Case Study

Perhaps you own closely held stock that you'd eventually like to give to Gustavus Adolphus College but you aren't necessarily ready to part with it today. After all, you never know when you might need it. Consider the possibilities that a gift of closely held stock in your will or trust can bring.

The following is an illustration of how this type of donation works.

Jim was no stranger to philanthropy. Each year he faithfully donated to Gustavus Adolphus College and wanted to continue his support after his lifetime. To formalize his wishes, he consulted with a local estate planning attorney, who drafted a will and revocable living trust. A specific bequest of closely held stock was included in the trust.

The Outcome
Jim passed away several years later. At the time of Jim's death, the value of the closely held stock was $1 million and his estate was subject to federal estate taxes at the rate of 40 percent. Jim's estate was able to take advantage of the unlimited estate tax charitable deduction and saved $400,000 in federal estate taxes.

The Benefits
  • Jim extended the pattern of giving he had established while he was alive.
  • Jim's favorite charity, Gustavus Adolphus College, received $1 million in closely held stock.
  • Jim's estate took advantage of the unlimited charitable deduction.
  • Jim's estate saved $400,000 in federal estate taxes.

We Can Help
To learn more about supporting Gustavus Adolphus College in the future through a gift of closely held stock, contact Jackie Peterson at 507-933-7543 or jpeters9@gustavus.edu.