Estate Gifts

Perhaps the easiest and most common way of making a planned gift is through your will. Yet over half of Americans do not have one. If you die without a will, the state will divide your assets in a way in which may not be to your choosing. Additionally, the state makes no charitable contributions, and failure to plan will ensure that your estate pays as much tax as possible.

By making a will, you appoint your own administrator; you minimize applicable taxes; you can create a family or charitable trust; and you can share your resources with your family, fraternity, or other organizations as you choose. A bequest in a will can take the form of a set amount of money, a percentage of an estate, a specific asset, a trust, or the naming of the Fraternity as a contingent beneficiary.

Sample language for including Theta Chi Fraternity in your estate might be:

“I give, devise, and bequeath (state amount, asset, or percentage of the estate) to the Foundation Chapter of Theta Chi (Tax ID: 21-4014559) to be used in the area of greatest need as the Foundation Chapter Board of Directors deems appropriate.”

Did you know you could make a meaningful planned gift to the Foundation Chapter of Theta Chi while receiving income for the rest of your life?

Naming the Foundation Chapter of Theta Chi as a primary or secondary beneficiary for various retirement accounts will provide meaningful support for our future brothers. For an IRA, 401(k), TIAA-CREF account, and many other types of retirement accounts, you can often go online to your account and name the Foundation Chapter of Theta Chi as a beneficiary. Beneficiary designations and “transfer on death” accounts may be handled outside of the probate process; they are often distributed before the assets in the will – a much simpler and quicker process than waiting for the entire estate to settle.

Appreciated IRAs can be one of the most costly assets to transfer to heirs. Even if the estate doesn’t hit the minimum for paying estate tax, IRAs may be a tax-deferred asset, meaning that your heirs may get hit with a big income tax bill in the year they receive the inheritance. It may be better to leave the remainder of the IRA, and other tax- deferred assets, to the Foundation Chapter of Theta Chi. Consult a tax adviser for details.

Contact the Foundation Chapter’s professional staff at 317-848-1856 for more information on Charitable Remainder Trusts and Pooled Income Funds.

Life Insurance is another way to make a sizeable gift to the Foundation Chapter of Theta Chi. For example:

1. You can purchase a new policy and make the Foundation Chapter of Theta Chi the owner and beneficiary of the policy. This enables you to “leverage” your gift, ultimately making a much larger gift than otherwise possible.
2. You can make the Foundation Chapter of Theta Chi the owner and beneficiary of an existing policy. Contributions to the Foundation Chapter of Theta Chi to pay the ongoing premiums may be tax deductible. The current value of the policy also may be tax deductible, as are future premium payments.
3. You can make the Foundation Chapter of Theta Chi a contingent beneficiary of an existing policy or name the Foundation Chapter of Theta Chi to receive the proceeds of the policy if the designated beneficiaries predecease the insured. Also, the remainder value of many retirement accounts can be heavily taxed when left to friends and family but may pass tax-free to the Foundation Chapter of Theta Chi upon your passing. Before planning, you should always consult a legal and/or tax advisor.

You may contribute real estate by listing the Foundation Chapter of Theta Chi as the beneficiary of a specific property. This may reduce estate taxes and also benefit the Fraternity with a true tangible gift.

Gifts of appreciated real estate or securities may allow you to avoid capital gains taxes, if the transfer of said assets to the Foundation Chapter of Theta Chi occur prior to selling it. However, if the securities or real estate have decreased in value, you may sell the assets before making the gift, thus potentially establishing a capital loss and a potential tax deduction. Please consult a tax adviser.

Gifts of tangible personal property, such as jewelry, coins, works of art, automobiles, etc. may also be given to the Foundation Chapter of Theta Chi. You are responsible for setting an appraised value on the gift. Any gift over $5,000 must be independently appraised.