Legacy Giving Vehicles
In addition to leaving a bequest within your estate plan, there are other ways in which you can plan to leave a legacy at CI. Below are some other options to consider that might make good sense for your financial plan as well as your philanthropic intentions. We encourage you to read about them and ask your financial advisor (s) if one of these gift vehicles might work for you.
Charitable Remainder Trusts
With a charitable remainder trust, you can leave a legacy at CSU Channel Islands as well as:
- Transfer assets without incurring capital gains tax
- Achieve a substantial income tax deduction
- Receive an income stream for life or a set period of years
- Avoid the estate tax that will result at your death if you retain rapidly appreciating assets
A charitable remainder trust (CRT) is a form of irrevocable trust. You create a CRT by transferring cash or other assets to an irrevocable trust. The trust agreement provides that you or a specified beneficiary are to receive payments from the trust for a term of years or life. At the termination of this income interest, the assets in the trust are transferred to the charity or charities you have named in the trust agreement.
Charitable Gift Annuities
A charitable gift annuity is a combination of an investment and a gift and it provides life income to the donor (and another recipient if desired). The designated charity accepts the gift and in return obligates itself to pay a fixed and specified dollar amount to the annuitant(s) for life.
CSU Channel Islands participates in the California State University system wide annuity program. The obligation to pay the fixed return is made by the CSU system, not just CSU Channel Islands. After the beneficiary’s lifetime, CSU Channel Islands will have use of the funds.
In addition to leaving a legacy at CI, gift annuity benefits can include:
- An income tax deduction for the gift if you itemize
- Federal tax savings on a portion of the annual annuity income
- Avoiding capital gain taxes
- Avoiding estate taxes, probate, and costs on the amount involved
- Fixed payments are that do not fluctuate with interest rates
We encourage you to consult with your financial advisor (s) or speak with one of our Planned Giving Advisory Council volunteers for more detailed information.