Gifts of Life Insurance
Life insurance policies allow donors to make significant gifts to SUNY Canton. By donating an existing policy that is no longer needed for its original purpose, or by purchasing a new policy for the purpose of making a charitable gift, the donor receives some important tax benefits and the college receives a future gift. The policy may name SUNY Canton either as beneficiary or as owner of the policy.
Gifting an existing life insurance policy may yield significant tax benefits.
Bequests by Will
A bequest is the most traditional way to provide significant assistance to SUNY Canton. Because a bequest is a gift made through your will, you retain full use of your gift property during your lifetime. There are several types of bequests, depending on your inheritance intentions, but all may offer significant estate and inheritance tax benefits.
Sample Language: "I give, devise and bequeath to SUNY Canton College Foundation $_________, the principal and income which may be used for such purposes as the Board of Directors may determine."
Listed below are several common forms of charitable bequests that will likely fit most individuals' needs. Included in some of these descriptions is sample language a donor may use when creating the gift. Of course, donors should be encouraged to consult their own attorney when redrafting a will document to ensure that it is appropriate for their personal needs.
A charitable gift annuity pays you (and another beneficiary if you so desire) a fixed dollar amount for life in exchange for an irrevocable gift to SUNY Canton. You receive an immediate tax deduction for the gift portion of the annuity. In addition, a portion of each annuity payment is tax-free. The amount of income you receive from the annuity is based upon your age (and the age of any other income beneficiary), using the standard rates recommended by the American Council of Gift Annuities.
Charitable Remainder Trusts
When you create a charitable remainder trust, you irrevocably transfer money, securities or other assets to a trust that will then pay you an income for life or for a period of years. If you wish, the trust also can pay an income to another beneficiary of your choice. At the death of the surviving beneficiary, the remaining principal in the trust goes to SUNY Canton.
You can design your trust to fit your own special needs. First, you decide how much you'd like to put into the trust. Second, you determine the income you'd like to receive from the donated assets. The rate of income return you select must be at least 5 percent. Usually, the rate selected is 5 percent to 7 percent. The best rate for you will depend upon the number of beneficiaries you select and their ages. Third, you decide which type of charitable remainder trust will work best for you.
Choosing a charitable remainder trust is a little like shopping for a new car-the right one depends on your personal needs. Luckily, CRTs come in five variations. We can help you and your professional advisors decide the method that will work best for you.
Charitable Lead Trust
When people think about providing an inheritance to children and making a significant charitable gift through their estates, a vehicle known as the "charitable lead trust" is an excellent way to accomplish both objectives.
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