A charitable remainder trust (CRT) is established when you transfer assets (whether cash or appreciated) to the trustee named in the trust agreement (e.g., bank or AB). Your trustee invests the assets for the term of the trust, which can be the life of your beneficiary (or beneficiaries) or a term of no more than 20 years. When the trust ends, remaining assets are distributed under the guidelines you set for your gift to AB.
The following language may be used for making a bequest pledge gift to AB by will or living trust: “I give, devise, and bequeath to Alderson Broaddus University, a non-for-profit corporation existing under the laws of the State of West Virginia and located in Philippi, West Virginia (percent of my estate, dollars, property, securities, etc.) to be used for (name of program or fund) at Alderson Broaddus University.”
A gift of appreciated stocks, bonds, or mutual funds that have been held more than one year is a popular alternative to contributing cash because you can save taxes twice: by avoiding capital gain tax and by receiving a charitable income tax deduction. If your securities have appreciated in value, you can avoid capital gain tax that would be applied when securities are sold. You may also earn a charitable income tax deduction for the full market value of the securities. With the tax savings, the “cost” of your gift to AB may be much less than the actual value — and preferable to a cash gift. In a sense, the IRS pays a portion of your gift.
Life Insurance has become a standard tool in charitable planning and wealth replacement. Making AB the beneficiary of your life insurance policy may allow you to improve the lives of many of our future students.
A charitable gift annuity is a simple combination of two concepts: a charitable gift and income for life. Think of it as the gift that gives back. A gift annuity allows you to make a gift to the AB program of your choice and receive income. In exchange for an irrevocable gift of cash, publicly traded securities, or other assets, AB agrees to pay one or two persons a fixed annual income. The charitable gift annuity payout rate is set by the American Council on Gift Annuities and is often higher than what is available from many conservative investments.
*If you are at least 70.5 years old, you may be able to make an annual gift with your qualified charitable distribution (QCD) by directly transferring funds from your IRA custodian to AB. A QCD gift can often be counted toward satisfying your minimum required distributions (RMDs) for the year and is a convenient and often tax-free way to make a gift. Please consult your tax professional for more information and then click here for instructions on how to make this gift in support of Alderson Broaddus University.
You may also want to consider making a deferred gift to AB by using retirement plan assets. To do so, contact your plan’s administrator and request a Change of Beneficiary Designation Form. Your spouse may have to waive their rights to these funds, and you can designate a specific amount or a percentage amount. We encourage you to consult your tax professional about how this could reduce the tax burden on your heirs.
