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 "Planned
Giving" is the name commonly associated with estate planning
techniques that provide a gift for a charitable organization.
Including Prescott College in your Planned Giving program
is more than merely writing a check to the College. A Planned
Giving program also includes the careful and thoughtful creation
of legal documents, all designed to accomplish several major
goals that can be specifically designed to:
- Make a positive impact on the financial stability of Prescott
College
- Honor the memory of a loved one
- Achieve a charitable income tax deduction
- Obtain federal estate tax savings
There are many different
techniques for planned giving. The most common methods are
outlined below:
Gifts of
Bequest by Will
By including Prescott College in your will, you can help to
enhance the College's endowment or support projects that are
especially interesting to you. A bequest by will to Prescott
College may help you avoid estate taxes. Estates in excess
of the gift and estate tax credit as adjusted each year are
subject to federal estate taxation at a rate of 37 percent
or higher. The marginal rate can be as high as 60 percent
for especially large estates.
A bequest to Prescott
College can be included in the body of your will or in a codicil.
You may state that all, or a percentage, of your estate be
given to Prescott College after specific amounts are distributed
to your beneficiaries. Or, you may designate that a specific
dollar amount, securities, or other assets be given to Prescott
College.
Donors who wish
to include Prescott College in a will are encouraged to consult
with a professional advisor to make certain the bequest meets
your stated desires. If you designate Prescott College in
your will, the Development Office would be grateful to receive
a copy of the portion of the will or living trust that remembers
Prescott College to enable us to assist your executor or trustee
in settling your estate.
Gifts That
Provide Income to the Donor or Another Beneficiary
There are several ways you can make a significant gift to
Prescott College without altering your standard of living,
depleting hard-earned savings, or providing for a loved one.
Life Income Gifts may provide you with several benefits, including:
- Income payment for your life, the life of your spouse,
or other loved ones
- An income tax deduction
- Elimination of capital gains tax on appreciated property
- Professional management and potential investment diversification
- Reduction of estate taxes and probate costs
- Knowledge that you are helping ensure Prescott College's
future
With a Gift
Annuity, you and/or a beneficiary receive a guaranteed
income for the remainder of your lives. Your income tax deduction
is based primarily on the amount of your gift, the ages of
the beneficiaries, and the income rate. A portion of the payments
is usually tax-free for several years and a portion is treated
as ordinary income. By funding your annuity with appreciated
securities, you may increase your after-tax income. The minimum
age requirement to establish a gift annuity is 50.
With Deferred-Payment
Gift Annuity, payments may begin at retirement or
at another specified age, but the charitable deduction is
immediate. This type of deferred gift might be especially
attractive to younger alumni who have sufficient current income,
yet would like to supplement their tax-sheltered pension or
profit-sharing plan. The rate of return will be affected by
the length of the deferral period during which income is accumulating.
A Charitable
Remainder Annuity Trust may be established by irrevocably
transferring cash, securities, or other property to a trust,
which then pays a fixed dollar amount to you or other named
beneficiaries, either for life and/or for a specific period
of time which may not exceed 20 years. Because the payments
do not vary, no matter what the earnings or valuation of the
trust, an annuity trust can be appealing to persons who desire
security of income.
A Charitable
Remainder Unitrust may be established by irrevocably
transferring assets (cash, securities, property) to a trust,
which then pays an income to you or other beneficiaries for
your lives or for a specific period for up to 20 years. The
annual income payment is determined by multiplying a stated
percentage by the net fair market value of the trust assets
as revalued each year.
Upon the death of the last beneficiary, or at the end of the
established time, the trust assets are then available for
use by Prescott College.
A Charitable
Lead Trust is the converse of a charitable remainder
trust in that Prescott College receives income for a period
of years. After the term is over, the principal is returned
to you or passed on to your designated beneficiaries. A lead
trust is especially advantageous if you want to transfer assets
to heirs with a minimum of transfer taxes. There is no limit
to the number of years the trust may continue or to the amount
that can be paid to Prescott College. The College's income
payment must be in the form of either a guaranteed annuity
or a fixed percent of the net fair market value of the trust
assets, determined annually.
Consult your attorney or financial
advisor! Your attorney or tax accountant can advise you of
the full benefits of supporting Prescott College with a planned
gift. If you wish, the Prescott
College Development Office would be pleased to give you
the name of Prescott College alumni who work as attorneys
and/or accountants who can advise you about the benefits of
supporting Prescott College.
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