Financial & Estate Planning
A planned gift to University Settlement helps to ensure the future of the vital services we provide. There are several ways to make a planned gift:
University Settlement is grateful for bequests that may be used immediately upon receipt and where most needed. The donor receives an estate tax deduction for the full amount of the bequest. To make a bequest to University Settlement, the following language will be helpful to your lawyer:
I give and bequeath to University Settlement, a New York not-for-profit corporation whose address is 184 Eldridge Street, New York, NY 10002, the sum of ________ (or otherwise describe the gift or specify a percentage of the estate) for its general operating fund.
There are three ways to make a bequest:
- Specific Bequest
Designate a specific dollar amount, specific percentage of the total estate, or specific property to University Settlement.
- Residual Bequest
After paying all debts, taxes, expenses, and specific bequests, transfer the remainder of your estate to University Settlement.
- Contingent Bequest
Designate that University Settlement receive all or a portion of our estate only under certain circumstances. For example, you can name University Settlement as a beneficiary of your estate only if there are no surviving close family members. Among other things, a donor may bequeath cash, securities, real estate, or life insurance.
Life income gift
A life income gift is a gift that pays the donor an income for life in exchange for assets. The following are examples of life income gifts:
- Charitable Remainder Trusts
The charitable remainder trust pays the donor a lifetime income or income annually for a set number of years. Payments are determined at the time the trust is established, depending on the donor's needs and financial objectives. Upon termination of the trust, the principal is distributed to University Settlement. The donor can claim a charitable deduction the year that s/he creates the trust. Annual payments are taxed as ordinary income, and in some cases as capital gain or tax-free return of principal.
- Charitable Gift Annuity
In exchange for an irrevocable contribution of cash or securities, the donor and/or a second annuitant receives a generous, fixed rate of lifetime income, part of which is tax-free. The donor is also entitled to an income tax charitable deduction for part of the amount of the gift (usually about half). Capital gains on any appreciation of the gift asset are treated very favorably for tax purposes.
Life insurance is a valuable and often overlooked asset that can be donated in a philanthropic estate plan. There are two ways to donate life insurance:
- Make University Settlement owner and beneficiary of a new or existing policy.
The donor receives an immediate tax benefit if the policy is paid-up. If the policy is not fully paid-up, your annual gifts to University Settlement to cover premium payments are tax-deductible. The value of the policy is determined by IRS rules.
- Make University Settlement the beneficiary of a new or existing policy, but not the owner.
This enables the donor to make a large future gift at small present costs; by retaining ownership, the donor controls the asset, has the ability to invade the policy value in an emergency and change the beneficiaries. No immediate tax benefit is realized. In time, the value of the policy is added to the gross value of the rate and an estate tax charitable deduction would be levied for the proceeds paid to University Settlement.
STOCK AND MUTUAL FUNDS
Donating appreciated securities – such as stocks or mutual funds – is a tax-smart approach to show your support of our work. It can have many benefits, including avoiding federal or state tax on the capital gains; receiving an income tax deduction for the full market value of the gift if you itemize your tax return; and making a more substantial gift to us at a lower original cost to you. It's a great way to advance a cause you care about for both you and us – and we couldn't be more grateful.
Making a gift of stock or mutual funds is easy. Please contact Catherine Carpentieri at (212) 453-0248 or at email@example.com so that we can facilitate the donation. Please have on hand the following information:
- Your first and last name, street address, telephone number, and email address.
- Name or type of stock, and number of shares you will donate.
- Your broker's name, phone number, and the name of her or his brokerage firm.
We will then provide the information you need to complete the transaction.
Please contact Krystal Zamora, Development Assistant at (212) 453-0257 or firstname.lastname@example.org for more information.