Planned Giving

Wills and Trusts

DSPT and the Western Dominican Province have partnered with FreeWill to give you a free, easy way to write your legally valid last will and testament.

One of the easiest planned gifts to make is a bequest.

Upon your passing, all (or a portion) of your estate or trust can be donated to DSPT. This allows you to:

• Use and control your assets during your lifetime
• Make a gift to charity upon your death
• Claim an estate tax charitable deduction, potentially reducing your family’s tax obligations upon your death

For your convenience, a sample bequest language is given below. Always consult your professional financial adviser before making charitable decisions.

Sample Bequest Language

Bequest of Cash

I give to the Province of the Holy Name, Inc.
the sum of $______________ to be used for the Dominican School of Philosophy and Theology.

Bequest of Property

I give to the Province of the Holy Name, Inc.
[Description of property] to be used for the Dominican School of Philosophy and Theology.

Bequest of the Complete (or Partial) Residue of Estate

I give to the Province of the Holy Name, Inc.
all [or ________% of the remainder and residue] of my estate to be used for the greatest need [or to be used for stated purpose goes here.] To the extent that my estate has items of “income in respect of a decedent” available for distribution, those items shall be allocated first to any gifts under this Will qualifying for the federal estate and income tax charitable deductions.

Though not required, it is helpful to have a copy of the page of relevant provisions from your will or trust showing the Province of the Most Holy Name, Inc. as a beneficiary.

Retirement Plans

Making gifts from your IRA, 401(k), 403(b), ESOP, or other qualified plan, can offer you some unique advantages such as:

• Avoid income and estate taxes levied on the assets left in your plan.
• Use the charitable deduction of the gift to offset other taxes.
• At 70 1/2, use a gift from the plan to meet the minimum withdrawal requirement.
• Can continue to make withdrawals from the plan during your lifetime.

Ask your plan adviser for a change of beneficiary form, and make the “Dominican School of Philosophy and Theology” a beneficiary. At your death, all (or a portion) of the assets left in your plan pass to DSPT.

Life Insurance

You can make a deferred gift to the Dominican School of Philosophy and Theology using life insurance. This may allow you to make a larger contribution than you thought possible. Benefits may include a current income tax deduction for the gift of the policy, continuing income tax deductions for periodic premium payments, removal of the insurance from your taxable estate, and the satisfaction that comes from making a gift to benefit DSPT.

Types of Insurance

• If required premium payments are made, paid-up Whole Life Insurance can make an excellent gift as there is a cash buildup as well as a death benefit.
• Term Life Insurance is rarely used to make a charitable gift as the policy doesn’t provide an internal cash buildup or any benefits other than payment of the face value upon death.
• If you make DSPT the owner of your policy, you may be eligible for an income tax deduction for the gift of the policy. And any annual gifts made to the School to pay future premiums will qualify for an income tax deduction.
• You can also make a gift of a “paid-up” life insurance policy, which can either be cashed in by DSPT immediately, or held to receive the benefits at a later date.
• Life Insurance policy gifts can be transformational, used for major projects, advancing important programs, or starting endowments.

Benefits

Making a gift of your life insurance policy can:

• Allow you to make a low-cost gift to charity, one that doesn’t adversely affect your cash flow.
• Make a larger gift to charity than you may have thought possible.
• Enjoy an immediate income tax deduction for the cash value of a surrendered policy.

Ask your plan adviser for a change of beneficiary form, and make DSPT a beneficiary or owner of your life insurance policy.

Real Estate

Real estate can be donated even while you continue to use it, and can offer significant savings on your taxable estate. Appraisals are needed, and unfortunately, not all properties can be accepted.

Real estate can also be transferred through what’s called a “Bargain Sale”.

How a Bargain Sale Works

You sell DSPT your property for a price less than fair market value. You receive the cash from the sale and a charitable deduction for the difference between the fair market value and bargain sale price. While you may owe some tax on the amount you receive from the sale, the charitable deduction from your gift could offset your taxes this year.

Benefits of a Bargain Sale

If you are considering selling your property, a bargain sale will help you meet your goals. Bargains sales can:

• Avoid capital gains tax on your charitable gift.
• The deduction from your gift will give you valuable tax savings that may reduce your tax bill this year.
• With the cash received from the sale, you may then reinvest to create more income for your future.