Living Trusts Many people use a revocable living trust to manage their assets. The trust may also continue after death, distributing assets and managing them for loved ones. You can also make gifts to Cabrini with a living trust. You can arrange for a yearly charitable gift to Cabrini out of the earnings of the trust. And, upon your death, you may simply want to bequeath all or part of the remaining assets in the trust as a charitable gift to the College as well.
Charitable Lead Trusts The Charitable Lead Trust is essentially the opposite of the remainder trusts. Instead of you, the donor, receiving income back from a trust, in a lead trust, the College receives the income interest for a specified number of years. At the end of the trust, the remaining principal is returned to the donor or, more commonly, another family member.
The income that is paid to Cabrini may be either a fixed amount (an annuity trust) or a fixed percentage of the annual value of the trust (a unitrust). At the time the trust begins, you or your estate will receive a charitable gift or estate tax deduction for the percentage payable to Cabrini.
A lead trust can be especially valuable in estate planning, because although income tax benefits of such a trust are often minimal, the estate and gift tax savings may be significant. Therefore, a charitable lead trust is often set up to begin upon the death of the donor. It may have extra value to family members when the assets are likely to appreciate substantially in value over the life of the trust.
Tangible Personal Property Over the years, many individuals have given sculptures, paintings, book collections and other types of personal property to Cabrini.
A gift of this nature involves various regulations. The College can assist you and your attorney or other professional advisor, if you have specific questions or wish to discuss your particular situation in detail.
Often people find that they have more life insurance than they need. For example, their children may be grown and life insurance that was intended to provide education funds is no longer needed. A gift of a life insurance policy, one that is paid up or one with premiums still due, is a good charitable gift. The gift can easily be made by naming Cabrini as both the beneficiary and owner of the policy.
You may even want to purchase a new policy to give to the College. Normally, your charitable deduction will be approximately the cash value of the insurance policy at the time of the gift.
Appreciated real estate may be one of the best gifts that can be made to the College. Often, however, your return from the property is small and operating costs, such as taxes and maintenance, continue to rise. Should you sell the appreciated real estate, you will have to pay capital gains tax on the appreciated amount, considerably reducing your net gain from the sale. If, however, you make a gift of the real estate to Cabrini, you may be able to deduct the full market value of the property, including all appreciation.
Please note that there are some legal requirements that you will need to meet in order to make a charitable gift of real estate. We will be happy to assist you and your attorney of other professional advisor to comply with these requirements.
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