Planned giving offers a broad range of gift-planning options that
will benefit the college and that may have financial benefits for
you as well. IT's development team is available to answer questions
and help you and your advisors structure a gift plan that meets
your goals.
Bequests
By leaving a bequest to IT, you can make a generous gift and reduce
your estate taxes without reducing your current income. Simply note
the college (and. if you wish, a specific department, program, or
existing endowment) as a beneficiary in your will. You may also
establish a special fund in your name or in memory of loved ones.
For more information about bequests, contact Kim Dockter at 612-626-9385
or dockter@umn.edu.
Retirement plan assets
In large estates, retirement plan assets are one of the most taxed
assets, subject to both income and estate taxes. Although current
tax law does not allow you to transfer these assets directly to
the college, naming the college as account beneficiary could avoid
both income and estate taxes on your account at your death.
Benefits: You retain control of these assets during
your lifetime. If your circumstances change, you can change your
beneficiary choice. Depending on the size of your estate, you may
also reduce income and estate taxes on your estate.
Life income gifts
Income-producing gifts help IT and enhance your financial well-being
at the same time. They offer a substantial charitable donation against
taxable income in the year you make the gift and continue to produce
income for you during your lifetime. The amount of your charitable
deduction is dependent on a number of factors. These income-producing
gifts also may be contributed through a will or a living trust.
For more information, contact Kim Dockter at 612-626-9385
or dockter@umn.edu.
Benefit: Each option offers a charitable income
tax deduction, and income is paid to a beneficiary. At the death
of the beneficiaries, the balance of the gift is transferred to
IT.
A charitable gift annuity ensures one or two
beneficiaries a fixed income annually for life in exchange for
a gift of money or securities. The annual income amount is determined
by the age of the beneficiaries at the time of the gift. This
type of gift appeals to many older donors.
A deferred gift annuity offers the same benefits
as a charitable gift annuity except that payments are deferred
to a future date (at least one year later). By delaying payment,
the donor may obtain a larger charitable income tax deduction
and increase the size of the annual income. This type of gift
appeals to many younger donors and is an ideal retirement planning
tool.
An annuity trust pays you or your beneficiary
a fixed dollar amount of annual income. By law, this dollar amount
must be equal to at least five percent of the net fair-market
value of the assets you transfer to the trust. You determine the
size and schedule of payments. This option is an ideal choice
for individuals who want predictable income payments.
A unitrust annually pays you or your beneficiary
a varying percentage of the trust's assets. Annual income varies
according to changes in the value of the trust's assets. The unitrust
offers market flexibility and growth, and can counteract the effects
of inflation.
Other options
Because tax laws regarding the following gift categories are complex,
please contact Kim Dockter at 612-626-9385
or dockter@umn.edu.
A retained life estate gift allows you to irrevocably
deed your personal residence or farm to IT while retaining the
right to live on the property for life. The donor is responsible
for maintenance cost, insurance, and real estate taxes. The existence
of a mortgage against the property affects this type of gift.
The donor may receive a charitable income tax deduction, based
on the property's value, donor's age, and life expectancy, of
up to 30 percent of the donor's adjusted gross income.
A charitable lead trust first pays current
income to IT for a fixed period of time, after which the remainder
is returned to either the donor or another beneficiary. For high-income
individuals, this type of gift can be structured to allow assets
to pass tax-free from one generation to another.
A gift of life insurance names the college
as owner or beneficiary of your existing or new life insurance
policy. If you name the University of Minnesota Foundation (for
the benefit of IT) as policy owner, you can take an income tax
deduction for its replacement value. If you continue to pay the
policy's premiums, you also may deduct the payments provided the
check is made payable to the University of Minnesota Foundation,
when then makes the payment.
