The Educational Foundation can accept planned gifts and will serve as life insurance beneficiary of any deferred gift that requires the appointment of a fiduciary. Depending on the choice of giving arrangements, donors can expect some or all of the following benefits:
- Income-tax savings through the charitable deduction for the value of the gift.
- Avoidance of the capital gains tax on contributions of certain kinds of property that have appreciated over time.
- Income for life for the donor and/or other beneficiaries.
- The possibility of increased spendable income with certain arrangements.
- Elimination of estate tax on the value of a gift passing to charity upon the donor’s death.
- Reduced estate settlement costs.
The Educational Foundation accepts the following types of planned gifts: Bequests, Charitable Lead Trusts, and Charitable Remainder Trusts.
A bequest is a gift of any amount or form made to the Educational Foundation in a donor’s will. Bequests play a vital role in Oakton’s future. Although the Foundation hopes not to receive your gift for many years, sharing your plans will enable us to acknowledge your thoughtfulness and generosity during your lifetime. You also will have the assurance that your gift and its designated use are understood by the College.
The type of bequest most appropriate for your situation can be determined by consulting with your attorney and/or financial advisor. Bequests may be made in the following ways:
- Specific Bequest. Stipulates an amount, a percentage, or particular securities or other assets.
- Residual Bequest. States that all or a portion of your estate be given after specific amounts are distributed to other beneficiaries.
- Contingent Bequest. Directs that your assets be distributed if your primary heirs do not survive you.
The following language is recommended when making a gift to the Educational Foundation through your will:
- Specific Gift Language
I give to the Oakton Community College Educational Foundation (FEIN #36-2917302), located in Des Plaines, IL, the sum of $___________ (or asset) to be used for its general support (or for the support of a specific fund or program).
- Residual Gift Language
I give to Oakton Community College Educational Foundation (FEIN #36-2917302), located in Des Plaines, IL, all (or state a percentage) of the rest, residue, and remainder of my estate, both real and personal, to be used for its general support (or for the support of a specific fund or program).
- Contingent Gift Language
If (insert name) is not living at the time of my demise, I give to Oakton Community College Educational Foundation (FEIN #36-2917302), located in Des Plaines, IL, the sum of $ _______ (or all or a percentage of the residue of my estate) to be used for its general support (or for the support of a specific fund or program).
Charitable Lead Trusts
With a charitable lead trust, the Foundation receives the “lead interest” payments annually, and the donor or their family members receive the assets (remainders) of the trust when the trust is terminated. As a specialized estate planning tool, the charitable lead trust offers effective benefits if the donor has substantial estate and gift tax liabilities. By establishing a charitable lead trust, the donor is able to make a significant gift to the Foundation, derive satisfaction from seeing the Foundation use the gift, enjoy tax savings, and transfer the trust assets to subsequent generations with reduced estate, inheritance, and gift taxes. Another important feature of this trust is avoiding probate on remaining assets. Most importantly, a donor can choose the form these trusts may take, can be the trustee, and can stipulate the amount to be paid to the Foundation. Additional contributions can be made to charitable lead trusts without having to create a new trust.
Charitable Remainder Trust
One of the most effective estate planning tools is the charitable remainder trust (CRT). An irrevocable tax-exempt trust, a CRT comprises two parts: income interest and remainder interest. For a designated period (e.g., the joint lives of the grantor and spouse), the income from the trust is paid to the grantor or the grantor’s heirs. At the conclusion of the designated period, the remaining trust assets become the property of the named charity or charities. Although the trust is irrevocable, the charitable beneficiary/beneficiaries of the trust can be changed by the donor during the term of the trust. CRTs have many advantages and are highly flexible. Some of the benefits of a CRT include:
- Current income tax deduction
- Reduced estate taxes
- Avoidance of capital gains
- Increase of current income
- Increased value of assets transferred to heirs
- Creation of a charitable legacy
For more information on planned giving, contact the Educational Foundation at 847.635.1893.