Charitable Lead Trusts
This may be the best option for donors who wish to benefit the
University in significant ways while passing substantial assets on
to heirs. With a charitable lead trust, you transfer assets which
provide dividends to the University for a period of years until the
trust terminates. At that time, the principal is returned to
you or distributed to your heirs at greatly reduced gift and tax
rates.
Please consult with an attorney or
financial advisor on transferring your assets to the
University.
Charitable Remainder Trusts
Charitable remainder trusts (CRTs) provide for two sets of
beneficiaries (you or someone you designate) where you receive a
set percentage of income for your lifetime from the trust; and
St. John’s, where the University receives the principal of the
trust at the end of your lifetime or the term of the trust.
The best part is that you get to direct how the principal is
used and, because these assets are destined for a charity, CRT
owners do not pay any capital gains taxes on the assets used to
fund the trust. So, CRTs are ideal for assets like stocks or
property with a low cost basis but high-appreciated value.
Charitable Gift Annuities
A gift annuity is an agreement whereby a donor makes an
irrevocable contribution of capital to the University in exchange
for guaranteed payments for life (or the life of another person) at
a specified rate. Payments are fixed for life and, depending on
age, a portion of the income may be tax free.
For additional information on gift planning, contact Susan
Damiani Kissane, Director of Gift Planning, at (718) 990-7562 or
e-mail damianis@stjohns.edu