Planned gifts result from thoughtful consideration that incorporates a donor’s charitable gift into his or her overall financial, tax and estate planning objectives with the outcomes being maximum benefits for both the donor and Brebeuf Jesuit. Donor’s assets, rather than income, are typically used to make planned gifts which can be outright gifts, deferred gifts or a combination of the two.
Bequest in Will
The most popular method of deferred giving is to include a bequest in the will. Bequests can be for general use or designated to support a particular program or scholarship. The estate receives a deduction for the bequest amount, thereby reducing the value of the estate and possibly reducing or eliminating the estate tax. Our office can provide you with sample language to include in your will.
Retirement Plan Assets
By naming Brebeuf Jesuit as a beneficiary of your retirement plan (e.g. 401K or IRA), you reduce the federal and state tax burden for your heirs while also making an investment in the current and future students at Brebeuf. You may designate Brebeuf as the primary beneficiary for a percentage or specific amount, or make us a contingent beneficiary so we receive the balance of your plan only if your primary beneficiary doesn’t survive you. Simply contact your plan administrator with your updated beneficiary designation.
Life insurance can be an easy and flexible way to make an important gift to Brebeuf. Whether it is an old policy that has outlived its original purpose (such as for a spouse who no longer needs it or a child who is financially independent or to protect a business that no longer exists) or a new policy purchased specifically to benefit Brebeuf, a gift of life insurance can allow you to leave a much larger gift than may have been possible in your lifetime.
Charitable Gift Annuity
A charitable gift annuity is a contract between you and Brebeuf Jesuit, and one of the simplest ways to make a gift. You transfer cash or marketable securities to Brebeuf and we agree to pay a fixed quarterly or annual amount to you and/or another beneficiary. The annuity rates of return are based on the beneficiary’s age. You can claim a current charitable deduction for a portion of the transfer and a portion of each annuity payment is treated as a tax-free return of principal. If the gift annuity is funded with long-term appreciated stock, then the capital gains are spread out over a number of years.
Deferred Gift Annuity
A deferred gift annuity is similar to the charitable gift annuity except that the charity agrees to pay the annuity starting at a future date. You can take an immediate charitable deduction for the gift portion of the transfer. When the payments begin at a later date, a portion of each payment will be tax-free.
Charitable Remainder Trust
A charitable remainder trust is an irrevocable trust. You transfer property to the trust and the beneficiaries receive regular payments for a period of years or for life. When contributing highly appreciated stocks or property, capital gains taxes are avoided. You receive an immediate income tax charitable deduction for the portion of the transfer considered a gift to Brebeuf. If a unitrust is created, you will receive a fixed percentage of the trust assets as valued annually. If an annuity trust is created, then the amount is fixed based on the initial fair market value of the trust (cannot be less than 5%). Trusts can be established with hard to value and illiquid assets, such as real estate, closely held stock and partnership interests.
Charitable Lead Trust
A charitable lead trust provides payments to Brebeuf for a term of years. After the term expires, the property passes to the donor or to non-charitable beneficiaries. A lead trust is an excellent vehicle for transferring assets to family members at a reduced tax cost. For more information on Planned Giving at Brebeuf Jesuit, please contact Jamie Elkins, Senior Vice President, at email@example.com or 317.524.7093.