Types of Planned Gifts

Legacy or "planned" gifts have always played a vital role in shaping this institution. Indeed, without the leadership and generosity of Charles Stewart Mott, the Mott Foundation and others, the University of Michigan-Flint's legacy of transforming individual lives would be profoundly different.

Establishing a gift within your own financial and estate plan requires careful thought and consideration with your own attorney, accountant, or financial advisor. Our staff is ready to work with you and your advisor in confidence and without obligation to help you explore the best possible method of giving for your circumstance.

The University of Michigan-Flint's continued ability to develop future generations of leaders rests on the individual decisions of those who help support it. Thank you for visiting this website and considering the most effective way to remember UM-Flint in your own plans. Your planned gift helps to ensure the excellence of a Michigan education for generations to come. Your gift can also provide financial and tax benefits for you, your heirs and others you care about.

For more information about how to make a Planned Gift, contact the Office of Development and Alumni Relations at (810) 424-5448.

Bequests: Gifts by Will

Through various types of bequests to the University of Michigan-Flint, you may secure a charitable estate-tax deduction for the value of the gift. Best of all, you will know that your generosity will support our mission for years to come.

You may prefer to state in your will or trust a sum of money, a percentage of your estate, a specific item, a work of art, or real estate that you wish to give to the University of Michigan-Flint.

Whichever form of bequest you choose, it is not subject to estate or inheritance taxes and so significantly reduces the tax burden of an estate. The value of the bequest may be deducted when the taxable estate is determined, and there is no limit to the deduction.

Life-Income Gifts: Gifts that Pay You

Do you want to support the University of Michigan-Flint, but worry about having enough income for yourself and your loved ones? Life-income gifts such as gift annuities and charitable remainder trusts can provide donors with an income stream, significant tax savings, and the satisfaction of providing the University of Michigan-Flint with vital long-term resources. The creation of a life-income gift benefits both the giver and the receiver. It's a "win-win" situation.

Popular Charitable Gift Annuities Now Offered at Michigan

A new type of gift option that was never before available to U-M donors has been approved by the University of Michigan Regents. Michigan alums can now take advantage of a charitable giving opportunity that provides immediate income, a substantial income tax deduction in the first year, and future benefits to a designated school, unit, or scholarship program. Too good to be true?

How does a charitable gift annuity work? The gift agreement is a simple contract under which the University of Michigan will make fixed installment payments to its donor and/or another designated person for life, in return for a gift of cash or marketable securities. Payment rates are based on the age of the annuitants, however, a gift annuity may appeal to people of all ages who desire a fixed income for life. Two forms of a charitable gift annuity are offered: a current gift annuity, which starts paying out within a year and a deferred gift annuity. The deferred gift annuity may be established when younger, however, it would start paying out at age 50 or older.

Charitable Lead Trusts

Transferring property to the University of Michigan and individuals you wish to benefit is not always an either/or proposition. With careful planning you may be able to arrange your transfers to accomplish more than one objective. For example, if you have assets that are appreciating, children who may want to start a business in the future, and a desire to assist The University of Michigan, you may wish to consider creating a charitable lead trust. Such an arrangement would allow you to benefit The University of Michigan until your children are ready and able to step out on their own while minimizing any potential transfer taxes.

Under this plan you irrevocably transfer assets to a trustee and provide that payments be made to us for a certain number of years (or until the end of your or another's life). Then the principal is distributed to your children, grandchildren, or other heirs. The principal passes to your heirs at greatly reduced gift- and estate-tax rates and sometimes escapes them altogether. The charitable lead trust may appeal to individuals who wish to make a gift but retain the property in their family.

There are two types of charitable lead trusts: the grantor lead trust and the more popular nongrantor lead trust, which was made famous by Mrs. Jackie Kennedy Onassis.

Gifts of Retirement Plan Benefits

You may consider using retirement-plan benefits to make a significant gift that will support the University of Michigan. And because of the estate- and income-tax treatment of retirement-plan benefits, the cost of your gift to your estate and heirs is often relatively small.

Retirement-plan benefits include assets held in individual retirement accounts (IRAs) and assets held in accounts under 401(k) plans, profit-sharing plans, Keogh plans, and 403(b) plans.

Income taxes on retirement-plan benefits are deferred but not avoided. This means that, as these assets are withdrawn during retirement by the account owner or the account owner's spouse, they are subject to income tax.

In addition, retirement-plan benefits left to children, grandchildren, and other beneficiaries at the death of the account owner are subject to both income tax and estate tax. This combination of income taxes and estate taxes can result in a tax hit equal to 60 percent or more of the retirement-plan benefits.