Other Creative Gifts

Charitable Lead Trust; Remainder Interest in House, Vacation Property or Farm

Exploring creative ways to use your assets to benefit yourself, your loved ones and Maryville University may lead you to consider the charitable lead trust and/or the gift of remainder interest in house, vacation property or farm.

Other Creative Gifts: Charitable Lead Trust

This is the reverse of gifts that pay you income; here the concept is “Give the fruit, keep the tree.”

A charitable lead trust can provide a donor with the opportunity to provide income to Maryville University for a period of time, with the principal (and any appreciation) returning to the donor or passing on to loved ones. A charitable lead trust can either be a unitrust or an annuity trust. If the principal returns to the donor (grantor charitable lead trust), the donor will receive an income tax charitable deduction in the year the charitable lead trust is created, but the donor will be taxed on the income coming to Maryville. When the principal passes to loved ones (non-grantor charitable lead trust), the donor will be entitled to sizeable gift/estate tax benefits, and the payments to Maryville University will not be taxed to the donor. Charitable lead trusts can be created during life or through one’s estate plan.

Other Creative Gifts: Remainder Interest in House, Vacation Property or Farm

Another planned gift arrangement that can be very attractive for an individual or couple is the irrevocable transfer of their residence or farm to Maryville University while retaining the lifetime right to remain living in the residence or operating the farm. Such a gift can provide the donor(s) with an income tax charitable deduction for the present value of the remainder interest in the residence or farm while providing them with the enjoyment of such an asset for lifetime. If the residence or farm is generating income the donor(s) will continue to receive the income from the property. Upon the passing of the donor, or the surviving donor if it is a couple, the real property will most likely be sold and the proceeds will be used by Maryville University for the purpose stipulated in the agreement when the gift was made. Any increase in the appreciation of the property will be free of capital gain tax liability.

For more information, contact Mark R. Roock, CFRE, Director of Development, at 314.529.9674 or 1.800.627.9855, ext. 9674 or mroock@maryville.edu.  You should consult your own professional advisors before making a charitable gift.