Testamentary Life-Income Gifts
How It Works
- You write a will or revocable trust directing a bequest to Exeter.
- You provide that the bequest first create a life-income gift benefiting your designated recipients.
- After their income interest terminates, the remaining balance in the gift passes to Exeter to be applied to the purposes you specify.
Benefits
- One estate asset can benefit both Exeter and your heirs or other desired beneficiaries.
- Your estate will be eligible to claim a charitable deduction for a portion of the amount of your bequest.
- You can modify your bequest if your circumstances change.
Please contact us so that we can assist you through every step of the process.
Questions and Answers
What happens if my named life income beneficiary dies before I do?
If your trust beneficiary dies before you do, your will or revocable trust will include an alternate disposition you choose. For example, you can choose to have the assets first benefit a different beneficiary, or you can direct that they be distributed outright to Exeter immediately.
How large will my estate's charitable deduction be?
Your estate will be eligible to claim a charitable deduction based on the value of the trust remainder designated for Exeter. As a general rule, the older your income beneficiary and the lower the payout to that beneficiary, the higher the value of the remainder for Exeter (and your estate's deduction) will be.
How many life income beneficiaries can I name?
If you create a charitable gift annuity through your will or revocable trust, you may name up to two annuitants. If you establish a charitable remainder trust, however, you may name more than two beneficiaries. How many beneficiaries you name will be limited only by the laws governing charitable trusts – too many beneficiaries might disqualify the trust for deductibility in your estate. Your attorney will be able to advise you on this point, and we'll be happy to provide helpful information for you and your advisors.
May I designate the purposes for which the gift remainder is used at Exeter?
Absolutely. As with any life income or other gift to Exeter, you have the flexibility to designate your gift for one or more particular programs or purposes you'd like to support.
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