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  • 1.  Irrevocable Planned Gift but Revocable Beneficiary

    Posted 11 days ago

    Hi All,

    We've been discussing the nuances of irrevocable planned gifts with our Accounting team and I'd love a bit of feedback to share. Can you confirm that in a situation where we are the revocable beneficiary for an irrevocable planned gift the gift should not be recorded as an irrevocable planned gift to the university in either Advancement or Accounting?

    Also, beyond looking for terms such as "vested" in the beneficiary documentation, or confirming that the agreement does not permit the charitable beneficiary designation to be amended, is there any other language or documentation we should look for when determining whether the gift is truly irrevocable?

    Thank you in advance for your help!



    ------------------------------
    Rachel Ellis
    Point Loma Nazarene University
    rellis2@POINTLOMA.EDU
    ------------------------------


  • 2.  RE: Irrevocable Planned Gift but Revocable Beneficiary

    Posted 10 days ago
    While such an instrument is legally bindingand allows the donor to claim a deduction, a nonprofit cannot count it at anytime until then proceeds are realized. Nothing is guaranteed to you. It does, however, suggest that your gift officer communicate regularly with the donor as they could one day change that language.

    As for language to look for, there is no universal standard. Irrevocable is always a good word to find!

    Revocable trusts will often say things like "The grantor may revoke, alter, or amend," or "reserve power to change."

    Irrevocable language includes "The grantor expressly waives any right to amend or revoke," or "cannot be altered, modified, or terminated."

    John


    John Taylor Principal, John H. Taylor Consulting, LLC 919.816.5903 Big ideas; small keyboard





  • 3.  RE: Irrevocable Planned Gift but Revocable Beneficiary

    Posted 8 days ago
    Thank you, John! This is very helpful!

    Rachel E. Ellis

    Executive Director of Advancement Services
    Point Loma Nazarene University
    (619) 849-2600
    rellis2@pointloma.edu







    Original Message


  • 4.  RE: Irrevocable Planned Gift but Revocable Beneficiary

    Posted 8 days ago
    With regards to language, if a lawyer wants to make irrevocability clear, they just say it plainly. You should not have to do any guesswork or spelunking or parsing. And if they haven't made it clear... well, there's usually a reason for that too.  


    Thank you,
    Isaac Shalev
    President
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


  • 5.  RE: Irrevocable Planned Gift but Revocable Beneficiary

    Posted 8 days ago
    That is a great point. Thank you for the advice!

    Rachel E. Ellis

    Executive Director of Advancement Services
    Point Loma Nazarene University
    (619) 849-2600
    rellis2@pointloma.edu







    Original Message


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