What is a planned gift?
It is a gift for which arrangements are made now, but the final transfer of assets does not occur until a later date, usually at the time of the donor’s death. Planned gifts include bequests, charitable gift annuities, paid-up life insurance policies, gifts of real estate, and charitable remainder trusts. All individuals making planned gifts to Benedictine University at Springfield automatically become members of our Ursula Laurus Society.
Inclusion of a bequest for Benedictine University at Springfield in your will is a very generous way to provide for the future of Benedictine University at Springfield. If you decide to include Benedictine University at Springfield in your will, if you do not mind, please let us know in what way you have chosen to do so. By informing us of this, you help us to plan as well.
Gifts of paid-up life insurance policies are greatly appreciated. People often donate such policies when they discover that their personal situations no longer require the policies. Others purchase such policies because it enables them to provide a larger gift in the future than what they are able to afford today. Under either circumstance, the donor receives an immediate tax deduction and the personal satisfaction of donating to a terrific cause.
Charitable Remainder Trusts / Annuities / Securities
A charitable gift annuity provides the donor with a source of guaranteed annual income throughout the donor’s lifetime as well as an immediate tax deduction. The donor provides Benedictine University at Springfield with a gift of cash or securities. The amount of income the donor receives depends upon the value of the donation given and the donor’s projected lifespan, based on actuarial tables. The annual income received by the donor is taxed at less than the ordinary income tax rate. A gift of appreciated securities is especially beneficial for the donor in that there are capital gains tax benefits.
Charitable remainder trusts (CRTs) are similar to charitable gift annuities. However, with CRTs, the donor is given greater flexibility as to the choice of the amount of the annual income to be received, whereas the gift annuity is a predetermined amount. Also, a CRT requires the formation of a trust, which needs the assistance of an attorney to create. A gift annuity is a simple contract; therefore, requiring no attorney involvement.