Planned Giving
A Lasting Legacy Through Planned Giving
Planned gifts give back, allowing you to take sizable income, capital gains, and estate deductions on your taxes. They can provide income for you and your family for life. In addition, planned gifts can be much larger than other gifts, so you can leave a legacy that fits your philanthropic goals.
Bequests
Bequests are the most common and simplest way to give to Huston-Tillotson University. A bequest is a gift – of any amount – that is made through a donor’s will. Donors may include Huston-Tillotson University in their wills by simply naming the school for a specific dollar amount (legacy), specific asset or percent share of their estate. Donors may also name HT as the residual beneficiary of their estates after the payment of bequests to others.
Donor-Advised Fund
A Donor-Advised Fund, or DAF, is a giving account established at a sponsoring organization or public charity. It allows donors to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from the fund over time. Donors can contribute to the fund as frequently as they like, and then recommend grants to Huston-Tillotson University, or other charitable organizations whenever it makes sense for them. Common sponsoring organizations include Schwab Charitable and Fidelity Charitable.
Gift Annuities
A gift annuity agreement provides contributors who donate cash, securities, real estate or personal property with fixed annual payments for a specified period of time. Donors who choose a deferred gift annuity will begin making the annual payments at a time specified by them. Gift annuities are beneficial for donors who want to receive income from assets that have increased in value, such as cash or stocks. In exchange for gifts of such assets, donors are guaranteed a lifelong fixed annual income and avoid capital gains tax; in addition to an income tax break on a portion of the earnings from an annuity; the exact amount depends on their age.
Charitable Lead Trusts
Charitable lead trusts mostly appeal to wealthy donors who want to pass along appreciated assets to their heirs at a reduced gift or estate tax cost. These trusts allow Huston-Tillotson University to receive income from the donor’s assets for a specified time, after which the asset is returned to the donor/donor’s heirs who do not have to pay any additional taxes.
Charitable Remainder Trusts
Two basic types of charitable remainder trusts – unitrust and annuity – allow you to qualify for federal tax benefits while receiving income from your stock, cash or other assets. Once you give your assets to a trust, those assets are invested, producing income for you – or another beneficiary – for either a fixed period of time or your lifetime. You may claim a tax deduction for the estimated portion of the assets that will ultimately come to Huston-Tillotson University. At the end of the trust period, HT keeps all remaining assets.
Life Insurance
Give the gift that keeps on giving by naming Huston-Tillotson University the irrevocable owner and beneficiary of a life insurance policy. Below are several convenient ways to use a whole or universal policy as a charitable gift. Contributing a paid in full policy that you no longer need does not diminish your current income and may provide you with an income tax deduction for the replacement value of the policy. Your gift may also save you substantial estate taxes. You may also contribute a policy that is not paid in full and take a deduction for the “cash surrender value” of the policy. You would continue to make gifts – deductible charitable contributions – to HT to pay the premiums. You may fund a Charitable Remainder Unitrust for your spouse with life insurance. The premium payments would be partially tax deductible and the trust would provide income for your spouse after your death.
Personal Property or Real Estate
Huston-Tillotson University welcomes gifts of tangible property that further Huston-Tillotson’s educational endeavors which the University would otherwise need to purchase. Gifts of real estate can generate significant tax benefits for donors and eliminate problems that come with the settlement of estates. The gift can be for a fractional interest in the property or the entire property. Donors often transfer their property to a trust that generates income for them for life, then on to Huston-Tillotson after their death.
Click for a Listing of Financial Professionals (For Information Only)
View the Year in Review for more about Huston-Tillotson University. https://online.flippingbook.com/view/815217566/
Disclaimer
Huston-Tillotson University, its employees, and representatives do not offer legal or financial advice nor do they endorse individuals or companies to offer financial advice. List of financial professionals is for information only. Prospective donors should consult with an attorney, financial advisor, estate planner or accountant before making arrangements.
Linda Y. Jackson, Vice President for Institutional Advancement | 512.505.3111 | lyjackson@htu.edu.
