If you are frustrated by the extremely low interest rates offered on bank accounts and CDs, perhaps it is time to consider funding a Charitable Gift Annuity with Hamilton. For someone age 72, such a gift would provide an annual payment (for life) of 6% and a tax deduction amounting to about 1/3 of the principal. If funded with cash, most of the annual income will be tax-free.
— A member of the Class of 1961
Hopefully, most of us in our "Senior Years" have some sort of estate planning program to provide for our family and other beneficiaries. I have made such provisions and would like to share the following information. First, find a good estate planner and consider a Charitable Remainder Trust (CRT). Our planner set up a CRT for us several years ago before we sold the majority of our rather extensive coin collection. Our goal was to channel the bulk of the proceeds to our children.
To illustrate, my wife and I established a CRT, contributed the coin collection to the trust and named ourselves as trustees so we could control the sale of our collection. Since the CRT is a tax-exempt entity, no capital gains tax was due on the sale of the coins. Further we made an illiquid, non-income producing asset productive.
We then named several not-for-profit organizations - including Hamilton, churches and other schools - as remainder beneficiaries of the CRT.
In order for our heirs to receive money as well, we purchased a sizeable life insurance policy on both my wife and me with a portion of the income from the CRT. The death benefit will be payable to our children tax free. My wife and I also receive a nice quarterly check from the CRT. It is truly a win-win-win situation for our children, the charities, and my wife and me.
— A member of the Class of 1956
A member of the Class of 1943 and his wife embraced gift planning by completing three gifts — an outright gift to establish a scholarship, as well as a Charitable Gift Annuity and a Charitable Remainder Annuity Trust (CRAT) to augment it — using these gift options to benefit Hamilton and achieve personal philanthropic goals.
On the occasion of his 50th reunion they completed a Charitable Gift Annuity. Six years later using highly appreciated stock owned jointly they funded a CRAT allowing them to achieve considerable capital gains tax savings. Recently, upon the death of the survivor, Hamilton added $168,000 to the endowed fund. The original gift to the CRAT was just over $110,000 and during the 12 years the trust was in existence it paid them $99,000. Charitable trusts build Hamilton's endowment in a significant way while providing the donors with tax savings and quarterly payments. The gift annuity had similar results for Hamilton and the donors.
Their son, also a Hamilton alumnus, continues to make annual gifts to the scholarship that carries the family name in perpetuity.
Hamilton makes a number of resources available to you, including the following: