars, property, securities, etc. described below) wheresoever located to be used for the benefit of Millersville University in such manner as the President thereof may direct." The language for a restricted gift should include additional information about the final intent and use of the funds. If a restricted gift is being made, it is extremely important that you share this with the University so appropriate action can be taken to establish an endowment or create a fund that can carry out your wishes.
Do you have money saved in an employee retirement plan, IRA or tax-sheltered annuity? Each of these retirement plan assets contains income that has yet to be taxed. Your beneficiaries will owe the income tax at your death, totaling up to 35 percent, which may be reason enough to consider giving your loved ones less heavily taxed assets and leaving your retirement plan assets to charity instead.
When you own a life insurance policy with accumulated cash value, you're essentially sitting on a pile of money. When the original purpose for the protection no longer applies—such as to educate children now grown or to provide financial security for a spouse now deceased—your life insurance can be redirected to help support a worthwhile cause. One option is simply to name Millersville University as the primary beneficiary. (Naming us as beneficiary while you retain ownership of the policy, however, does not qualify you for an income tax deduction.) Or, you can name us as the beneficiary and also assign us ownership of the policy as a current charitable gift.
If you have owned securities for a long time, a charitable gift using these assets may be advantageous. You may be able to avoid or reduce capital gains tax while realizing a significant charitable contribution based on the current market value with an outright gift.
Charitable Remainder Trust (CRT)
A Charitable Trust is created when assets are transferred to a trust and payments are received for a period of years or for the individuals’ lives. Once you have made your gift, the trust pays you income for the rest of your life, or the life of another, if you desire. When you contribute assets to a trust, you determine what percentage of the trust’s fair market value you would like to receive as income. There are several options in establishing a trust: Annuity Trust (CRAT): payment amounts are agreed upon at the time the trust is created and do not vary from year to year. Upon the death of the last beneficiary, or at the end of the term of years, the trust terminates and the trust assets are transferred to the Foundation. Uni-trust (CRUT): trust assets are valued annually and an agreed upon percentage payment is calculated. Upon the death of the last beneficiary, or at the end of the term of years, the trust terminates and the trust assets are transferred to the Foundation.
Charitable Lead Trust (CLT)
A Charitable Lead Trust (CLT) is created when assets are transferred to a trust and an income to the University is made for a period of time. At the end of that period of time or at a predetermined life changing event, the assets are passed to family members.
A great opportunity to support the students by making a gift to the University today and receiving income for life. The Charitable Gift Annuity (CGA) permits you to take a current charitable deduction based upon a percentage of the gift you made and then provides you with consistent income at a specific percentage amount. Your ultimate gift for the students can be designated toward an area that has meaning for you, or allow it to be used where it is most needed.
You may also make a gift of your personal residence and reserve the right to live in the house for your life (and, if applicable, the life of your surviving spouse). Through such a life estate arrangement, you would continue to be responsible for the real estate taxes, insurance and upkeep but be entitled to a current income tax deduction for a portion of the current value of the property