Invest in the Future of St. Thomas University

Many people like to leave a legacy of support to the causes that mean the most to them with a gift through their will or trust, or other type of planned arrangement. These gifts, known as planned gifts, are usually, though not always, fulfilled after your lifetime.
A legacy gift to St. Thomas University places us among your family and friends. We’re honored and humbled to be held in such esteem.

Maximize Your Philanthropic Impact
By making a legacy gift at St. Thomas University, you will have a deep impact on future students and help guarantee the University’s success. With careful planning, you can also increase the size of your estate and/or reduce the tax burden on your heirs.

There are many ways to leave a legacy.
A planned gift is a unique opportunity for you to pass on your values and create a lasting legacy for St. Thomas University programs that are most meaningful to you. These gifts also provide a way for you to achieve certain charitable and financial goals, and may yield certain federal tax advantages. Some planned gifts can even give you an income throughout your lifetime. Although most planned gifts come from wills, other options include trusts, life insurance, retirement assets, real estate, and securities. Some examples are highlighted below.

Legacy through your Will
Once your loved ones are provided for, we hope you’ll consider including St. Thomas University as part of your estate planning. Your gift will be used to develop the values of community and faith of St. Thomas University students. A legacy gift to St. Thomas University places us among your family and friends. We’re honored and humbled to be held in such esteem.

Gifts in a Will

Throughout our history, many people have included St. Thomas University in their estate plans. A will, or bequest is one of the simplest ways to make a planned gift. Here are some variations of a simple will you may want to consider.

General bequest: Is a gift in your will or living trust, typically personal property or assets.

Residual bequest: Is a percentage of the remainder of your estate after other specific legacies have been fulfilled.

Specific bequest: Is a specific dollar amount or stated fraction of your estate. It can also be a specific asset like art, books, collections, jewelry or any other valuable you wish to give.

Contingent bequest: Is a stated share of your estate, but only in the event of the prior death of other named beneficiaries.

Sample Language for a Will

To support St. Thomas University with your will or living trust, or to designate us as a beneficiary of a qualified retirement plan or other financial account, simply provide your advisor with the following information:

The following language may help you and your attorney when drawing up a bequest that meets your needs.

“I give and devise to St. Thomas University (Tax ID #59-0949880), the sum of $___________ (or asset) for its unrestricted use and purpose (or for the support of a specific fund or program).”

Gifts by Beneficiary Designation

Gifts by beneficiary designation are also among the easiest gifts to make. Just contact the firm that holds your assets and ask them for a beneficiary form to fill out.

Retirement Plan Gift: Retirement funds are important investments, and many people choose to name charitable organizations as final beneficiaries to reduce taxes and to further a cause they believe in. To name St. Thomas University as a beneficiary of your retirement plan, contact your bank or insurance company and ask them for a beneficiary form

Life Insurance Plan Gift: A gift of life insurance is an affordable way to make a significant gift to the college while also enjoying tax savings during your lifetime. Benefits include:

Savings Bonds: Like any appreciated asset, leaving appreciated bonds to your loved ones means they will owe income tax when they cash the bonds, and potentially estate taxes. Since St. Thomas University is tax-exempt, naming us the beneficiary of these bonds will ensure that 100 percent of their value will advance your cause.

CDs, Bank and Brokerage Accounts: A simple way to support St. Thomas University is naming us as the beneficiary of a certificate of deposit, a checking or savings bank account, or a brokerage account.

Donor Advised Fund Residuals: We hope you will consider naming St. Thomas University as a “successor” of your account. Or, you can name the college as the successor for a portion of the account value, leaving the remaining portion for your loved ones.

Always consult with your tax advisor and attorney to determine what planned gift strategy best fits your current tax situation and income requirements needs.

Gifts that pay you back

Charitable Gift Annuity (CGA): A charitable gift annuity is a contract between a donor and St. Thomas University, whereby the donor transfers cash or property to St. Thomas University in exchange for a partial tax deduction and a lifetime stream of annual income from St. Thomas University.

  • Very attractive rates of return.
  • Depending on your age, all or a portion of the income will be tax-free.
  • Immediate tax receipt for a portion of your gift.
  • The residual portion of the gift can be designated according to your wishes.
  • Your gift passes to STU outside of the estate process.

Charitable gift annuities (CGA) can be funded with cash or with other assets. You can begin receiving payments now or defer them. You can also have payments made to another individual for their life.
You can maximize the gift’s potential by funding your CGA with appreciated stock you have owned for over a year. You will receive an immediate income tax deduction and avoid capital gains tax on a portion of the gift.
Always consult with your tax advisor and attorney to determine what planned gift strategy best fits your current tax situation and income requirements needs.

Charitable Remainder Trusts (CRT): Support St. Thomas University and earn income for you and your loved ones. A charitable remainder trust (CRT) enables you to preserve or improve your financial security and make a gift.
Transferring property to a trust that will eventually be a charitable gift to St. Thomas University can have very favorable benefits.

  • Gift is made during your lifetime or created through your will.
  • Tax savings are realized with a charitable gift receipt.
  • May permit gifting over time.
  • Your gift is protected from challenge by other potential beneficiaries.
  • Could result in favorable tax treatment of certain capital gains properties.

Always consult with your tax advisor and attorney to determine what planned gift strategy best fits your current tax situation and income requirements needs.

Gifts that Reduce Your Taxes

There are many strategies to help reduce your taxes while supporting St. Thomas University

Charitable IRA Rollover: If you’re 72 or older, you must take out your Required Minimum Distribution* (RMD) each year from your IRA. A Charitable IRA Rollover to St. Thomas University satisfies your RMD and reduces your taxable income!

* Congress has waived the annual Required Minimum Distribution from IRA Accounts in the year 2020 as part of the CARES Act in response to COVID-19. Please consider seeking advice from your financial advisor or tax professional to understand how recent changes to laws governing retirement plans may impact you and your charitable gift.

Retirement Plan Gift: Did you know a full 60 to 70% of your retirement assets may be taxed if you leave them to your heirs? Leave other assets like real estate and stock for your heirs and use retirement assets to create your legacy gift. St. Thomas University is not taxed when receiving retirement assets.
Benefits:

  • Avoid potential estate tax on retirement assets.
  • Avoid income tax for your heirs on retirement assets funded on a pre-tax basis.
  • Receive potential estate tax savings from an estate tax deduction.

Contact your bank or insurance company to see whether a change of beneficiary form must be completed to name St. Thomas University as a beneficiary.

Gifts of stock: Highly appreciated stocks, bonds, mutual funds and savings bonds are among the best ways to make a gift. You may receive a charitable income tax deduction for the full market value of the stock and avoid paying the capital gains tax on any increase in the value.
Benefits:

  • Reduce income tax.
  • Reduce income tax and estate taxes for your loved ones.
  • Create your lasting legacy with St. Thomas University.

For more information, please email George Cruz, Planned Giving Officer, at jorgecruz@stu.edu. Thank you for your support.