Estate and Planned Giving
When you participate in a U-M planned giving program designated to Kinesiology, you will contribute to the excellence of our teaching and research efforts for generations to come. Your gift can also provide financial and tax benefits for you, your heirs and others you care about. There are a number of ways that you can contribute to Kinesiology through a planned giving program, highlights of which are described below.
Please Note: For further details on planned giving, you may contact Jim McIntyre, Director of Development, at (734) 615-4272 or via email at mjmcinty@umich.edu. You may also refer to the university website at www.giving.umich.edu/howto/. The web site has several comparison charts that will assist you in evaluating the best giving option for you.
Bequests
A bequest is a transfer of property or assets by will -- for example, cash, stocks, bonds, real estate, works of art or antiques -- to an individual or to a charitable organization such as U-M Kinesiology.
Benefits
- Provides a lifetime of generous giving to U-M Kinesiology.
- Make a larger gift than might have been possible during your lifetime.
- Receive an estate tax deduction, which reduces the taxable portion of your estate and the estate's tax liability.
There are several types of bequests:
- Specific: You bequeath cash or specific assets to Kinesiology. The bequest may be stated as a fixed amount or as a percentage of your estate.
- Residual: You direct that Kinesiology receive your entire estate or the remainder after payment of other bequests and estate-related expenses.
- Contingent: You name Kinesiology as the beneficiary of your estate if others named in your will are not living at the time of your death.
- Testamentary trust: A provision in your will establishes a trust upon your death to provide lifetime income to your spouse and/or other beneficiaries, after which the trust assets are given to Kinesiology.
- Other: By a beneficiary designation made apart from your will, you may also designate Kinesiology as the beneficiary of your IRA, 401(k) or other retirement plan.
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Life Income Agreements
Life income agreements provide a stream of income and an income tax charitable deduction. These attractive giving methods provide immediate tax deductions and capital gains savings, plus you are making a deferred gift to Kinesiology for the future.
- Charitable gift annuity: A charitable gift annuity provides fixed
income for life and is easy to establish. Through this giving method, you
will be able to meet both your financial needs and your philanthropic goals.
Establishing the annuity requires a minimum gift of $10,000.
- Current gift annuity: A current gift annuity provides immediate payments
and qualifies for a current year tax deduction.
- Deferred Gift Annuity: A deferred gift annuity allows you to defer
payments to a time when you need secure income, such as retirement. Even though
you delay your annuity payments, your gift will qualify for a current year
tax deduction. A deferred gift annuity may be created at any time, but payouts
do not begin until age 50 or later, as designated.
Charitable Lead Trust
The benefit of a charitable lead trust is that it involves little or no estate
or gift tax costs to your heirs, as well as possible generation-skipping transfer
tax savings. The lead trust offers one of the best opportunities to preserve
substantial assets for your children, grandchildren or others while also giving
to Michigan. A living lead trust is in effect during your lifetime. A testamentary
lead trust goes into effect at the time of your death.
Charitable Remainder Trust
The charitable remainder trust provides income to beneficiaries for life or for a term of years, after which the trust remainder is distributed to Kinesiology and/or other charitable organizations. Establishing the trust with the University as trustee requires a minimum $100,000 irrevocable gift funded with cash, stocks, bonds or real estate.
- The charitable remainder unitrust provides variable income based on the annual market value of the trust, which is attractive to individuals willing to risk a decrease in income in order to have the opportunity to increase income.
- The charitable remainder annuity trust provides fixed income, which is attractive to individuals who prefer the security of a fixed income.
Retirement Assets Options
Because retirement assets are subject to both income and estate taxation, they are usually the best assets to give to U-M at the time of your death, while cash or appreciated securities may be better assets to give to your heirs. If your IRA, retirement or other qualified plan passes through your estate, your heirs must pay income taxes as they receive distributions. In contrast, U-M Kinesiology, as a tax-exempt organization, would receive 100% of the retirement assets.
Donor Pooled Income Fund
The Donor Pooled Income Fund has been established to enable friends of the University to make tax-deductible gifts to the University of Michigan, while retaining or giving to another the right to receive for life a proportionate share of the income earned by the Fund. The U-M becomes the fund asset manager. Upon the death of all individuals named as beneficiaries by the donor, the donor's participation in the Fund will be used for the University as the donor can designate.. An initial gift of $10,000 or more is required for participation.
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