Direct Bequests at Death. When you bequeath property to Willamette University through a will or living trust, the amount of the bequest is deductible from your federal taxable estate. Therefore, a bequest to Willamette might significantly reduce your estate taxes. In 2006, estates larger than $2 million are now subject to federal estate tax, at rates as high as 50%.

Bequests to Life-Income Arrangements. You also might substantially reduce estate taxes with a bequest to a life-income arrangement. Please visit Life-Income Gifts to learn about life-income arrangements. With a life-income arrangement, following your death your designated heirs would receive income for life, and afterwards the University would receive the remainder of the property.

Lifetime Transfers to Lead Trusts. In a number of circumstances, donors who have sufficient income may find a "lead" trust an attractive way to make a delayed transfer of assets to children, grandchildren, or other heirs. With a lifetime transfer to a lead trust, you contribute cash or property to a trust. Willamette receives income from the trust for a designated term, typically either for your life or for a specified number of years. At the end of the term of the trust, the trust assets are distributed to your named beneficiaries. When interest rates are low -- as they are now -- the applicable tax rules are especially favorable and permit a large portion (sometimes 100%) of the assets to be transferred free from gift and estate tax. A lead trust also helps reduce the special taxes that apply to large gifts or bequests to grandchildren.

Bequests to Lead Trusts. With a bequest to a lead trust, the University receives income from the trust during the term of the trust, which you specify in your will. At the expiration of the trust, your named beneficiaries receive the trust assets. Bequests to a lead trust often provide substantial estate tax savings.

The Office of Gift Planning would be pleased to discuss with you or your attorney ways to include the University in your estate plans. Please contact us at (503) 370-6022.