Trust Provides Benefit to Future Students, Peace of Mind to Bailey

Frances and Selden Bailey smilingSelden Bailey came to Dothan in 1948 and decided the Wiregrass city was where he wanted to stay to raise his family.

Today, it's the commitment that he feels to the community and Troy University's dedication to molding young minds that led him to establish a charitable remainder trust through the University's planned giving program.

That trust will benefit the University by providing scholarships for deserving students; but until that time, it will also provide a stream of income for the Baileys.

Through a charitable remainder trust, the donor or their designated beneficiaries receive a specified fixed percentage of the full market value of the trust's assets, as determined annually.

"My wife is automatically the trustee. She is my primary responsibility," Bailey said. "At her demise, as much as $200,000 will go to scholarships supporting TROY and advanced education."

The funds have been designated for students who take part in the University's ROTC program.

"I am interested in the discipline that the military offers to young people," Bailey said. "It is my hope that these scholarships will encourage young people to get a broader understanding of the world and further their educations through an advanced degree."

Bailey said the fact that his wife, Francis, won't have to face decisions concerning the financial matters is another benefit of a charitable annuity trust.

"It is a tremendous relief to have the strength and integrity of Troy University managing this trust and knowing that Francis will not have to worry about making those decisions," Bailey said. "I also feel a commitment to the community. I have had a good life, and I am glad to have the opportunity to give back to an area that has been good to me."

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A charitable bequest is one or two sentences in your will or living trust that leave to Troy University a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I, [name], of [city, state, ZIP], give, devise and bequeath to Troy University [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to Troy University or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Troy University as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Troy University as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and Troy University where you agree to make a gift to Troy University and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

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