Ways to Plan a Gift -
Charitable Bequests
Definition
A gift intention to charity described in a
will or living trust.
Further Information
By far the most common deferred gift
plans for St. Lawrence are bequests through wills and
living trusts. A bequest is a flexible planning tool
that can be created or changed with relative ease over
your lifetime. A charitable bequest should include
the proper legal name of the university and its location.
It may also include the university's federal identification
number to prevent confusion with other charities (see Bequest
Language). The bequest should state your intentions
clearly; e.g., is the gift unrestricted, restricted
to a certain purpose, or maybe intended to create or
be added to an endowment? Is your bequest in memory
of you and/or other loved ones? Is your bequest an
outright gift, or a contingency or percentage of your
estate? (see below)
It is wise to discuss your charitable
intentions with St. Lawrence to ensure that your gift
can be used as you intend. St. Lawrence may wish to
document your desires for future reference. Additional descriptions not appropriate to a will, endowment guidelines
for example, may be created and placed on file. Contacting
St. Lawrence offers peace of mind to you, and allows
the university to say "thank you.”
A codicil is an amendment or an attachment
to a will. It is often used to update or make adjustments
to a will without revising the entire document.
Sample
Bequest Language
Request our Estate
Planner Organizer to help you gather and
organize your personal and financial date, and
create your lists and outline your priorities before
you meet with your advisors to create or update
your estate plan.
Here is a list
of items every adult should have as part of his/her
estate plan.
Request a copy
of our Philanthropic Planner to help
you explore and organize your philanthropy, and create
your own philanthropic plan.
Tax and Financial Implications
A bequest intention is a revocable gift,
therefore there is no income tax charitable deduction
at the time it is created. An estate tax charitable
deduction is created when the gift is made at the time
the estate is settled.
A living trust is a separate legal entity
to hold and manage property during life. A bequest
intention in a living trust does not offer an income
tax charitable deduction when it is created. A living
trust is not a type of charitable remainder
trust.
“Types” of Charitable
Bequests
A bequest of a specific amount or
a specific asset describes the dollar amount
or the asset (e.g. a home, artwork or collectible)
that you wish to give to St. Lawrence.
A percentage of all or part
of your estate may allow your gift intention to grow
as your estate becomes larger over time.
Leaving the remainder, or a percentage
of the remainder, of your estate allows you
to take care of other heirs before a gift is made
to St. Lawrence.
A contingency bequest
provides a gift under certain circumstances, e.g. if
certain heirs predecease you.
A gift may be planned to create a testamentary
trust to provide income for heirs first, with
the remainder ultimately going to St. Lawrence when
the trust ends.
Process
to Create
While every gift situation is unique,
there are several steps that may be outlined to help
clarify the process.
- You decide. Philanthropy is a lifelong
process. At some point you may wish to express
your thanks to St. Lawrence and help ensure a St.
Lawrence education for future Laurentians, and
decide that a bequest intention is the way to begin.
- You talk. You may meet with your financial
and legal advisors to create or update your will
and estate plan, and include a charitable bequest
provision.
- We talk. You may wish to speak with
the planned giving office to make sure that your
wishes can be accomplished at St. Lawrence, and
to create the necessary documentation so that those
who come after us can fulfill your intentions.
- You sign. You make a final review and
sign the appropriate legal documents with your
council, and maybe the planned giving office, creating
or modifying your bequest.
- You relax. You have just connected
yourself with the past and the future as you continue
the good work of those who came before you, and
you prepare the way for those who will come after
you. Enjoy the moment!
What to Expect After Your Plan
is Created
The creation of your plan is the start
of a new relationship with St. Lawrence:
- If you are a new member of the Manley Society,
you will receive letters of welcome.
- As a Manley Society member, you will receive
the society annual report each year, and an invitation
to the annual meeting held during reunion each
June.
- You will be recognized as a member in the university
annual Report of Appreciation as a way for us to
say “thank you” and encourage others
to plan for St. Lawrence as well.
This web page does not provide legal or financial advice, nor is it intended as a comprehensive review of the topic. You should consult your attorney, tax advisor and St. Lawrence before making or planning your gift.
