Specific Planned Giving Vehicles
Types of Bequests
Residual Bequest: UNE/Westbrook College Campus is given all or a percentage of the remainder of an estate after specific amounts bequeathed to other beneficiaries are distributed and estate-related expenses are paid.
Specific Bequest: UNE/Westbrook College Campus receives a specified dollar amount or specified assets, such as securities, real estate, or tangible personal property.
Contingent Bequest: Provides for UNE/Westbrook College Campus upon the occurrence of some event. For example, if a primary beneficiary does not survive the donor.
Testamentary Trusts:
A trust is established through a will, trust beneficiaries receive income for life or a term of years, and, at the end of the trust term, UNE/Westbrook College Campus receives the remainder.
Pooled Life Income Fund:
The pooled life income funds root back to Westbrook College and provide income to a donor and others (up to 2 income beneficiaries may be named) while also allowing the donor to make a significant gift to UNE/Westbrook College Campus. The contribution is commingled with those of other donors for investment purposes. The fund pays the donor a proportionate share of net income quarterly. When the donor or the last of the income beneficiaries dies, the principal attributable to the gift is removed from the fund and distributed to UNE/Westbrook College Campus. A gift of at least $5,000 is required to establish a pooled life income fund.
Charitable Remainder Trusts:
A Charitable Remainder Trust (CRT) provides a donor and/or other beneficiaries a stream of income for life or a period of years. After the trust terminates, the accumulated principal, or "remainder interest," goes to UNE/Westbrook College Campus. The minimum funding level for a CRT is $25,000. Income payments from the trust are made on a quarterly basis at the end of each calendar quarter.
Basic CRTs include:
Unitrust (CRUT)
Pays a variable income based on a fixed percentage (typically between 5-6%) of the trust assets, revalued once each year. One advantage of a unitrust is that income can increase as the trust principal grows over time. Also, a donor may make additional contributions at any time.
FLIP Unitrust (FLIP)
Recently approved by the IRS, the FLIP Unitrust allows a donor to limit income payments until a future time, such as a 65th birthday, the sale of an illiquid asset, or the time a child or grandchild enters college. At the time of such a specified event, the trust is said to "flip," and begins to pay a higher percentage of the trust assets. During the earlier period of limited income payments ("pre-flip"), the trust assets can accumulate tax-free.
Annuity Trust (CRAT)
Pays a fixed annual income determined at the outset. The annuity trust is often preferred by those who are interested in the security of a constant return. Additions cannot be made to annuity trusts.
Charitable Lead Trust (CLT)
The Charitable Lead Trust (CLT) is a powerful way to make a future transfer of assets to heirs at a significantly reduced gift and estate tax cost, while also supporting UNE/Westbrook College Campus with income. During a specified number of years, an annuity or a fixed percentage of the trust assets is paid to UNE/Westbrook College Campus. At the end of the trust term, the assets are passed to the beneficiaries a donor names. A donor can fund a CLT with cash, publicly traded securities, closely-held stock, income-producing real estate, partnership interests, or a combination of the above.
Gifts of Real Estate:
May include personal residences, commercial buildings, farms, and parcels of land-can be an extremely advantageous way to give to UNE/Westbrook College Campus. Gifts of real estate qualify for a charitable income tax deduction based on the appraised fair market value of the property, regardless of what a donor originally paid for it. A donor may deed the property outright to UNE/Westbrook College Campus, establish a life-income arrangement (such as a Charitable Remainder Trust), or even transfer ownership while retaining the right to reside on the property for the rest of your life or a term of years, after which the property reverts to UNE/Westbrook College Campus (a "Life Estate").
It is also possible to gift a fractional interest (called an "undivided interest") in real estate. If there is an outstanding mortgage on a property, a donor may want to explore a Charitable Bargain Sale, which would allow a donor satisfy the mortgage, take a charitable deduction for the gift portion of the property, and possibly receive income payments for life or a term of years.
Life Insurance:
Life Insurance is another asset that can be used to make a charitable gift to UNE/Westbrook College Campus. The institution may simply be named as the beneficiary of a life insurance policy, or may be named the owner and beneficiary, of a donor’s whole life policy during a donor’s lifetime. This option provides invaluable support for UNE/Westbrook College Campus and also provides a current charitable income tax deduction. For gifts of fully paid-up policies, the deduction will be equal to the policy's surrender value or net premiums paid, whichever is less. In certain cases, a donor may arrange to give a partially paid-up policy to UNE/Westbrook College Campus, receive a deduction for the cash surrender value of the policy, and deduct any premiums you continue to pay through the institution.
Other Planned Gifts
Retirement Plan Assets
Your pension plans and IRA may be larger than you ever imagined. Often, despite the annual mandatory distributions, retirement plan assets continue to grow. With careful planning, there are ways to maximize support of family members and your favorite philanthropies and maximize the use of the funds in your retirement plan account. Please contact a member of the Planned Giving staff for more information about gifts of retirement plan assets.
Gifts-in-Kind
You may have art, antiques, jewelry or other personal property that you wish to give to the University. We often work with donors on valuation and tax deduction issues in connection with such gifts-in-kind. Please contact a member of the Planned Giving staff for more information about gifts-in-kind.