Planned Giving
Planned gifts include bequests, gifts of life insurance and retirement plans, and other contributions made through a donor's estate. Many planned giving options allow donors and their loved ones to receive income during their lifetimes from assets that will eventually benefit the Center for Politics. These life-income gifts deserve special consideration when making financial and estate plans. For more information, please call (800) 688-9882.
Wills, Living Trusts and Retirement Plans
Gift Annuity
Charitable Remainders
Charitable Leads
Life Insurance
Wills, Living Trusts and Retirement Plans
Through a will, living trust, or retirement plan, individuals can make gifts to the Center for Politics that are larger than anything they could imagine in their lifetimes. The process is very simple for most individuals. Gifts through wills, living trusts, or retirement plans offer a number of advantages:
- They are revocable by the donor if circumstances change.
- They realize the donor's vision for the future in a tangible way without an uncomfortable financial burden during his or her lifetime.
- Individuals may choose to designate their support to any program at the Center.
- For individuals who wish to support the Center at levels that will produce an endowment in perpetuity, separate endowment agreements can be created to spell out the donor's wishes.
- They may reduce estate tax for the surviving family members.
Gift Annuities
A gift annuity is a simple contract under which the donor transfers assets to The Center for Politics, which in return provides life income to the donor and up to one other family member or loved one. There are two types of gift annuities: charitable gift annuities and deferred gift annuities.
A charitable gift annuity may be established with a small investment ($5,000 minimum). It can be funded with either appreciated securities or cash. The donor receives an immediate income tax deduction and may also bypass or defer capital gains tax. In addition, a portion of the income may be tax-free.
A deferred gift annuity has the same benefits and requirements as a charitable gift annuity. The only difference is that a donor selects a future date (one year or more) to begin income payments. In addition to an immediate tax deduction, benefits include increased income and a tax deduction due to deferral of income.
Due to varying restrictions, the Center for Politics is not able to offer gift annuities in all states. Please consult the Office of Planned Giving for a list of states where this option is available. Call (434) 924-7306 or (800) 688-9882.
Charitable Remainder Trusts
A charitable remainder trust (CRT) is a vehicle that allows you to transfer assets to a trust, receive income from that trust until a specified time, at which point the "remainder" (what's left over) goes to the Center for Politics. CRTs can be created during your lifetime or through your will. A CRT offers the following benefits:
- It removes the assets from your estate, reducing or eliminating your estate taxes.
- Because CRTs are irrevocable, you receive an income tax deduction for the "remainder" value of the trust as calculated by an IRS formula.
- You receive income during your lifetime. Or, with a testamentary trust, your beneficiaries will receive income for a set period of time.
- Avoid capital gains taxes. Because you are giving to a charity, you will not pay capital gains on the sale of your appreciated asset(s), no matter how low your cost basis.
- You are providing a gift to the Center for Politics that you may not be able to provide through other means.
Charitable Lead Trusts
In a charitable lead trust, the Center for Politcs "leads" by receiving payments first with the remainder passing to your named beneficiaries after a set period of time. Many donors like this arrangement, as it keeps assets in the family and gives immediate help for the Center's funding needs. Like any other trust, a charitable lead trust can be created while you're alive or through your will.
Life Insurance Gifts
A new or existing life insurance policy is a low-cost way to make a significant gift to the University. You may also receive a tax deduction for your premium payments. Please note that U.Va. must be owner and beneficiary of the policy for a gift to be eligible for tax benefits. For more details, consult one of U.Va.'s planned giving officers.
Ways to Give
_____________________________________________
Copyright © 2003 U.Va. Center for Politics. All rights reserved.
|
