Gifts that Pay You Income

“Gift annuities have been a win-win situation. I’ve had the pleasure of seeing years of income from one and seeing how they can impact a university from another.”   — Jean and Bill Booziotis

 


With your support of UT Dallas, you become a founder of its future — enriching the lives of its students, enhancing its curriculum and advancing its position as a leader among the best universities.

And did you know there are ways to support excellence at UT Dallas that pay you income for life? These gifts allow you the chance to stretch your giving ability and help you make a substantial gift to UT Dallas while receiving a steady income.

Set up a charitable gift annuity with a minimum of $10,000 for UT Dallas, and you can receive fixed payments for life while enjoying significant tax advantages. Interest rates paid on CGAs are usually higher than certificates of deposit and similar investments.

Your benefits include:

  • Attractive rates of return.
  • Payments made quarterly or annually.
  • All or a portion of the income may be tax-free (depending upon your age).
  • Immediate tax deduction for a portion of your gift.
  • The residual portion of the gift can be designated to UT Dallas according to your wishes.
  • Your gift to UT Dallas bypasses the estate process.

You can fund this gift with:

  • Cash. This is one of the most popular ways to set up a CGA.
  • Appreciated securities. When you fund a CGA with appreciated securities you’ve owned for more than a year, you eliminate part of the capital gains on the tax transfer.
  • Closely held stock. This asset is not easily converted to cash, but you can receive tax benefits when you use it to fund a CGA.

This chart provides example rates and charitable deductions according to age for a charitable gift annuity of $10,000:

Age 55 60 65 70 75 80 85 90
Rate 4.0% 4.4% 4.7% 5.1% 5.8% 6.8% 7.8% 9.0%
Charitable Deductions $1,850 $2,231 $2,955 $3,691 $4,267 $4,791 $5,501 $6,242

Rates effective April 24, 2017.

Set up a charitable remainder trust with a minimum of $100,000 for UT Dallas, and you can receive fixed payments for life or another term of years while enjoying significant tax advantages.

Your benefits include:

  • Providing highly flexible and customizable options for your needs and goals
  • Generating income while making an important future gift to UT Dallas
  • Potentially increasing income from the assets you donate
  • Qualifying for an immediate income tax deduction
  • Diversifying your portfolio and avoiding any capital gains tax on the assets used to fund the trust
  • Receiving professional asset management.
  • Reducing possible estate taxation.

Three ways you can receive payments with charitable remainder trusts:

  • A variable-income CRT (unitrust) pays out a percentage of trust assets, resulting in income payments that rise or fall depending on the annual value of the assets.
  • A fixed-income CRT (annuity trust) generates income that is determined at the outset and never varies.
  • A deferred CRT is a variation that accrues income for the future. This is a popular gift choice if you do not need additional income now, but want to have more in your later years with an income tax deduction now and tax-free growth while you wait.

Questions about how specific gifts can meet your unique needs and goals? Contact Kyle Edgington, vice president for development and alumni relations, at kyle.edgington@utdallas.edu or 972-883-6527.

As with all gift planning, you should consult with your tax advisor and lawyer to determine what planned gift strategy is best for your current tax situation and income requirements. Consulting estate-planning professionals will help ensure that your wishes to make a lasting impact will be fulfilled.