At JWU, we recognize the enduring benefits of a planned gift. By choosing to make a planned gift, you ensure that the impact of your generosity will reach far beyond your lifetime. Planned gifts also offer a variety of tax benefits and can make estate planning easier. We’ll work closely with you to determine the gift structure that is most appropriate for your goals—and that will have lasting value for the university and its students.
The most common types of planned giving vehicles include:
You can choose to create a lasting legacy for JWU by naming the university in your will. Bequest options include:
- A specific bequest of cash or real property, designating a set dollar amount or specific piece of property
- A proportionate bequest representing a percentage of your estate
- A contingent bequest, should one or more of your primary beneficiaries not survive you
- A residual bequest, which distributes the balance of your estate after other specific bequests have been distributed
Life insurance policy gifts
A life insurance policy that is no longer essential or valuable to you might be of great value to JWU. And in most cases, when you make the university the irrevocable beneficiary of the policy, you will receive an immediate income tax deduction (the amount depends upon the type of policy contributed).
Gifts of retirement plan assets
You can make JWU the beneficiary of your pension, IRA, Keogh, 403(b), 401(k), or other retirement plan. Since the tax laws regarding retirement plans are complex, consider talking with your financial advisor about the best way to make your gift.
Gifts that provide income
A life income gift provides lifelong income benefits for yourself or another beneficiary (you or the beneficiary must be at least 50 years old), and the gift assets will go to JWU. Setting up an irrevocable life income gift entitles you to an income tax deduction today and ensures that you or your beneficiary has income for life.
Charitable remainder trusts
To set up a charitable remainder trust that benefits JWU, you would place assets into a trust and direct that you (or your designee) receive a specified amount or rate of income for life. Upon your death (or the death of your designee), the trust’s assets would automatically pass to JWU as a charitable beneficiary.
These trusts take many forms, but all are based on one concept. As a type of life income gift, the trust pays income to one or more non-charitable beneficiaries for a period of time and then allows for the transfer of property to a charity. Tax advantages for a donor include an immediate tax deduction for the current value of the remainder committed to charity and avoidance of capital gains taxes when the appreciated assets are used to fund the trust.
Charitable lead trusts
Through a charitable lead trust, you can make charitable donations now and pass assets to heirs in the future. A lead trust benefiting JWU would pay a fixed dollar amount or percentage of its assets each year to the university. When the trust terminates, the assets would pass to your heirs. While such a trust can be created for any length of time, the longer a charitable trust lasts, the greater the resulting gift and estate tax savings will be.
Please always discuss these type of gifts with your financial advisor. For more information about these opportunities, please contact:
University Advancement Services Management