Gifts That Pay You Income

Receive an Income from Your Gift

"I will give away my apple tree, so long as I (or someone I choose) can keep the fruit the tree produces, every year, for life." That's the very simple concept behind a special category of gifts known variously as "deferred" gifts, "planned" gifts or "life income" gifts. These gifts enable you to make a gift of significance, receive a partial tax deduction and yet keep an income for life for you or others. The income can be fixed or variable. Depending on how your gift is arranged, you can plan for:

• Increased income for your family;
• Capital gains tax avoidance;
• Minimized taxes on your income;
• Increased income at retirement;
• Diverting of income to someone in a low tax bracket;
• Gift tax and estate tax savings; Professional management of your funds;
• A hedge against inflation; Reduced probate costs;
• Provide college funds for grandchildren.

Charitable Gift Annuity

A gift annuity is a simple, contractual agreement between you and the charity in which you give assets in exchange for a promise by the charity to pay one or two annuitants, payments for life. The size of the payments is calculated based on your age when the gift is made. The older the annuitant is, the larger the payments will be.

There can be income tax, capital gains and estate tax benefits to establishing a gift annuity. Please contact your financial advisor and the Director of Gift Planning if you are interested in a charitable gift annuity. The minimum gift amount is $5,000. You can choose:

• how frequently payments will be made
• one life or two lives
• cash or securities to fund your gift

Cash gifts allow maximum tax-free payments; gifts of securities allow you to minimize capital gains taxes.

Charitable Remainder Trusts

When you create a charitable remainder trust, you give money, securities or other assets to a trust administered by the University of Texas System that will then pay you an income for life or for a period of years (not to exceed 20). If you wish, the trust also can pay an income to one other beneficiary of your choice. At the death of the final beneficiary, the remaining balance in the trust goes to The University of Texas at Arlington and/or its Schools and Colleges. The minimum to establish a charitable trust is $50,000. The minimum age of the youngest beneficiary is 55 years old. Trust income to the donor is based on the following: Ages 55 -79 – 5%; Ages 70-79 – 6%; Ages 80 and above – 7%
Please contact your financial advisor and the Director of Gift Planning, UT Arlington if you are interested in establishing a Charitable Remainder Trust.

Call us before you sell and reinvest securities or real estate, or "roll over" low-yield certificates of deposit. We can help you plan a life income gift that is right for you, your family and our organization.