Planned giving allows you to make both extraordinary contributions to Wilson College and to provide for your own financial future. Planned gifts can be very simple to implement, and can serve an important role in your estate plans. By extending your support to us through your long-term estate or financial plans, your special relationship with the College will continue for years to come. Many planned gifts provide sizable tax benefits and can provide you income and security during your life.
What It Is:
A charitable remainder annuity trust ("annuity trust") is a gift plan defined by federal tax law that allows you to provide income to yourself or others while making a generous gift to Wilson College. The income may continue for the lifetimes of the beneficiaries you name, a fixed term of not more than 20 years, or a combination of the two.
As an annuity trust donor, you irrevocably transfer assets, usually cash or securities, to a trustee of your choice (for example, Wilson College or a bank trust department).
During the trust's term, the trustee invests the trust's assets. Each year, the trustee distributes a fixed dollar amount to your income beneficiaries. The payments must be between 5% and 50% of the trust's initial value and are made out of trust income, or trust principal if income is not adequate. Payments continue until the trust term ends or until the highly unlikely event that the trust distributes all its assets. Payments may be made annually, semiannually, or quarterly.
When the annuity trust term ends, the trust's principal passes to Wilson College, to be used for the purpose you designate.
What It Is:
A charitable remainder unitrust ("unitrust") is a gift plan defined by federal tax law that allows you to provide income to yourself or others while making a generous gift to Wilson College. The income may continue for the lifetimes of the beneficiaries you name, a fixed term of not more than 20 years, or a combination of the two.
As a unitrust donor, you irrevocably transfer assets, usually cash, securities, or real estate, to a trustee of your choice (for example, Wilson College or a bank trust department).
During the unitrust's term, the trustee invests the unitrust's assets. Each year, the trustee distributes a fixed percentage of the unitrust's current value, as revalued annually, to your income beneficiaries. If the unitrust's value goes up from one year to the next, its payout increases proportionately. Likewise, if the unitrust's value goes down, the amount it distributes also goes down. For this reason, it may be to your advantage to choose a relatively low payout percentage so that the unitrust assets can grow, which in turn will allow the unitrust's yearly payments to grow.
Payments must be between 5% and 50% of the trust's annual value and are made out of trust income, or trust principal if income is not adequate. Payments may be made annually, semiannually, or quarterly.
When the unitrust term ends, the unitrust's principal passes to Wilson College, to be used for the purpose you designate. You may add funds to your unitrust whenever you like.
A deferred gift annuity is a simple contract between you and Wilson College.
In exchange for your irrevocable gift of cash, securities, or other assets, Wilson College agrees to pay one or two annuitants you name a fixed sum each year for life, with payments starting at least one year after your gift. The older your designated annuitants are at the time of gift and the longer payments are deferred, the greater the fixed income Wilson College can agree to pay.
In most cases, part of each payment is tax-free, increasing each payment's after-tax value. If you give appreciated property you will pay capital gains tax on only part of the appreciation. In addition, if you name yourself as an annuitant the capital gains tax will be spread out over many years and the first installment will not be due until you receive your first annuity payment.
Payments are usually made annually, semiannually, or quarterly.
A non-grantor charitable lead annuity trust is a gift plan defined by federal tax law that allows you to transfer assets to family members at reduced tax cost while making a generous gift to Wilson College.
As a lead annuity trust donor, you irrevocably transfer assets, usually cash or securities, to a trustee of your choice (for example, Wilson College or a bank trust department).
During the lead annuity trust's term, the trustee invests the trust's assets and provides a fixed dollar amount each year to Wilson College. These payments are used for the charitable purpose you designate and continue until the trust term ends or until the highly unlikely event that the trust distributes all its assets. The trust's term may be for a specific number of years (10-20 years is common), one or more lifetimes, or a combination of the two. The payments are made out of trust income, or trust principal if the trust income is not adequate. If trust income during a given year exceeds the annual charitable payment, the trust pays income tax on the excess.
When the lead annuity trust term ends, the trust distributes all of its accumulated assets to family members or other beneficiaries named by you.
A non-grantor charitable lead unitrust is a gift plan defined by federal tax law that allows you to transfer assets to family members at reduced tax cost while making a generous gift to Wilson College.
As a non-grantor lead unitrust donor, you irrevocably transfer assets, usually cash or securities, to a trustee of your choice (for example, Wilson College or a bank trust department).
During the lead unitrust's term, the trustee invests the unitrust's assets. Each year, the trustee pays a fixed percentage of the unitrust's current value, as revalued annually, to Wilson College. If the unitrust's value goes up from one year to the next, its payout to Wilson College increases proportionately. Likewise, if the unitrust's value goes down, the amount it donates also goes down. These payments are used for the charitable purpose you designate.
The lead unitrust's term may be for a specific number of years (10-20 years is common), one or more lifetimes, or a combination of the two. Payments are made out of trust income, or trust principal if the trust income is not adequate. If trust income exceeds the charitable payment in a given year, the trust pays income tax on the excess.
When the lead unitrust term ends, the unitrust distributes all of its accumulated assets to family members or other beneficiaries named by you. You may add funds to your unitrust whenever you like.
A charitable gift annuity is a simple contract between you and Wilson College.
In exchange for your irrevocable gift of cash, securities, or other assets, Wilson College agrees to pay one or two annuitants you name a fixed sum each year for life. The payments are guaranteed by the general resources of Wilson College.
The older your designated annuitants are at the time of the gift, the greater the fixed income Wilson College can agree to pay.
In most cases, part of each payment is tax-free, increasing each payment's after-tax value. If you give appreciated property you will pay capital gains tax on only part of the appreciation. In addition, if you name yourself as an annuitant the capital gains tax will be spread out over many years rather than be all due in the year of your gift.
Payments are usually made in annual, semiannual, or quarterly installments.
Office of Institutional Advancement
Denise M. McDowell
Director of Development
717-264-2111
717-816-3102 (cell)
Toll Free: 866-446-8660
denise.mcdowell@wilson.edu
