A living trust is just that – it’s a gift that takes place in your lifetime. It is flexible enough that you can change the terms of the trust at any time. Making Dakota Wesleyan the beneficiary of the trust remainder can reduce your estate taxes.
A gift made to Dakota Wesleyan through your will can be designated for an endowed scholarship, program or building, and any other college need. You estate will realize a 100 percent tax deduction. We can show you some examples of suggested language to cover several different types of bequests you may consider making to DWU.
Charitable Gift Annuity
This kind of gift is one of our most popular. In exchange for cash, securities, real estate or some other form of property (such as art collections), Dakota Wesleyan will pay you and/or your spouse a fixed income for life. The amount is determined by a rate schedule based on your age or a schedule based on the ages of you and your spouse. We can provide you, free of charge, with a customized scenario based on your particular circumstances. Just contact our Gift Planning office.
Real Estate Gift
You can avoid a capital gains tax on the sale of your farm or home in one of two ways. You can donate the property to Dakota Wesleyan, or you can sell it to DWU at a bargain price. The deductions will vary in either scenario, but you will qualify for an immediate income tax deduction and avoid a capital gains tax.
Retained Life Estate
You can give you home or farm to Dakota Wesleyan and continue to live there for the rest of your life. You would get a substantial income tax deduction for this kind of gift. At the same time you assure that you will spend the rest of your life in your home.
Charitable Remainder Annuity Trust
The Charitable Remainder Annuity Trust (also known as a CRAT) will pay you a fixed income annually, never less than 5 percent of the initial value in the trust. The amount paid never varies. Like the CRUT, you can set up a CRAT with cash, bonds and securities.
Charitable Remainder Unitrust
The Charitable Remainder Unitrust (also known as a CRUT) makes payments to you on a pre-set percentage which is never less than 5 percent. This payment is based on the values of the trust’s assets which is re-calculated every year. Since fair market value can cause assets to rise or reduce in value, the amount paid to you will vary. You can set up a CRUT with cash, bonds or securities.
Charitable Lead Trust
In this type of trust, the income goes first (or leading) to Dakota Wesleyan for a fixed period of time, before you or your heirs receive the remainder. There can be substantial tax savings in this type of trust, which is most suitable if you would like to provide for your family at some point in the future, but would like to help Dakota Wesleyan now.
Life Insurance Gift
Giving the ownership of a life insurance policy to Dakota Wesleyan will give you an immediate income tax deduction equal to the amount to cash surrender value. Your premium payments to DWU are a charitable gift.
Naming Dakota Wesleyan as the policy beneficiary means that the policy’s face value will be a gift in your name that is fully estate tax deductible
We can offer custom proposals based on your particular circumstance to show how a gift to Dakota Wesleyan can provide financial benefits for you.
For more information on planned giving opportunities, please contact:
Dakota Wesleyan University
1200 W. University Ave.
Mitchell, SD 57301-4396
Phone (605) 995-2612