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Annuities and Trusts

  1. Charitable Gift Annuity - A charitable gift annuity is, essentially, an annuity contract. You transfer assets to the College; in return, we agree to make regular, fixed payments to you for the rest of your life. The transaction is both a purchase of an annuity and a charitable contribution.
  2. Deferred Charitable Gift Annuity - This is an excellent retirement program and makes it possible for you to get an immediate income tax deduction, yet defer the receipt of income for a term of years. You determine the date the annuity payments start. When payments begin, they will be at a much higher level than for an annuity that is not deferred. This plan can have the advantages of a tax shelter, because you can receive your deduction in a high- income year and defer income until a later year when your income and tax bracket may be lower.
  3. Pooled Fund Life Income Plan - This plan appeals to those with sufficient income but no substantial capital, as well as to those with capital who don't feel they can give up the income on the contributed assets. The pooled income fund co-mingles your gift with those of other donors. You receive a pro rata share of the fund's dividends and interest, all of which must be paid out. Your portion of the income is taxed to you as ordinary income.
  4. Charitable Remainder Annuity Trust - You can create a charitable remainder annuity trust by irrevocably transferring cash, securities or property to a trust for the College's benefit. In exchange, you and/or your designated beneficiaries will receive a fixed dollar amount, at least annually, for life or for a fixed term up to 20 years (the latter known as a term certain annuity trust). At your death, the death of your beneficiaries or the end of the term, the trust terminates and the assets are transferred to the College.
  5. Charitable Remainder Unitrust - This unitrust is a trust fund established when you transfer assets to a trustee for the College's benefit. As with other life income plans, you retain an income interest in the property and continue to receive the income from it for as long as you live, for your lifetime and that of another beneficiary, or for a fixed term up to 20 years (the latter known as a term certain unitrust). Because we are given a remainder interest (we receive the principal at the termination of the trust), you become eligible for substantial tax benefits. Where a charitable remainder annuity trust provides a fixed amount of income determined at the creating of the trust, the unitrust pays a percentage of the trust assets, as revalued annually.
  6. Charitable Lead Trusts - This trust offers a way for you to support the College and transfer substantial assets to beneficiaries (children or grandchildren, for instance) with the potential for significantly lowered gift and estate taxes. Your heirs may actually receive a larger inheritance than they would through an outright bequest or accumulation trust. Plus, we receive an immediate flow of income. With a charitable lead trust, you transfer property -- i.e. real estate, securities, bonds, partnership interests, and oil and gas properties -- to a trust. The trustee may be the institution, a bank, yourself or any combination thereof. The trust pays an annual amount (a fixed amount or a percentage of the trust principal as revalued annually) to us for a specified period. After this time, the property returns to you or a non-charitable beneficiary -- usually a family member in the next or a succeeding generation. The property is generally appreciated and transferred with significantly reduced gift or estate taxes.