Estate & Planned Giving
What is Planned Giving?
Planned giving is a means by which you can make a considered choice about how you want to use your assets now and after your death. It usually involves financial or estate planning; however, it is not reserved for the wealthy. We would be happy to work with you and your financial and legal advisors if you are interested in leaving a legacy at Southeastern Illinois College through planned giving. Alumni and friends who make a planned gift are recognized as members of our Heritage Society.
Some of the benefits of planned giving at Southeastern Illinois College include:
- Financial support of SIC
- Tax savings for you
- Income for you and your family
- Lower estate taxes after your death
You can make a planned gift using:
- Securities (i.e., stocks, bonds)
- Tangible Personal Property (i.e., art, jewelry)
- Real Estate
- Retirement Assets (i.e., IRA)
- Life Insurance
Securities, real estate, or tangible personal property can be excellent ways of making a gift to Southeastern Illinois College. You do not pay federal capital gains taxes if you transfer appreciated property to SIC. It is important to transfer appreciated property before selling it. However, if property has decreased in value, you should sell the assets before making the gift, thus establishing a capital loss and potential tax deduction.
George purchased stock in 1985 for $250. The stock is now worth $1,000, which is approximately the same amount that George would like to give to the Southeastern Illinois College Foundation. If George gives the stock to Southeastern Illinois College instead of cash, the College receives a gift of $1,000- the fair market value of the stock - and George can claim a $1,000 charitable deduction on her next income tax return. In a 35% bracket, that is a tax savings of $350. Furthermore, George avoids $113 in capital gains taxes that would be due whenever she sold the stock. The result: After figuring the tax savings, a gift of $1,000 costs George only $537.
When her parents pass away, Sally decides to donate their home to Southeastern Illinois College rather than sell the home herself because her financial advisor warns her that she will have to pay significant capital gains tax on the home by selling it. Instead, she establishes a charitable trust with the College and gives her parents' home to the trust. The trust then sells the property, avoids capital gains tax and uses the money to pay Sally annual income for the rest of her life. Also, at the time Sally makes this gift, she has owned the property for one year and thus is entitled to an income tax deduction equal to the fair market value of the house. (If she sold the house before owning it for one year, she would still be entitled to a tax deduction, but it would be limited to the amount that her parents paid for the home when they originally bought it.) Upon Sally’s death, the remainder of the trust becomes a gift to Southeastern Illinois College.
Information on the various planned giving programs here at Southeastern Illinois College is available by following the links on the left. If you would like to speak with someone about any of these options, please contact our office.
*The information contained on this website is intended as general educational material, not financial or legal advice. You should consult your own tax or legal advisor to determine how the concepts discussed on this site apply to your circumstances.