A Gift Plan for Mary C.
Mary C. is a recent widow, an environmentalist, and a member of the class of 1957. She wants to make a significant 65th reunion gift in support of the Green Fund.
Mary has a sufficient stock and bond portfolio to maintain her current life style. However, she intends to spend carefully so that she can leave an inheritance to her two children.
A $100,000 charitable gift annuity is an appealing way for Mary to support Wellesley.
At her age, 86, she will receive an annuity rate of 7.8% or $7,800 per year for the rest of her life notwithstanding fluctuations in the stock market.** This is a higher return than she would most likely receive from her stocks, bonds, CDs, or savings accounts. Mary thinks of this annual income as her “entertainment and travel fund,” money she can count on and might not otherwise have spent.
Mary’s financial advisor explains that, because this is a charitable gift, she will also receive some significant tax benefits from this gift.
- She will be entitled to a federal tax deduction for a portion of her gift.
- A portion of her annual income from the annuity will be tax free.
- She will receive estate tax savings, and
- Because she is contributing appreciated securities, she will receive capital gains savings as well.
Wellesley will recognize Mary’s gift in several appealing ways.
- If she makes this gift before June 30, 2022, she will receive reunion gift credit for $100,000, the entire amount of her gift.
- She will become a member of the Durant Society.
- She will join the Wellesley Legacy Society which offers special access to College events and updates.
- She will have the pleasure of directing her gift to environmental causes through the Green Fund.
The process is easy. Mary contacts the Gift Planning Office at 718-283-2235 or giftplanning@wellesley.edu to request a personalized illustration. Her financial advisor helps her transfer $100,000 of appreciated securities to the College. She and the College sign a simple charitable gift annuity agreement and Mary receives guaranteed income for the rest of her life.
Mary is pleased that, though this gift plan, she has helped herself and her alma mater as well.
** The payout rate may differ for New York State residents.
Helen Colson
A Gift Plan for Jane H.
Jane H. received generous financial aid as a Wellesley student. Now she wants to make a significant 65th reunion gift to Wellesley so that others, who cannot afford the entire tuition, also can be offered a Wellesley education. However, she and her husband need all of their assets and the income from their assets to support them during their retirement years.
The solution is a bequest in her will.
Her bequest to Wellesley:
- Will not reduce Jane’s assets or income during her lifetime. She will continue to control and use her assets for living expenses and other costs, and
- Her estate will receive a tax savings from an estate tax charitable deduction for the date of death value of the bequest.
Jane has decided to bequeath a fixed amount of $100,000 to Wellesley, if she survives her husband. She and her husband have agreed that, if he survives her, he will add the $100,000 bequest to his will.
Alternatives, which may appeal to other alumnae, include:
- A bequest leaving an entire estate, or a specified portion of an estate remaining after making provisions for a surviving husband and children.
- A bequest of a specified valuable tangible personal property (for example, a work of art) or real property (for example, a mortgage free vacation home).**
- Designating Wellesley as the entire or partial beneficiary of an insurance policy, an IRA, or other retirement plan.
Wellesley will recognize Jane’s gift in several appealing ways:
- If she makes this gift before June 30, 2022, she will receive reunion gift credit for the entire amount of the bequest.
- She will become a member of the Durant Society.
- She will join the Wellesley Legacy Society which offers special access to College events and updates.
- She will have the pleasure of knowing that her gift will help future Wellesley students.
The process is easy. Jane downloads and completes a Bequest Intention for Gift Credit Form. She consults her lawyer who prepares a codicil naming Wellesley as the legatee of $100,000. When she mails that form and a copy of the codicil to Wellesley by May 20, 2022, she will receive reunion gift credit for her gift. Questions: Contact the College’s Gift Planning Office or gift planning @Wellesley.edu.
** All testamentary gifts of real property or tangible personal property require pre-approval by the College.
Helen Colson
A Gift Plan for Sally L.
Sally L. would like to make a generous reunion gift to Wellesley. She has ample income thanks to a substantial lifetime pension benefit funded by the corporation for which her deceased husband worked. Her savings are modest.
Sally owns a $300,000 whole life (cash value) life insurance policy on her life. It was originally acquired for the benefit of her three children. However, the children are now financially independent and no longer need this protection. The policy is paid up; future premiums are not required to keep the policy in force.
After consulting her accountant and Wellesley, which must pre-approve a gift of a life insurance policy, Sally decides to give the life insurance policy to the College as a reunion gift. As a result:
- Sally will receive an immediate income tax deduction.
- The gift will reduce the size of her estate.
- Upon Sally’s death, Wellesley will receive the full $300,000 death benefit.
An alternative to giving the policy to Wellesley is to designate Wellesley as the beneficiary. Sally will not receive a charitable income tax deduction. However, she will retain full control of the policy during her lifetime and Wellesley will receive the insurance proceeds at her death.
Wellesley will recognize Sally’s gift in several appealing ways:
- If she makes this gift before June 30, 2022, she will receive reunion gift credit for the entire amount of the $300,000 death benefit.
- She will become a member of the Durant Society this year.
- She will join the Wellesley Legacy Society which offers special access to College events and updates.
- She will have the pleasure of knowing that her gift will help future Wellesley students.
To get started, Sally contacts her insurance agent to ask for a change of beneficiary designation form. She provides a copy of this form to Wellesley. To receive pre-approval of her gift and if she has questions, she contacts the College’s Gift Planning Office at 718-283-2235 or at giftplanning@Wellesley.edu.
Sally is pleased that, through this gift, she has helped both her alma mater and herself.
*To determine her deduction, she consults her tax professional.
Helen Colson