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Deferred (Planned) Gifts
Charitable Gift Annuity
This is a contract between the donor and the MBL whereby the donor transfers cash or securities to the MBL in exchange for quarterly payments in the form of a guaranteed fixed annuity to the donors, a designated beneficiary or both. The amount of annual income received is determined by the ages(s) of the beneficiar(ies) and the IRS discount rate in effect at the time of the gift. Benefits include guaranteed annual income, a portion of which is tax-free; immediate income-tax charitable deduction; and potential estate tax savings. A minimum initial contribution of $10,000 is required.
Deferred Gift Annuity
The deferred gift annuity may be a desirable retirement program. A donor may claim an immediate tax deduction, yet defer the receipt of income for a term of years. The donor determines the date annuity payments will start at which time they will be at a higher rate than for an immediate annuity and may be taxed at a lower rate if payments are deferred until retirement. A minimum initial contribution of 410,000 is required.
Charitable Remainder Trusts
Charitable remainder trusts are slit-interest trust, with both an individual income beneficiary and a charitable beneficiary of the reminder. The donor transfers assets irrevocably to a trust and specifies how the trust income and principal are to be distributed. The value of the charitable reminder of such trusts must equal or exceed 10% of the fair market value of the assets used to establish the trust.
Unitrust
The primary feature of a unitrust is that the payment must equal a fixed percentage of the new fair market value of the trust assets and therefore may vary from year to year. The donor sets the percentage upon creation of the unitrust. Provision may be made for years when the unitrust’s income is less than the designated percentage. The donor is allowed an income tax deduction equal to the present value of the MBL’s remainder interest in the unitrust. The MBL can serve as trustee but the trust itself will be managed externally. A minimum $100,000 fund balance is required.
Annuity Trust
The annuity trust differs from a unitrust in that it provides fixed distributions. In addition, the donor is not entitled to a tax-deduction if there is more than a 5% chance that the trust assets will be exhausted prior to the termination of the trust so that the MBL would receive nothing.
Charitable Lead Trust
The inverse of a charitable reminder trust, the lead trust provides that income generated from assets placed in trust is paid to the MBL for a period of years, after which time the assets either return to the donor or are transferred to a named beneficiar(ies). The donor receives a federal gift tax deduction for the present value of the MBL’s income stream. Assets transferred upon the donor's death will be taxable but any growth on the principal would be free of estate tax.
Gift and Replacement Trust
With proper planning, a donor is able to make a major gift to the MBL and "replace" the asset so that it passes to the donor’s heirs outside the estate. This is done by giving highly appreciated assets to a charitable reminder trust, and using the tax savings or trust distributions to create a life insurance trust that will purchase life insurance on the donor.
Other Deferred Gifts
For information on the following types of deferred giving, please contact Kristine Johnson:
(508) 289-7766 | kjohnson@mbl.edu
- Retained Life Estate
- Life Income through Gift of Real Estate
- Bequests
- Totten Trust
- Fully Paid-up Non-term Insurance Policies
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Pamela Clapp Hinkle, Director of Development & External Relations
Tel: (508) 289-7423 | E-mail: pclapp@mbl.edu
Kristine Johnson, Special Gifts and Planned Giving
Tel: (508) 289-7766 | E-mail: kjohnson@mbl.edu
Susan Joslin, Associates Administrator
Tel: (508) 289-7281 | sjoslin@mbl.edu
Wendy Skinner, Foundations and Corporate Relations
Tel: (508) 289-7414 | E-mail: wskinner@mbl.edu
Kate Shaw, Annual Giving and Alumni Affairs
Tel: (508) 289-7416 | E-mail: kshaw@mbl.edu
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