Planned Giving offers substantial income, estate and gift tax benefits to the donor while supporting the future of Michigan Athletics. Planned gifts can take the form of trusts, bequests, life insurance or contributions to a donor pooled income fund.
For more information, please call Joan Henry at (734) 647-9895.
EXAMPLES OF PLANNED GIVING
Opportunity: A couple -- both age 65 --- wish to make a gift to the University of Michigan Athletic Department for an endowed scholarship. They own stock purchased at $10 per share that is now worth $30 per share. They decide to place $200,000 worth of the stock into a Charitable Remainder Trust that will pay them 5% income each year.
Result: The donors receive an income tax deduction of approximately $70,500 and income each year for the rest of their lives. The income the first year will be $10,000 ($200,000 x 5% = $10,000); after that it will vary with the value of the trust. At the end of their lifetimes, they will have funded their philanthropic goal of an endowed scholarship for a deserving University of Michigan student-athlete.
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Opportunity: An 80-year-old gentleman has enjoyed following University of Michigan ice hockey all his life. He decides to use a portion of a recent inheritance from his sister to make a gift. He establishes an 8% charitable gift annuity with a gift of $100,000 that will ultimately provide the team discretionary funds for its most pressing needs such as equipment, travel costs, training, etc.
Result: His gift annuity will provide an income tax deduction of approximately $45,500. In addition, he will receive $8,000 per year for the rest of his life -- $5,368 of which will be tax free. When he dies, the University of Michigan ice hockey team will benefit from his generosity in perpetuity.
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Opportunity: A couple -- both 77 -- decide they want to benefit Michigan's water polo team in honor of their son and grandson -- both of whom played water polo at the University of Michigan. With their conservative investment stance, they have limited their philanthropic giving over the years to concentrate on financial security for themselves and their family. The couple decides to include a bequest in their will for University of Michigan Athletics stipulating that it create a fund -- in their son and grandson's names -- that will assist the water polo team with operational expenses.
Result: They have the security of knowing they will have full use of their accumulated assets while alive, and that upon their death will create a legacy for themselves in honor of their son and grandson who participated in the University of Michigan tradition of academic and athletic excellence.
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