1. Planned Giving

2. While Annual gifts and Major gifts are given “outright”, Planned gifts are established in a way that is typically fulfilled after a term of years or following the passing of one or more individuals. What Is a Planned Gift?

3. A planned gift to LMU is a gift designating LMU as the beneficiary (or one of the beneficiaries). A planned gift may be made either as a revocable or irrevocable gift, and each type has different advantages and implications for both the donor and LMU. What Defines a Planned Gift at LMU?

4. Just like Major gifts, Planned gifts fund:  Capital Projects such as new residence halls  New technology for classrooms  Endowed academic chairs  Endowed academic scholarships  Endowed faculty development funds  Many other areas! What Do Planned Gifts Fund at LMU?

5. What is the Process that Leads to a Planned Gift? 1. Identify Values and Giving Priorities 2. Consult with your tax advisor Ask yourself: “What programs or facilities do I want to support at LMU?” Ask yourself: “What kind of giving plan is best for my specific situation?” 3. Work with University Advancement at LMU to initiate your gift

6. Part I: The “Revocable” Planned Gift A revocable gift, such as a will provision, designates LMU as the beneficiary of an estate, trust or other instrument. Advantages: Can be changed or revoked at any time by the donor Disadvantages: Does not provide immediate tax benefits for the donor, and may incur legal fees

7. 1. The Will Provision  A will is a legal document directing the distribution of your assets at your passing  Making a bequest to LMU can simply be through a clause added to an existing will  Many people decide to bequeath a percentage of their assets, rather than a specific dollar amount  Did you know over 50 percent of Americans do not have a will? Do you? Types of Revocable Planned Gifs

8. 2. The Revocable Living Trust  A Trust is a giving instrument in which funds are invested, managed and dispersed by a trustee according to the wishes of the donor  A revocable trust may be altered at any time  Because of this, it offers greater flexibility for the donor but may also be subject to taxation  A living trust offers greater privacy than a will (which is public record) Types of Revocable Planned Gifts

9. 3. Insurance and IRA Beneficiary Designations  Many people name LMU as the beneficiary of an insurance policy or a retirement fund  Recent tax law changes provide additional benefits for charitable IRA retirement rollover gifts  As always, it’s important to consult your tax professional for guidance in your specific situation 3. Insurance and IRA Beneficiary Designations  Many people name LMU as the beneficiary of an insurance policy or a retirement fund  Recent tax law changes provide additional benefits for charitable IRA retirement rollover gifts  As always, it’s important to consult your tax professional for guidance in your specific situation Other Types of Revocable Planned Gifts

10.  Revocable gifts are flexible - they can be changed at any time  A revocable gift does not transfer assets until the death of the donor (or other condition). Because of this, there is no immediate tax deduction  A revocable giving instrument like a living trust can protect your wishes and often avoids probate  Revocable gifts are flexible - they can be changed at any time  A revocable gift does not transfer assets until the death of the donor (or other condition). Because of this, there is no immediate tax deduction  A revocable giving instrument like a living trust can protect your wishes and often avoids probate Summary of Revocable Planned Gifts

11.  Unlike a revocable gift, an irrevocable gift represents an immediate transfer of assets using a variety of methods  Because of this, there is an immediate charitable tax deduction for the donor  There are several ways to make an irrevocable planned gift to LMU:  Unlike a revocable gift, an irrevocable gift represents an immediate transfer of assets using a variety of methods  Because of this, there is an immediate charitable tax deduction for the donor  There are several ways to make an irrevocable planned gift to LMU: Part II: The Irrevocable Planned Gift

12. 1. The Charitable Gift Annuity A Charitable Gift Annuity, or CGA, is a popular and powerful way to support LMU  A gift annuity is a contract between LMU and a donor, in which LMU agrees to pay a fixed amount in exchange for a transfer of cash or other property  A CGA’s annuity payments are guaranteed, no matter how the stock market performs  A two-life CGA may pass to one additional person before being ultimately distributed to LMU  A CGA provides an immediate tax deduction based on the “remainder” interest at the end of the annuity’s life A Charitable Gift Annuity, or CGA, is a popular and powerful way to support LMU  A gift annuity is a contract between LMU and a donor, in which LMU agrees to pay a fixed amount in exchange for a transfer of cash or other property  A CGA’s annuity payments are guaranteed, no matter how the stock market performs  A two-life CGA may pass to one additional person before being ultimately distributed to LMU  A CGA provides an immediate tax deduction based on the “remainder” interest at the end of the annuity’s life

13. Some donors choose to establish more elaborate giving arrangements that provide for additional family members and/or multiple charities. While there are many variations of irrevocable trusts, the most common categories are outlined here.  Trusts can be funded by cash, stock, real estate or other assets  Since they are irrevocable gifts, they provide an immediate tax deduction, and they also allow the transfer of assets to bypass capital gains taxes  Some trusts can provide for up to eight persons before ultimately being distributed to LMU or other charities  Trusts offer privacy for an estate, and pass directly to beneficiaries without probate Some donors choose to establish more elaborate giving arrangements that provide for additional family members and/or multiple charities. While there are many variations of irrevocable trusts, the most common categories are outlined here.  Trusts can be funded by cash, stock, real estate or other assets  Since they are irrevocable gifts, they provide an immediate tax deduction, and they also allow the transfer of assets to bypass capital gains taxes  Some trusts can provide for up to eight persons before ultimately being distributed to LMU or other charities  Trusts offer privacy for an estate, and pass directly to beneficiaries without probate 2. The Irrevocable Trust

14. Charitable Remainder Trusts Two popular types of irrevocable trust are the CRAT (Charitable Remainder Annuity Trust) and CRUT (Charitable Remainder Unitrust)  The CRAT makes a fixed annuity payment, while the CRUT returns a percentage of total assets within the trust  Both types of trusts can provide for multiple beneficiaries with many levels of flexibility  Both types of trusts offer an immediate tax deduction, and bypass capital gains taxes Two popular types of irrevocable trust are the CRAT (Charitable Remainder Annuity Trust) and CRUT (Charitable Remainder Unitrust)  The CRAT makes a fixed annuity payment, while the CRUT returns a percentage of total assets within the trust  Both types of trusts can provide for multiple beneficiaries with many levels of flexibility  Both types of trusts offer an immediate tax deduction, and bypass capital gains taxes

15. Charitable Lead Trust The “reverse” of a Charitable Remainder Trust:  A Lead Trust makes payments to charity during the trust’s term with the remainder passing to the donor or another beneficiary  Like a remainder trust, the lead trust offers an immediate tax deduction and bypasses capital gains taxes. The “reverse” of a Charitable Remainder Trust:  A Lead Trust makes payments to charity during the trust’s term with the remainder passing to the donor or another beneficiary  Like a remainder trust, the lead trust offers an immediate tax deduction and bypasses capital gains taxes.

16. Is a Planned Gift Right For You? Every gift to LMU is ultimately about supporting the mission of LMU and helping our students achieve success. Planned giving provides donors with a way to make a substantial gift to LMU in a way they might not otherwise have been able to do. Is a planned gift right for you? Contact the Division of University Advancement to find out more about planned giving today!