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‘Planned Giving’ preserves donor’s vision,
values; perpetually changes lives of others

Susan Reeks
Few people understand the benefits of “Planned Giving.” Simply put, a planned gift is the process of supporting charity with estate assets and these gifts require consideration and planning. “Plan now, pay later” is the usual arrangement, with the transaction often benefiting or providing something to both the donor and the charity.

There are many good reasons why you might want to hang on to your hard-earned money, one being to provide security for yourself and your family. You can provide that security, however, while making arrangements to help the missions and causes you love. You can pass on your inheritance while also passing along your particular values to future generations. Following are six examples people often use when explaining why they can’t arrange for a planned gift:

§“I don’t want to be a burden to my kids.” Mary Ellen wants financial security. Even though she feels she can’t give up her assets now, she could make a charitable gift that would become irrevocable at death. These testamentary gifts are the most familiar and easiest planned gifts to make. Mary Ellen could arrange to leave a gift of cash or assets to LSUS in her will. Instead, Mary Ellen might want to name LSUS as beneficiary of an existing life insurance policy. Still another option for Mary Ellen is to name LSUS as beneficiary of her IRA or 401(k), which would not only create a deduction for the estate (saving estate taxes), but would also save income taxes for her heirs.

§“All of our assets are tied up in our house and retirement savings.” Bobby and Pat live a comfortable life but can’t really make a gift at this time. Because Pat always wanted to go to college but never had the means to do so, she wishes she could establish an endowed scholarship fund. Bobby and Pat could make arrangements now to give at the time of their death through a bequest of their estate assets (their home, stock or retirement fund), enabling them to make a gift to LSUS that they wouldn’t be able to make while they are living.

§“I need to make sure my grandchildren can afford to go to college.” Some planned gifts don’t just benefit the donor; they also benefit a spouse, children or even grandchildren. Lenora wants to make sure that her new granddaughter will be able to attend the college of her choice. By creating a Charitable Lead Trust, Lenora could receive a gift tax deduction, with LSUS getting the interest on the principal for a fixed term of years. When Lenora’s granddaughter gets ready to enroll in college, she would get the remaining amount for tuition.

§ “I want to leave my assets to my only child but I’m not ready to give them to him at this point in his life.” Elton wants to eventually pass on his assets to his son Charles. Like Lenora, Elton could create a Charitable Lead Trust. LSUS would get the interest on the principal for a fixed term of years, with Charles getting the remaining amount at a time chosen by Elton.

§“I can’t make arrangements for a gift now because I have to make sure my wife will be taken care of after I’m gone.” Ben has always taken special care of Elaine, the love of his life. Both Ben and Elaine deeply care about education, but Ben’s first responsibility is providing for Elaine should he happen to die first. Ben could set up a Charitable Remainder Trust or provide for a Charitable QTIP Trust in his will to provide income for Elaine’s lifetime, with LSUS receiving the remaining principal after she dies.

§ “I need a stream of income right now to pay for retirement and for my healthcare costs.” Art needs his assets to support himself now. He could contribute cash or appreciated assets to a Charitable Remainder Trust that would pay him interest income for life or for a specific time period. Art would receive income, and possibly gift tax deductions and, if appreciated assets are donated, favorable capital gains tax treatment. This is a great way to turn non-income producing assets into an income stream while helping LSUS at the same time.

Your vision and values are priceless and worth preserving. Your planned gift to LSUS passes on those values, and honors you and your family by perpetually changing the lives of others. Using your estate assets to make that happen allows you to make a gift you might not otherwise be able to make.

Please discuss your options and your wishes with your tax advisor or attorney. Whatever you decide about your estate plans, it is important to define your plan in your will. If you don’t know where to start, you can contact our Development Office at 797-5257. Always be assured that any information you share with us will remain completely confidential. Please let us show you how to share your values and improve lives for many years to come.