Gifts that Provide Income
Haverford offers a variety of gift structures that provide you with income for life or a term of years as well as substantial tax benefits. At the end of the specified term, the remaining principal reverts to the School’s endowment or to a purpose you specify. These are called “Life-Income” gifts.
In exchange for your gift of cash or stock, the School contractually agrees to make fixed (annuity) payments to you, and up to one other person you name, for life. You can take a deduction for your gift and part of each annuity payment will be treated as tax-free income. When the last annuitant dies, the balance remaining in your fund is added to the School’s endowment or used for the purpose you specify. The older the beneficiary, the higher the annuity rate paid. Annuitants who are 65 or older can begin payments immediately. Younger annuitants must defer payments until age 65 or older. Flexible deferred options with a range of possible beginning dates are available. Not available in all states. Minimum gift: $10,000. Contact us today for an illustration of your projected benefits.
HINT: Younger donors can receive guaranteed annuity payments up to 10% or more by deferring the start date to age 65 or older--a great supplemental retirement plan.
The most flexible and powerful life-income plan available, a Charitable Remainder Trust provides you and/or other beneficiaries you name with income for life or a term of years. As donor, you receive a deduction for any gifts you make to the Trust and you pay no capital gains tax on appreciated assets you donate. You can fund your trust with almost any kind of asset, including cash, appreciated securities, even real estate or business interests. When the last beneficiary dies or the term expires, the remaining principal in your trust goes to Haverford and any other charitable beneficiaries you name for the purpose or purposes you specify. You can make additional gifts to the trust whenever you like (Unitrust only), and you can name the trustee (including yourself, or your registered advisor). Haverford will serve as trustee without charge if we are at least 51% remainder beneficiary. Minimum gift: $100,000. Contact us today for a confidential discussion and an illustration of your projected benefits.
HINT: You can use a “FLIP” Unitrust to defer the start of income payments until later when a special triggering event occurs, such as the sale of real estate used to fund the trust or reaching retirement age.
HINT: You can use the first few years of income payments from your trust to purchase a paid up second-to-die life insurance policy in an ILIT for your children to replace your gift to the trust.
Mary-Helen McCulloch, Esq.
Director of Planned Giving