You can receive fixed payments for life while, at the same time, shaping Idaho’s future with transformative education. If you’re considering this kind of gift, we recommend that you consult with your financial advisor.
If you were planning to use a stretch IRA for your children or grandchildren in your estate plan before the SECURE Act, a charitable remainder trust may be the new solution for you. Contact us for details.
Charitable Gift Annuities
When you set up a charitable gift annuity for U of I, you receive fixed payments for life and enjoy significant tax advantages. In addition, interest rates on charitable gift annuities are usually more attractive than certificates of deposit (CDs) and other bank rates.
- Attractive rates of return
- Payments are made quarterly
- Depending on your age, all or a portion of the income may be tax-free
- Immediate tax receipt for a portion of your gift
- The residual portion of the gift can be designated at U of I according to your wishes
- Your gift passes to U of I outside of the estate process
You can fund this gift with:
- Cash. This is one of the most popular ways to set up a charitable gift annuity.
- Appreciated securities. When you fund a charitable gift annuity with appreciated securities that you have owned for more than a year, you eliminate part of the capital gains on the tax transfer.
- Closely held stock. This asset is not easily converted to cash but you can receive tax benefits when you use it to fund a charitable gift annuity.
Charitable Remainder Trusts
You may realize a significant benefit by transferring property to a trust that will eventually be a charitable gift for U of I. You may fund a charitable remainder trust with cash, appreciated securities, real estate, or tangible personal property.
- A partial charitable income tax deduction
- Potential for increased income
- Bypass capital gains
There are two ways to receive payments with charitable remainder trusts:
- Unitrust. The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of trust assets. The amount of your payments is re-determined annually. Your payments increase and decrease with the value of the trust.
- Annuity Trust. The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same regardless of fluctuations in trust investments.
If you have any questions or want more information about different legacy gift options, please contact Sharon L. Morgan, JD, AEP ®, senior director of Estate, Trust and Gift Planning, at 866-671-7041 or email@example.com.
As with all gift planning, you should consult with your tax advisor and lawyer to determine what planned gift strategy is best for your current tax situation and income requirements. Consulting estate-planning professionals will help ensure that your wishes to make a lasting impact will be fulfilled.