Many alumni and friends have chosen to make a significant gift to the seminary and simultaneously accomplish other financial planning objectives through estate gifts, life-income plans and other planned gifts. Planned giving provides many creative strategies that may allow you to make a gift beyond your expectations while also gaining tax advantages and other benefits. Depending on your own individual circumstances, some of the following options may be appropriate for you to consider.
Giving through your estate plan may make it possible to make a very significant contribution that also generates a charitable estate-tax deduction and substantial tax savings. You may direct all or a portion of your estate to the seminary. Those assets, regardless of their value, are not subject to estate taxes. The Office of Institutional Advancement is able to provide you and your planner or counselor specific language for your will, trust or beneficiary form.
You may name Eden as a beneficiary of your retirement plan, life insurance policy or bank or brokerage account. You may designate the seminary as beneficiary by completing a Change of Beneficiary form and you retain the right to change or amend the beneficiary designation. Distributions to charities are not subject to tax and distributions made through beneficiary designations are not subject to probate.
There are several ways to make a gift of life insurance: You can name Eden as a partial or full beneficiary of a life insurance policy. You may transfer ownership of a paid-up life insurance policy (one on which you no longer are required to make premium payments) as an irrevocable gift to the seminary. You also may give the seminary a life insurance policy on which premiums are still being paid. You may make a gift of life insurance by taking out a new insurance policy and naming Eden as owner at the time the policy is issued.
Qualified Retirement Plans (QRP)
Gifting a distribution through your qualified retirement plan (QRP) at your passing is one of the most tax-efficient ways to give. Your QRP, such as an IRA, 401(k), or 403(b) may be your largest asset, one that has grown appreciably through the years. You may want to leave these funds to your family or other heirs after your death; however, distributions from retirement plans given to individuals other than your spouse may be subject to both income and estate taxes that may exceed 50%.
You can avoid or reduce this loss to taxes by naming the seminary as a death beneficiary of the QRP. QRP distributions received by the seminary are not subject to income or estate tax. You may also designate the assets of a QRP in whole or in part to a charitable remainder trust or charitable gift annuity with income paid to beneficiaries such as family and friends. This will reduce tax losses due to income and estate taxes, provide income for life or a specified number of years, and provide a significant gift to the seminary when the trust ends.
Transfer of Bank and Brokerage Accounts
In many cases, it is possible to designate the seminary as beneficiary on your bank accounts and other financial investments. By completing a Payable on Death or Transfer on Death designation with your financial institution(s), you retain the right to change the beneficiary on the accounts as long as you own them. After your death, the funds for the designated accounts are not subject to estate taxes and will pass outside of probate and transfer directly to the seminary.
Make a Gift and Receive Income
Life income plans such as charitable gift annuities or charitable trusts allow you to provide for your personal financial needs or the needs of family members and loved ones while making a significant gift to Eden. Life Income Plans offer several advantages, such as payments for you and/or other individuals such as family, charitable income tax deduction for a portion of your gift, capital gain tax savings when you use appreciated assets such as stock or real estate, and estate tax savings. Our staff would be glad to discuss with you the advantages of various forms of life income plans, such as
• Charitable Gift Annuities
• Deferred Payment Gift Annuities
• Charitable Remainder Unitrusts
• Charitable Remainder Annuity Trusts
• Establishing a Life Income Plan through Your Estate
• Gifts of Appreciated Assets
Charitable Lead Trusts
You may establish a charitable lead trust through a donation while you are living or through your estate plan. Designated assets are held in trust and generate regular payments to the seminary for a time period you specify. After the time period has elapsed, you or your heirs receive the trust principal. Through a charitable lead trust you may be able to transfer the assets to family members with reduced gift and estate taxes while also providing support for the seminary.Charitable lead trusts work extremely well when interest rates are low and can enable donors with philanthropic interests and estate planning goals to accomplish both in a very tax-efficient manner.
For information about gift planning at Eden please Stella Schoen, Director of Planned Giving at 314-918-2569.