As a part of Lincoln Christian’s ministry to churches, alumni, and friends of LCU, we provide complete, accurate, and up-to-date estate planning services.
Through Estate Planning Seminars held in churches and through individual appointments, our staff is available to assist you in creating an estate plan that will help carry out your wishes for the distribution of your assets during your life and at your death.
For more information on the services offered by the estate planning department, email or call Tim Searby at 217-732-3168, ext. 2343. Download a copy of the Estate Planning Guide and Estate Planning Questionnaire.
Planned gifts are a way for you to benefit yourself and leave a legacy that can continue giving in perpetuity. Some of the benefits of Planned Gifts include:
- Assure that the mission of LCU will always be carried out.
- Provide a stream of income to you and/or your spouse for life or a time determined by you.
- Receive an income tax deduction for the charitable gift as determined by IRS tables.
- Help you avoid estate taxes and capital gains taxes.
Various types of planned gifts include charitable gift annuities, charitable remainder trusts, charitable lead trusts, and real estate. Descriptions follow below. Please consult your personal financial advisors before completing any planned gift.
Charitable Gift Annuities
With low interest rates and an unpredictable stock market, many have found an LCU charitable gift annuity to be a smart alternative for providing future income. A gift annuity is a simple agreement between you and Lincoln Christian University. To establish a gift annuity, you make a gift of cash or appreciated assets to LCU. We invest the asset and, in return, provide you (and if you so desire, another person) fixed income for the rest of your lives. When the final income recipient is deceased, any remaining funds are available for the use of LCU.
The income payments on a charitable gift annuity may begin immediately or may be deferred to a future date. The dollar amount of the fixed payment is determined by your age and when you begin to receive the income payments. Because a charitable gift annuity agreement is partly a charitable gift and partly the purchase of an income stream, the donor receives an immediate charitable income tax deduction, and part of each annuity payment may be tax-free. If appreciated assets are used to fund the gift annuity, donors can defer capital gains taxes.
To determine how you can benefit from a charitable gift annuity, email or call Tim Searby at 217-732-3168, ext. 2343.
Charitable Remainder Trusts
When you create a charitable remainder trust, you give cash or other assets to a trust that you create that will, in turn, pay you (or other beneficiaries) an income for life or for a period of years (not to exceed 20). At the death of the final beneficiary, the remaining balance in the trust is transferred to LCU.
The income stream that is provided by the remainder trust can be based on a fixed percentage or a fixed dollar amount. A charitable remainder unitrust will pay you a fixed percentage of the fair market value of the trust assets each year for the rest of your life. The payout percentage never changes and would be no less than five percent. A charitable remainder annuity trust pays a fixed dollar amount every year, based on the value of the trust assets at the date of the gift.
Creating a charitable remainder trust may increase your annual income and will provide you with an immediate charitable income tax deduction. You will also have the satisfaction of knowing that you have provided a substantial future gift to LCU. The assets in the remainder trust are not subject to probate, not accessible by creditors, and not included in the donor’s taxable estate.
Email or call Tim Searby at 217-732-3168, ext. 2343 for further information and a free charitable remainder trust scenario.
Charitable Lead Trust
Charitable lead trusts work in the opposite way of charitable remainder trusts. When you create a charitable lead trust, you give cash or other assets to a trust that provides a charity with an income stream for a defined period. At the end of that period, the remaining trust assets and any growth are transferred to your heirs.
As with remainder trusts, charitable lead trusts may provide either a fixed payment (a charitable lead annuity trust) or a fluctuating payment (based on a percentage of trust assets).
A charitable lead trust would give a property’s current income interest to LCU for a determined number of years. The principal at the end of the trust term would go to family or whomever you select. Through a lead trust, the donor is able to benefit the charity immediately, transfer assets to family members with tax-free appreciation, and depending upon the terms of the trust, receive income, gift or estate tax savings.
Email or call Tim Searby at 217-732-3168, ext. 2343 for further information and a free charitable lead trust scenario.
Remainder Interest in Personal Residence or Farm (Life Estate Reserved)
A gift of a remainder interest in your home or farm allows you to gift property to LCU and retain the right to use that property for life. You continue to live in the property and provide maintenance, taxes, and insurance, but at your death (and the death of your spouse, if married) the property passes to LCU. This type of gift is ideal for the donor who wants to give his or her farm or home to LCU, but also wants to live there for the rest of his or her life.
You receive a charitable income tax deduction based on your age and the value of the property. When your home or farm does eventually pass to LCU, it does so outside of any estate taxes.
To determine how all the benefits from a life estate reserved arrangement, email or call Tim Searby at 217-732-3168, ext. 2343.