These are usually funded with cash or marketable securities. This plan is usually suggested as a hedge against inflation. Variations of this agreement permit deferral of income while maintaining present tax benefits. This trust is especially attractive when funded with real estate or other illiquid assets. This arrangement can produce favorable estate and gift tax benefits to the donor while providing immediate income to the college.
Principal remains under the control of the donor until catastrophic illness or death.
The trust then becomes irrevocable and a gift can be made at that time. Each of the trust arrangements described above can be used to make a gift to Canisius College. Their primary function, however, is to provide security and flexibility of planning to a donor. Canisius College can also act as a trustee, which may reduce administrative costs.