Estate Gifts

Map of lands in the Tultepec and Jaltocan regions, Mexico. 1569.
Map of lands in the Tultepec and Jaltocan regions, Mexico. 1569. Ayer MS 1801, map #1 (Vault).

Your estate—the assets you have accumulated during your lifetime—may include real estate, stocks, bonds, business investments, retirement plans, collections, other personal property, and anything else you own. Through a carefully constructed estate plan, you can make arrangements to ensure your assets are distributed according to your wishes after you are gone.

By making plans now, you can have an impact on the future of your family, your friends, and the organizations you care about. Often, you can make a larger gift to the Newberry through your estate than you might have thought possible.

The Blatchford Society has been established by the Board of Trustees to recognize and honor those people who have provided for the Newberry through their estate plans.

Following are some of the ways you can plan for the distribution of your estate:

Wills and Bequests

A will is simply a set of instructions that specifies how you would like your estate to be distributed. Without a will, your estate will be distributed in accordance with the applicable laws of the state and may not express your interests and wishes.

A bequest is a gift from a will. If you wish to make a bequest to charity through your will, simply state in the document that you wish a specific amount or a specific percentage of your entire estate to be donated to one or more individuals or charitable organizations.

Charitable Gift Annuity

A charitable gift annuity is a contract in which you exchange a gift of cash or securities for a guaranteed, fixed income each year for the rest of your life. Your gift annuity offers five distinct advantages

  • Income for Life - at attractive payout rates for one or two lives
  • Tax Deduction Savings - a large part of what you transfer is a deductible charitable gift
  • Tax-Free Income - a large part of your annual payments are tax-free return of principal
  • Capital Gains Tax Savings - when you contribute securities for a gift annuity, you minimize any taxes on your “paper profit”
  • Personal Satisfaction - from making a gift of lasting significance.

Trusts

A trust is a fund composed of assets, held by a trustee for specific beneficiaries.

Living Trusts

This trust is established during your lifetime and avoids probate. Your heirs will then have access to your estate without the delays caused by the probate process. When you set up a living trust, you transfer ownership assets from your estate to the trust. The trust then becomes the owner of these assets. You can transfer real estate, stocks, bonds, retirement plans, or anything else you own. Any person, including you, your spouse, or an institution can be named a trustee and manage your trust.

Charitable Lead Trust

With a charitable lead trust, your gift is placed in a trust fund and one or more charitable organizations receive income from the investment income of this trust fund. Upon death, your heirs will receive the principal gift that you donated to establish the trust fund. If you have significant assets, this reduces your estate tax liability.

Charitable Remainder Trusts

With this type of trust, you can donate highly appreciated assets such as stock to a charity, save on taxes, and receive a life income for yourself and a beneficiary such as your spouse. Upon the death of the last beneficiary, the gifted asset goes to the charity.

Wealth Replacement Trust

With this trust you establish a charitable remainder unitrust and use a portion of the income from the trust to buy a life insurance policy on yourself. The life insurance benefit passes on to your heirs—effectively replacing your charitable gift and avoiding probate and estate taxes for your heirs. This arrangement ensures an estate for your heirs and helps your favorite charity.

Testamentary Trusts

This type of trust takes effect upon death. The terms of a testamentary trust are written directly into your will. Your estate, however, will go through probate before assets are transferred. Establishing a trust during your lifetime will ensure that your estate will avoid probate.

If you wish to learn how you can leave a legacy at the Newberry, contact Sarah Alger at (312) 255-3544 or algers@newberry.org.