Planned Giving

Giving to UMHB

Planned giving is a strategy that makes benefits available for you as well as the University of Mary Hardin-Baylor. Some of the benefits to you can include a source of income for as long as you live, savings on current income taxes, better control of your estate, and reduced taxes for your heirs. The preferential tax treatments associated with planned gifts can help you maximize the benefits of your charitable contributions. You can provide current or future support to UMHB for capital projects, endowed faculty chairs, student scholarships, and other areas of interest to you. Dr. Gene Kimes, Director of Planned Giving, would be happy to talk with you about your ideas. At no cost or obligation to you, Dr. Kimes will prepare examples of gift annuities, charitable remainder annuity trusts, charitable remainder unitrusts, and other types of planned gifts. Call Gene at 254 295-4608 or email giving@umhb.edu for more information.

Life Income Gifts    [back to top]

Three of the most popular types of life income gifts are listed below.

Charitable Gift Annuity

A qualified charitable gift annuity is established through a direct gift to UMHB in exchange for the promise to pay a fixed percentage of the gift back to you. The payout percentage is based upon your age, mortality tables, and several other factors. A tax deduction is allowed, and a portion of the annuity payments is tax-free for the period of your life expectancy if you fund the annuity with cash. If you fund your gift with appreciated property, all or a portion of this otherwise tax-free amount will be capital gain income. The minimum amount for a gift annuity is $10,000.

Charitable Remainder Annuity Trust

A charitable remainder annuity trust is a way to make a gift that allows you to retain income from your contribution for life or for a period of time you specify. Trust assets are invested for payment of a fixed and regular income. A typical annuity trust might pay a 6% or 7% rate, depending on how the assets are invested. The percent rate is fixed when the trust is created and does not change during your lifetime. Income from the trust is taxed at ordinary rates. A tax deduction is allowed at the time you create your trust. The amount of the tax deduction depends on your age, payment percentage, and other factors. Trust assets pass to UMHB upon your death, the death of some other designated beneficiary, or after a prescribed period of years. The trust may be funded with cash or securities for a minimum amount of $10,000.

Charitable Remainder Unitrust

Like the annuity trust, a charitable remainder unitrust provides for a gift that returns an income. Unlike the annuity trust, the income from a unitrust will increase or decrease with the value of the assets placed in the trust. The payout percentage is determined at the time the gift is made, and assets in the trust are revalued each year. When the value of the trust assets goes higher, more income is received. The income will be less if the value of the assets declines. Similar to the annuity trust, a tax deduction is allowed at the time the unitrust is created, and income is taxed at ordinary IRS rates. The minimum amount is $10,000.

Bequests    [back to top]

Gifts through your will may be one of the simplest ways to distribute your estate. After providing for the needs of loved ones, you may choose one of several ways to benefit charitable organizations. By having your attorney revise your will, you can make a gift of a dollar amount, a specific property, a percentage of your estate, or what is left after you have provided for your loved ones. UMHB considers it a great honor to be included in any donor’s will at whatever level the donor deems appropriate. While a testamentary gift does not provide current income tax deductions, it may help to reduce estate taxes.

If you have established a revocable living trust, you can provide that at its termination, a portion of the assets in the trust be used for charitable purposes you direct. Much like a charitable bequest through a will, such a gift does qualify for a charitable estate tax deduction.

Gift of Home, Retained Life Estate    [back to top]

A retained life estate allows you to make a gift of a home or certain other real estate while retaining the use of the property for as long as you live. The satisfaction of giving, as well as a charitable income tax deduction, is enjoyed now rather than later. You continue to take care of the property and pay the taxes, but because you have made a gift of the property, it does not pass through your probate estate at death, possibly saving unnecessary expenses and delays.

Retirement Plans    [back to top]

Individuals who participate in pension plans, Individual Retirement Accounts, 401(k) plans, Keogh plans and other qualified retirement savings plans may take advantage of the opportunity to make important contributions by designating UMHB as a beneficiary.
Income taxes as well as estate taxes may be avoided in certain circumstances through a simple beneficiary designation. You can name UMHB as beneficiary of part or all of your account by requesting a form from the custodian. Please note that spousal consent is required for married persons in most cases.

Life Insurance    [back to top]

One way to make a gift of insurance is to purchase a new policy, naming UMHB as beneficiary. This may be attractive to younger adults who want to make a large gift to the university in the future, but have smaller amounts to contribute now. Another way is to change the beneficiary of an existing policy. Life insurance needs change as life progresses. Children become self-sufficient, and investments may provide unexpected income and security. As a result, not all life insurance coverage may be needed for the reason it was purchased initially. Changing the beneficiary might be appropriate under such circumstances.

Charitable Lead Trusts    [back to top]

A charitable lead trust is an excellent way to pass highly appreciated assets to heirs with reduced gift or estate tax costs. The charitable lead trust pays an income to UMHB for a specified number of years with the remaining assets reverting to you or to an individual designated by you at the end of the period.

Securities    [back to top]

Gifts of appreciated capital assets such as stocks, bonds, and real estate can have significant tax advantages by avoiding capital gains tax in addition to providing a deduction. The amount of the deduction is based upon the market value of the asset on the date of contribution instead of the original purchase amount. The market value of the assets is deductible up to thirty percent of your adjusted gross income. By transferring the assets to UMHB rather than selling them, you avoid payment of a capital gains tax on the appreciation. If you have appreciated assets, you may want to consider transferring all or a portion of them to UMHB. The Planned Giving Office will provide assistance in coordinating the transfer with your broker.

Legacy Club    [back to top]

The purpose of the Legacy Club is to recognize graduates, former students and friends who have made a commitment to support the University of Mary Hardin-Baylor through a future gift from an estate, annuity, insurance policy, or a trust or retirement plan. Membership is open to individuals who provide some form of documentation of their intent. A listing of Legacy Club members is published in UMHB Life, unless the donor requests to remain anonymous.

Interested in talking with someone about any of these strategies?

Contact Dr. Gene Kimes
Director of Planned Giving

University of Mary Hardin-Baylor
UMHB Station Box 8428
900 College Street
Belton, Texas 76513

(254) 295-4608

giving@umhb.edu