SWMFPhotostrips5

 

BEQUESTS

One of the simplest and most meaningful gifts you can make to benefit the work of UT Southwestern Medical Center is a bequest—a gift through your will or trust. Since your will bestows security beyond your lifetime to the persons and charitable organizations you wholeheartedly cherish, maintaining an up-to-date will is the basis of sound, worry-free planning for the future of your family. Bequests are an appealing and significant way to support the missions of Southwestern Medical Foundation.

CHARITABLE GIFT ANNUITIES

A charitable gift annuity is a contract between an individual and Southwestern Medical Foundation, whereby in exchange for a gift of cash or stock, the individual will receive a guaranteed income for life.  The amount of the income is based upon the age of the donor—the older the donor, the higher the income paid.  Gift annuity rates are typically higher than most other types of fixed-income investments, such as certificates of deposits and stock dividends.

The annuity is guaranteed by the full assets of Southwestern Medical Foundation.  Payments may continue through the life of the donor and one other person, most typically the donor’s spouse.

CHARITABLE REMAINDER TRUSTS

One of the more flexible types of planned gifts is the charitable remainder trust (CRT).  This trust creates a source of income for yourself and family members for a period of time, and then, the trust principal will go to Southwestern Medical Foundation for the benefit of UT Southwestern for the charitable purpose you have designated.

The charitable remainder trust can be tailored to meet very specific personal financial objectives.  You can decide who will receive income and how much income they will receive.  You also decide the timing of when and for how long those payments will be made.  Finally, you can select the charity or charities who will receive the trust principal at its termination.

There are several tax advantages to establishing a charitable remainder trust.  When you establish a charitable remainder trust, you will be entitled to a federal income tax charitable deduction.  If the trust is funded with long-term appreciated securities or real estate, capital-gains tax will be avoided when the trust sells the securities.  You may also receive an estate-tax deduction for all or a portion of the assets placed in the trust.

Charitable Remainder Unitrust (CRUT)

A charitable remainder unitrust pays a variable amount of income based upon a fixed percentage of the trust’s assets, revalued each year.  This provides the possibility of increased income from year to year if the trust’s assets grow more than the amount of income paid to you.

Charitable Remainder Annuity Trust (CRAT)

If having a fixed income is important to you, you may consider a charitable remainder annuity trust.

CHARITABLE LEAD TRUST

Often, people are conflicted between the desire to make a meaningful charitable gift and the desire to leave a generous inheritance to their children and grandchildren.  The charitable lead trust allows a person to accomplish both of these goals.

Through this special, tax-advantaged trust, called a non-grantor charitable lead annuity trust,

UT Southwestern will receive income from the trust for a defined period of years, and then, when the trust terminates, the principal will be distributed to family members.  The charitable lead trust will generate significant gift and estate tax savings and allow assets to be passed to family members at little or no cost.

RETIREMENT PLAN ASSETS

Assets in private and public qualified retirement plans total almost $10 trillion, with individual retirement accounts (IRAs) accounting for one-quarter of that amount.  Such plans are extremely popular because they are funded with pre-tax dollars and provide for tax-deferred growth of funds, which are taxed upon distribution.

Retirement plan assets are great sources of retirement income, but are less attractive assets to pass on to children and grandchildren as an inheritance.  This is because at the death of the participant the assets are subject to both income and estate taxes, resulting in family members receiving, in many cases, less than half of the retirement fund assets.

The good news is that retirement plan assets make wonderful gifts to leave to charity at death because they pass tax-free to the charitable organizations of your choice.  Consider using all or a portion of your retirement plan assets to benefit UT Southwestern and designate other assets to your children and other family members.

If your objectives include making significant charitable gifts at your death, you may want to consider funding those gifts from retirement plan assets.

LIFE INSURANCE

You can create a legacy of giving by naming UT Southwestern Medical Center or Southwestern Medical Foundation as the owner and beneficiary of a new or existing life insurance policy. By converting a minimal investment into a profound donation to the future of medicine, life insurance provides a way of making a greater impact than most people might be able to afford during their lifetimes. Life insurance is an extremely flexible asset and may be used in many ways to satisfy your charitable objectives.

BENEFITS

  • You provide a wonderful gift to UT Southwestern in the future at little cost to yourself today.
  • You receive a charitable income tax deduction for future premiums paid.
  • You receive a charitable deduction for the replacement value of the policy.
  • You avoid estate tax on the policy’s face amount if you maintain no rights of ownership in the policy.

RETAINED LIFE ESTATE

You may irrevocably deed your home, vacation home, or farm to Southwestern Medical Foundation and reserve the right to live in the home and enjoy the property for the rest of your life and the lifetime of a survivor, should you wish.  This type of gift is called a retained life estate and generates significant income tax savings to the donor.

At the end of the retained life estate, the property will be owned by Southwestern Medical Foundation and will be sold to accomplish your charitable goals.  If you are thinking of a bequest of your home, you may want to consider a retained life estate as a way to receive a substantial income tax savings now and make an irrevocable gift to benefit UT Southwestern.

To learn more about making a planned gift to Southwestern Medical Foundation, contact Randy Daugherty, Director of Planned Giving, at 214-648-3069 or email him at randal.daugherty@utsouthwestern.edu.

To learn more about giving to Southwestern Medical Foundation, contact Alexandra Sizemore, Director of Donor Relations, at 214-351-6143 or email her at asizemore@swmedical.org.

To ensure that philanthropy merits the respect and trust of the general public, AFP and other fundraising organizations declare that all donors have the following rights. Download the Donor Bill of Rights (PDF)