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Support
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> FAQ's
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FAQs - Ways to Partner
What
type of scholarship support does the Seminary give to its
students?
Through
the generosity of our donors every student who demonstrates
need may receive up to a 100% tuition scholarship. While
living expenses are also a major consideration, this tuition
aid is a true blessing to our students. In addition, a limited
number of merit scholarships help cover living expenses.
How
can I honor my former pastor during my lifetime when I don't
have excess funds available at this time in my life?
You
may make a "life-income" gift, such as a charitable
gift annuity or charitable remainder unitrust. This will
guarantee an income for life for the beneficiary, with the
remainder going to the Seminary at his or her death.
I'm
concerned about the heavy bite that taxes will take out
of my IRAs if I leave them to my children. Is there a way
to leave these assets to the Seminary while still providing
for my children?
Yes,
you may name Louisville Seminary as a beneficiary of your
IRA. This will avoid estate and income taxes, both of which
will be taken from the proceeds if left to your children.
You can replace these funds with life insurance which is
taxed more favorably when the proceeds are paid to your
surviving children.
What
is the effect of an endowment fund now…and in the future?
Income
from an endowment fund, up to about 6% per year, is used
to provide benefits each year. This income may support ongoing
annual expenses or any of a number of donor-specified needs,
such as scholarship aid, lecture series, and library resources,
among others.
Since
the amount of income used each year (also known as the "spending
rate") is only a portion of the target income earned
on the endowment, it continues to grow so that the income
used each year grows as well, in perpetuity. Thus, an endowment
provides both for the present and for the future.
How
much is needed to establish a named endowment fund?
A
gift of $10,000 is sufficient to establish an endowment
fund named for the person you wish to honor. Smaller gifts
may be added to existing endowment funds.
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FAQs - Gifts of Real Estate
If
you are someone who has been thinking about making a gift
to Louisville Seminary, you may wish to consider a gift
of real estate. It may not be practical for you to make
a gift of cash or securities at this time. However, a gift
of a vacation home, a farm, commercial property, or parcel
of undeveloped land may bring benefits to you as well as
providing a major gift for the Seminary.
Q.
What is the advantage of making a gift of real estate to
Louisville Seminary?
A.
Besides having the satisfaction of making a substantial
gift to the Seminary, you will avoid any capital gains tax
on the asset's appreciation and you will be entitled to
an income tax charitable deduction equal to the full fair
market value of the property, less any outstanding mortgage.
The property will also be removed from your taxable estate.
Q.
Is Louisville Seminary interested in having me leave real
estate in my will?
A.
Yes. However, we would be most appreciative if you would
discuss it with us before including a bequest in your will.
Q.
Is it possible for me to give my house or farm to Louisville
Seminary now and continue to live there?
A.
Yes. There are income and estate tax advantages to those
individuals who wish to make a gift in this manner. You
would deed the house or farm to the Seminary with the understanding
that you (and your spouse) would be able to live in the
house for as long as you wish. It would be necessary for
you to still maintain the residence and pay the property
taxes. After your lifetime (and your spouse's) or whenever
you decide you no longer wish to live there, the Seminary
will be free to sell the property and use the proceeds for
the purpose you designate.
Q.
If I were to give real estate to the Seminary, could I receive
an income for life in addition to gaining tax benefits?
A.
Yes. If you transferred the title of your real estate to
Louisville Seminary, the Seminary would sell the property
and invest the proceeds in income producing assets. In return
for the transfer of your property, the Seminary will help
you establish a Charitable Remainder Unitrust (net income
with make-up provision) with you as the donor and the income
beneficiary. The Unitrust would provide tax benefits and
income for you and one or more beneficiaries.
Q.
Why would I use a Net Income with Make-up Provision Unitrust
with a gift of real estate?
A.
You would use this type Unitrust because it would protect
you and the Seminary in the event the property was not sold
immediately. The Unitrust would provide for the payment
of a fixed percentage (at least 5%) of the net fair market
value of the asset on January 1 each year, or, in the event
the property was not sold, the Unitrust would pay the actual
net income for the year with a make-up provision. Additional
benefits of this type Unitrust are:
1.
An unlimited number of beneficiaries may be named as long
as they are over 50 years of age.
2.
A charitable deduction based on the ages of the beneficiaries
and the agreed upon rate of return.
3.
Donors are free of tax on capital gains in gifts of appreciated
property
4.Gifts
may be added to a Unitrust.
Q.
If I were to make a gift of real estate to establish a Charitable
Remainder Unitrust with Louisville Seminary, what would
be involved?
A: It would involve:
A.
Establishing the value of the real estate through the
services of two qualified, independent real estate appraisers.
The gift would be valued at the average of these two appraisals.
The donor will be given credit for that gift amount, and
will be sent an IRS Form 8282 upon the sale of the real
estate within two years.
B.
The appraisers' signatures on IRS Form 8283, made not
earlier than 60 days prior to the gift/investment.
C. A survey of the property.
D. An environmental check of the property.
E. An indication of marketability.
F. A letter of intent.
G. Review and acceptance by the Finance Committee of
Louisville Seminary's Board of Trustees.
H.
Real estate will be accepted to fund a net income charitable
remainder trust to a ceiling of 6%.
For
more information:
Write, call, or visit
Dale Melton, Associate
Vice President of Seminary Relations
Louisville Presbyterian
Theological Seminary
1044 Alta Vista Road, Louisville, KY 40205
502.895.3411, ext. 347
e-mail: dmelton @lpts.edu.
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FAQs - Gift Annuities
Q.
What is a charitable gift annuity?
A:
It is an agreement under which a donor transfers cash, securities
or other assets to Louisville Presbyterian Theological Seminary
for the benefit of the Seminary. In return, the Seminary
promises to pay an annuity, or fixed dollar amount, to one
or two annuitants for as long as they live. The amount of
the payment to be received is determined by the age and
number of annuitants at the time the gift is made.
Q.
Who is eligible to make a gift in this way?
A:
Anyone age 50 or over who wishes to make an irrevocable
gift of $3,000 or more qualifies for a charitable gift annuity.
Q.
How much income does the annuitant receive each year?
A:
The payout rate for a Louisville Seminary gift annuity depends
on the number of income recipients and their ages.
Current payout rates for a one-life annuity:
| Age |
Payout
rate |
Annual
Income on
$10,000 annuity |
| 50 |
5.3% |
$530 |
| 55 |
5.5% |
$550 |
| 60 |
5.7% |
$570 |
| 65 |
5.9% |
$590 |
| 70 |
6.5% |
$650 |
| 75 |
7.1% |
$710 |
| 80 |
8.0% |
$800 |
| 85 |
9.5% |
$950 |
| 90
and over |
11.3% |
$1,130 |
The rates are somewhat lower for a two-life gift annuity.
Q.
What are some of the benefits in making a charitable gift
annuity?
A:
1. Satisfaction - You are assured the lifetime joy
of helping enlarge and strengthen the vital mission of Louisville
Seminary.
2.
Guaranteed Life Income - You receive an attractive
income guaranteed for life at an annual rate from 5.3% to
11.3% depending on your age(s).
3.
Tax advantages - You receive substantial tax benefits
including a charitable deduction (if you itemize), tax-free
income, capital gains and estate tax savings.
4.
Security - A Louisville Seminary gift annuity is
professionally invested and is backed by all the assets
of the Seminary. You are freed from burdensome investment
decisions while being provided with maximum safety.
5.
Flexibility - Your gift annuity may be created with
cash or securities and may be for any specified amount.
Q.
Do I need a lawyer to make this gift?
A.
It is usually a good idea to consult your financial and/or
legal advisors when making a large gift. However, you do
not need a lawyer to draft the gift annuity contract since
the Seminary provides the standard agreement form.
Q.
How can I get an estimate of benefits that would come to
me if I were to make a gift/investment in a charitable gift
annuity?
A.
Dale Melton, Associate
Vice President of Seminary Relations at Louisville Seminary,
would be pleased to tell you the income amount and tax benefits
you could expect from a gift annuity.
Or
use the online gift calculator to estimate the earnings
of your gift annuity
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1044 Alta Vista Road - Louisville, Kentucky 40205 - (800) 264-1839 - (502) 895-3411
- FAX (502) 895-1096