 Planned giving at Baylor allows you to integrate your personal, financial and estate planning goals with lifetime or testamentary charitable giving. There are many opportunities for charitable giving in circumstances that may not otherwise allow a donor to make a gift to charity. Follow the links below to learn more about the different ways you might utilize gift planning to achieve your investment of a lifetime.
• Bequests
• Charitable Gift Annuities
• Charitable Remainder Trusts
• Charitable Lead Trusts
• Life Estate Reserved
A bequest is the simplest type of planned gift to make and one of the easiest to implement.
A donor can leave property to Baylor by including a bequest in his or her will or trust. Property that passes by a beneficiary designation (such as individual retirement accounts) can be left by designating Baylor as a beneficiary.
- Specific Asset Bequests
Many bequests transfer a specific item to a beneficiary. "I give my car to Joshua."
- Specific Amount
Another common transfer within a will is the gift of a specific dollar amount. "I give $1,000 to Sarah."
- Bequest of a Percent of the Residue
A fractional amount or percent of the residue may be transferred to Baylor. "I give 50% of the residue of my estate to Amanda."
- Undivided Percentage of Asset Bequests
A testator may bequeath or devise an undivided percentage of a particular asset. "I give half of my home to Brian."
Click here for Baylor's Bequest Language.
A gift annuity is an agreement where a donor makes a gift of cash or property and Baylor agrees to make fixed payments for one or two lives.
A charitable gift annuity (CGA) is a contract between a donor and Baylor.
- Duration
A donor gives cash or appreciated property to Baylor.
In exchange, Baylor makes fixed payments for the lifetime(s) of one or two individuals.
- Payout Rate
Gift annuity payments are based on a rate schedule. Many charities use rates set by the American Council on Gift Annuities (ACGA). Under the ACGA's rates, the older the age of the person receiving the gift annuity payments, the higher the rate.
- Taxation of Payments
A predetermined portion of each gift annuity payment is tax-free, and the remaining amount of each payment is taxable at either capital gain or ordinary income tax rates.
- Timing
A gift annuity contract can begin making payments immediately (a current gift annuity) or defer payments for at least one year (a deferred gift annuity).
Customize your own charitable gift annuity using Create Your Plan.
A charitable remainder trust receives cash or property from a donor, makes payments for a life, lifetimes or term of years and then distributes the remainder to Baylor.
A donor transfers cash or appreciated property to the CRT. The CRT is a tax-exempt trust that can sell the appreciated property without paying capital gains tax.
- Duration
A CRT can last for the lifetime of one or more beneficiaries or for a specific term of years.
- Annuity vs. Unitrust Payout
A charitable remainder annuity trust (CRAT) pays a fixed dollar amount each year. By contrast, a charitable remainder unitrust (CRUT) pays an amount equal to a percentage of the trust value at the beginning of each year.
- Taxation of Payouts
Most CRT payouts are taxed to the beneficiary as ordinary income and/or capital gain.
- Payout Flexibility
A unitrust offers four flexible payout options. A standard CRUT pays a fixed percentage of the trust value. A net income trust (NICRUT) pays the lesser of the trust's net income or the standard amount. A net income with makeup trust (NIMCRUT) is like a NICRUT but can make additional distributions. Finally, a FLIP trust pays like a NIMCRUT until a certain date or event and then "flips" to payout like a standard CRUT.
Customize your own charitable remainder trust using Create Your Plan.
A charitable lead trust (CLT) receives cash or property from a donor and makes payments to Baylor for a specified period. At the end of the period, it distributes the trust property to a specified beneficiary, usually family.
A donor transfers cash or property to the CLT. Unlike a CRT, a CLT is a taxable trust. Each year the CLT will report its income and then take a deduction for the amount that it distributes to charity, any excess is subject to tax.
- Duration
A CLT can last for the lifetime of one or more beneficiaries or for a specific term of years.
- Annuity vs. Unitrust Payout
Each year, a CLT pays either a fixed annuity amount or a percentage unitrust amount to charity.
- Lead Trust Types
A family CLT receives property and usually distributes it to a family member at the end of the term. A gift tax deduction is available to a donor who creates a family CLT. A grantor CLT receives property that ultimately returns to the donor. The donor gets an income tax deduction when the trust is created. However, the donor has to report trust income on his or her personal income tax return each year.
Customize your own charitable lead trust using Create Your Plan.
Life Estate Reserved
Baylor accepts a gift of property – either a personal residence or farm – and the donor retains the right to use the property for his or her lifetime.
A donor executes a deed transferring a house or farm to Baylor. On the deed, the donor retains a "life estate," that grants the donor the right to use the home for life.
- Duration
The life estate typically lasts for the life of the donor.
- Deed Restrictions
The deed of the remainder interest to charity must not be restricted.
- Mortgage
It is possible for a donor to make a gift of a remainder interest even though there is a mortgage upon the residence.
- MIT Agreement
The donor agrees to be responsible for the maintenance, insurance and taxes on the property.
Contact us for more information on life estates.
Return to the top of the page. |
