A- / A+

Gifts with Financial Benefits to You

Gifts with Financial Benefits to You

Charitable Gift Annuities

You can transfer money to a charitable gift annuity and receive income for life.

This plan allows you to give a substantial donation (our minimum is $10,000) to Benedictine College while receiving tax-favorable income for life. Interest rates on charitable gift annuities are usually more attractive than certificates of deposit (CDs) and other bank rates. Benefits include:

  • Very attractive rates of return.
  • Payments are made monthly.
  • Depending on your age, all or a portion of the income will be tax-free.
  • Immediate tax receipt for a portion of your gift.
  • The residual portion of the gift can be designated according to your wishes.
  • Your gift passes to the College outside of the estate process.

Here’s how it works: Say that Roger and Ellen, both 65 years old, want to make a legacy gift but also want to ensure they have income for their retirement. They establish a $25,000 charitable gift annuity with Benedictine College. Based on their ages, they will receive a payment rate of 5.1 percent, which means they will receive $1,275 each year for life. They are also eligible for a federal income tax deduction in the year of their gift. After their joint lifetime, Benedictine will use the remaining funds of the annuity to support students and the College’s programs.

Charitable gift annuities come in many forms — you can fund them with cash or with other assets; you can begin receiving payments now or defer them; and you can even have payments made to another individual for their life.

One of the most popular ways our supporters make their gift is by funding it with appreciated stock they have owned for over a year. In addition to receiving an immediate income tax deduction, they can avoid capital gains tax on a portion of the gift. This maximizes the gift’s potential and allows the supporter to use the rest of the gain over their lifetime.

As with all gift planning, you should consult with your tax advisor and lawyer to determine what planned gift strategy is best for your current tax situation and income requirements. Consulting estate-planning professionals will help ensure that your wishes to make a lasting impact will be fulfilled.

Charitable Remainder Trusts

You can earn income for yourself or a beneficiary while supporting Benedictine College to form students in the Benedictine tradition. A charitable remainder trust (CRT) enables you to preserve or improve your financial security and make a gift to the college.

You may realize a significant benefit by transferring property to a trust that will eventually be a charitable gift to Benedictine College. Benefits include:

  • Gift is made during your lifetime or created through your will.
  • Tax savings are realized with a charitable gift receipt.
  • May permit gifting over time.
  • Your gift is protected from challenge by other potential beneficiaries.
  • Could result in favourable tax treatment of certain capital gains properties.

Three ways you can receive payments with charitable remainder trusts:

  • A variable-income CRT (unitrust) pays out a percentage of trust assets, resulting in income payments that rise or fall depending on the annual value of the assets.
  • A fixed-income CRT (annuity trust) generates income that is determined at the outset and never varies.
  • A deferred CRT is a variation that accrues income for the future. This is a popular gift choice if you do not need additional income now, but want to have more in your later years with an income tax deduction now and tax-free growth while you wait.

As with all gift planning, you should consult with your tax advisor and lawyer to determine what planned gift strategy is best for your current tax situation and income requirements. Consulting estate-planning professionals will help ensure that your wishes to make a lasting impact will be fulfilled.

If you have any questions, please email Tim Andrews,Executive Director of Planned Giving, at tandrews@benedictine.eduor call him at 913-360-7363.

Gifts that Reduce Your Taxes

Many supporters of Benedictine College like you are looking for ways to make a difference for students and support programs they care about while reducing the amount of money that goes toward taxes. There are several ways you can reduce your taxes while helping educate students in the Benedictine tradition.

Retirement Plan Gift:

You can reduce your taxes by naming Benedictine College as a beneficiary of your retirement plan. A full 60 to 70% of your retirement assets may be taxed if you leave them to your heirs. Instead, you can leave your heirs assets like real estate and stock, and use retirement assets to create your legacy gift for Benedictine College, which is not taxed when receiving retirement assets.

Benefits:

  • Avoid potential estate tax on retirement assets.
  • Avoid income tax for your heirs on retirement assets funded on a pre-tax basis.
  • Receive potential estate tax savings from an estate tax deduction.

To name Benedictine College as a beneficiary of your retirement plan, contact your bank or insurance company to see whether a change of beneficiary form must be completed.

Life Insurance Plan Gift:

If you have a life insurance policy that has outlasted its original purpose, you can use it to reduce your taxes and create a legacy gift for Benedictine College.

Benefits:

  • Reduce your income taxes.
  • Receive additional tax deductions by making annual gifts so that we can pay the premiums if Benedictine College retains the policy to maturity.
  • See firsthand how your gift supports our work if Benedictine College cashes in the policy.
  • Further the work of Benedictine College. If we retain the policy to maturity, or you name us as a beneficiary, once the policy matures, the proceeds of your policy will be paid to Benedictine College.

Gifts of stock:

Stocks, bonds and mutual funds that have appreciated in value are among the best ways to ensure that Benedictine College is able to provide students, faculty and staff the resources they need. You may receive a charitable income tax deduction for the full market value of the stock and avoid paying the capital gains tax on any increase in the value of the stock.

Please contact Kelly Vowels, Vice President for Advancement, at 913.360.7418 or kvowels@benedictine.edu if you want to make an immediate impact by donating stocks or other appreciated assets.

Savings Bonds:

When you redeem savings bonds, you or the person you leave your bonds to will owe income tax on the appreciation. You can eliminate the income tax on bonds you own that have stopped earning interest and that you plan to redeem. Because Benedictine College is tax exempt, 100 percent of your gift of savings bonds will support our mission.

Benefits:

  • Reduce income tax.
  • Reduce income tax and estate taxes for your loved ones.
  • Create your lasting legacy with Benedictine College.

Charitable Lead Trust:

With this option, you can reduce or eliminate gift or estate taxes, transfer some of your assets to your heirs, and create your legacy with Benedictine College. You’ll receive a gift or estate tax deduction at the time of your gift, and after a period of time your heirs will receive the trust assets as well as any increase in value.

Benefits:

  • Reduce gift or estate taxes.
  • Transfer assets to your heirs at reduced or no cost.
  • The trust makes annual contributions to Benedictine College to help students year after year.
Back to Top