Deferred Gifts: Pay Yourself Now, Pay Us Later
Do you remember Wimpy, the character in the Popeye cartoons who would say, “I’ll gladly pay you Tuesday for a hamburger today?”
Nothing sums up the essence of deferred gifts than that.
Charitable remainder trusts, the University of Redlands Pooled Income Fund Trust, charitable gift annuities, and the charitable life estates enable you enjoy income (or other beneficial interests) and tax benefits today, while supporting Redlands tomorrow.
Deferred gifts involve the unconditional transfer of property either directly to the university or in trust. Depending on the gift type, you may transfer cash, appreciated securities, real estate, and in certain cases other types of property. Deferred gifts are “split-interest” gifts. Each consists of a retained interest and a charitable, also known as a remainder, interest. The charitable income tax deduction for deferred gifts is equal to the value of the charitable interest.
The most common deferred gifts provide you or your designated beneficiaries with income for life or a specific term of years, after which time the university receives the remainder of the original gift. Depending on your circumstances, one of the following gift vehicles can be used.
• Charitable Remainder Trusts
Charitable remainder trusts are special trusts authorized by federal law. They come in two types: annuity trust and unitrust. With either type, payments are made to one or more beneficiaries for either their lives, a term-certain not to exceed 20 years, or certain combinations of both. They can address a variety of planning needs. Read more…
• University of Redlands Pooled Income Fund Trust
As its name suggests, the University of Redlands Pooled Income Fund Trust receives contributions from many donors, much like a commercial mutual fund receives funds from many investors. It is especially suited to making gifts smaller than required for a charitable remainder trust, as well as younger donors. Read more…
• Charitable Gift Annuity
A charitable gift annuity is a simple contract by which the University of Redlands, in exchange for a gift of money or property, pays a fixed sum each year to up to two beneficiaries (annuitants) for life. This promise becomes a general obligation of the University and is backed by its full assets and reserves. A gift annuity is suitable for older individuals who prefer the certainty of fixed income. Read more…
• Remainder Interest in Personal Residence or Farm
A gift of a remainder interest in a personal residence or farm involves a transfer of title to a personal residence, vacation home, farm, or other qualified real property to the university subject to the retained right to occupy and otherwise enjoy the property's benefits for your life. All other tax advantages of ownership, e.g., depreciation allowances or rental income, accrue to you. Read more…