Testamentary Life-Income Gifts: The Details

Is this gift right for you?

A gift of testamentary life-income is for you if…

  • You want to make a significant gift to Pomona College but must also provide for family.
  • You are looking for tools to reduce the tax liability your estate will bear.
  • You want to direct income to a special-needs family member, to an employee or caregiver, or to beneficiaries who do not need a large outright bequest.

A testamentary life-income gift adds additional flexibility to your estate plan. You can provide that your estate will fund a charitable gift annuity, charitable remainder unitrust or charitable remainder annuity trust at your death. You make the provisions in your will or revocable trust, and they are carried out by your executor or trustee and Pomona College.

Your estate will receive a charitable estate tax deduction for the gift, based on the value of the transfer minus the value of the beneficiaries' income interest.

The result? You help Pomona College while also benefiting children or other heirs, making one asset do the work of two. You potentially lower the estate tax burden on your estate. You also gain flexibility in making special provisions for your heirs, either by providing additional resources for an individual or by limiting that individual to a life income rather than a large outright bequest.

Important considerations

  • As with any bequest, a testamentary life-income gift is a revocable, future transfer. You receive no income tax deduction for the gift you are planning now.
  • Your estate will be eligible to claim an estate tax charitable deduction based on the gifts remainder interest designated for Pomona College.

Please contact us so that we can assist you through every step of the process.