The ABCs of Planned Gifts 

A planned gift, as its name suggests, requires planning, and that planning is usually tax planning. The term includes several types of gifts, one of which is the donation of an asset in exchange for an income, usually provided after the asset is put into a charitable trust. At some point, not necessarily immediately, a charitable organization like Willamette University receives the asset. In other words, the donor parts with the asset today to receive the income and tax benefits, while the actual gift of the asset to Willamette is deferred for a period of time, often the lifetime of the donor.

Planned Gifts That Pay
In the context we have established here, a planned gift can include a "life income gift" because you receive an income from the donated assets, in many cases for the rest of your life. Here are two types of life income gifts:

  • Charitable Remainder Annuity Trust
    You place assets into a trust (usually a minimum of $100,000) from which you receive a life income at a fixed amount. After your lifetime, and the lifetime of a surviving beneficiary, if desired, the trust remainder goes to Willamette.
  • Gift Calculator Calculate your possible benefits with a charitable remainder annuity trust.
  • Charitable Remainder Unitrust
    This works like an annuity trust, except that the income you receive varies each year based on a set percentage of the value of the trust assets, redetermined each year.
  • Gift Calculator Calculate your possible benefits with a charitable remainder unitrust.

Consult the Experts
The use of gift planning techniques has grown dramatically over the past 20 years, benefiting thousands of charitable organizations, such as Willamette University. Each type of planned gift carries its own complexities, which are best negotiated by an experienced professional.

To learn more about which gift vehicle would best suit your situation, please contact us at (866) 204-8102 or, via e-mail at sbrier@willamette.edu, for a no-obligation consultation. We would be happy to meet with you and your financial, tax or legal advisors to determine a plan that works for you.