The year 2012 is an ideal time for alumni and other friends to establish "life income" gift arrangements such as charitable gift annuities and charitable remainder trusts. The concept is simple: Donors can make major gifts, keep income for life for themselves or others, and enjoy important tax advantages, including charitable gift deductions and payments that are taxed under favorable rules. The tax rewards of giving continue to be highly attractive in 2012, but incentives could decline in future years, based on recent tax proposals.
Charitable gift annuities are the oldest and most popular plan for assisting UT Arlington while keeping a lifetime income. Payments are fixed on the date of the gift, based on the age or ages of the income recipients. Donors can contribute appreciated securities they have owned more than one year for charitable gift annuities and minimize capital gains taxes, as well. Our office would be pleased to provide you with an illustration of all the benefits of a charitable gift annuity for your situation, including payout amounts and deductions for one-life and two-life arrangements.
Charitable remainder trusts offer friends the ability to custom-design a gift plan that makes either fixed or variable payments to individuals they select (often the donor and the donor's spouse). The University receives whatever remains when the trust comes to an end. The charitable remainder unitrust offers the most flexibility for donors and generally the best tax advantages, including large charitable deductions and avoidance of capital gains taxes when the trust is funded with stocks or other appreciated assets. Other benefits can include:
• Increased income for your family
• Favorably taxed payments
• Diversion of income to a family member in a low tax bracket
• Estate tax savings
• Avoidance of gift tax
• Professional investment of your funds
• A hedge against inflation
• Reduced estate settlement costs
• Meaningful support for the University.
For more information on life income gifts, just call our office.
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IRS Circular 230 Notice: The University of Texas Arlington does not provide legal, tax or financial advice. Consequently, we urge you to seek advice of your own legal, tax or financial professionals in connection with gift and planning matters. This communication is not intended to be used and cannot be used for the purpose of avoiding tax-related penalties.