Life Income Plans
Not in a position to make an outright gift to the Foundation? Finding it difficult to live off your fixed income? There are a number of ways to meet your retirement needs and provide for the University of Maine. A gift to a life income plan provides you and/or your loved one an income stream for your life (lives) while benefiting the University and entitles you to a charitable tax deduction.
The University of Maine Foundation has professional giving officers ready to work with you and your advisors. We may be reached Monday-Friday between the hours of 8 am and 5 pm by calling 1.800.982.8503 or via email at email@example.com.
Charitable Gift Annuties
With a gift annuity, you make a donation in cash, marketable securities or other assets and the University of Maine Foundation pays you a fixed amount for life. This lifetime gift can provide a significant income tax deduction and can help to reduce capital gains taxes. The remainder is endowed to support what means the most to you at UMaine.
To learn more about charitable gift annuities, visit the information here:
Learn more about Charitable Gift Annuities
The University of Maine Foundation offers charitable gift annuities in many states. A charitable gift annuity is a simple contractual agreement that provides you with lifetime income and create a legacy of support in your area of interest at the University of Maine.
With this type of gift, you and/or a loved one receive guaranteed quarterly income payments for the rest of your life (or lives). Annity rates* can be offered for one or two people and depend upon the age and number of income recipients. Gifts of cash, securities, real estate or other appreciated property can be used to fund a gift annuity. There are no start-up fees, the donor qualifies for a substantial charitable tax deduction and capital gains taxes can be reduced and spread over a number of years.
*The University of Maine uses the rates suggested by the American Council on Gift Annuities (ACGA). ACGA is a qualified nonprofit organization formed in 1927 as the Committee on Gift Annuities for the purpose of providing educational and other services to American charities regarding gift annuities and other forms of planned gifts.
Deferred Gift Annuties
Making a gift now but waiting to start the payment stream until you need it will increase the amount of each payment and the available charitable deduction. This is called a deferred gift annuity. For example, a donor could establish a deferred gift annuity while working and not start taking payments until he or she turns 65. Doing so would allow a significant charitable deduction from income taxes now and supplement retirement income significantly later.
We encourage you to consult with your legal and financial advisors concerning charitable gift annuities and how they fit into your financial and estate planning situation.
Charitable Remainder Trusts
With an irrevocable trust, you or a loved one can receive income during your life. Those income payments can be set to last for a period of years or for the lifetime of the beneficiary. Income can be a fixed annual income (an annuity trust) or an income that varies with the value of the trust (a unitrust). A charitable remainder trust ends when either all who are receiving trust income pass away or upon a predetermined date specified in the trust agreement. Any remaining trust assets will then go to the Foundation to support the University of Maine (and possibly other charities) to be used in a way you have designated.
Trusts may be funded by gifts of cash, securities or real estate and can frequently help donors solve a particular problem or meet an important objective:
- To increase income through the conversion of low yielding highly appreciated assets;
- To generate a significant income tax charitable deduction and/or reduce potential estate tax exposure;
- To diversify an investment portfolio with professional management;
- To reduce or eliminate capital gains tax exposure; or
- To make a gift to benefit the University of Maine that might not otherwise be possible.
Learn about how a Charitable Remainder Trust works
• With the help of appropriate advisors, a tax-exempt trust is created applicable state and federal laws.
• You name the individual(s) to receive income from the trust and the charities to receive the remaining assets when the trust terminates.
• You may specify that payments from the trust be made to you and/or one or more other persons for life;
• Alternatively, you may choose to receive income for a period of time up to 20 years; or
• You may also be able to select certain combinations of lives and terms of years.
• The amount of income received may be fixed at the time the trust is created or the trust can be created in such a way that the income can fluctuate over time with the performance of the assets in the trust.
• You transfer cash, appreciated securities, real property, etc. to the trust. Because property transferred to the trust will be used for charitable purposes in the future, gift, estate and income tax deductions equal to the value of the gift portion of the trust are allowed in the year of the gift.
• At the end of the trust period, any property remaining in the trust is transferred to the University of Maine Foundation to be used to support the University of Maine in the ways you have designated.
EXAMPLE: Mr. and Mrs. V., ages 61 and 62, are planning to retire in a few years. They own substantial amounts of securities that they have acquired over time. The securities are worth more than they paid for them, but yield little or no income. Deciding that they would like to convert the securities to income-producing assets, they explore selling the holdings, but learn that they will owe capital gains tax on the entire increase in value, leaving less to invest for more income. They use a portion of their securities to fund a charitable remainder trust. The trust can sell the assets, pay no capital gains tax at the time of the sale, and reinvest the entire net proceeds in a way that will yield tax-favored payments. They are entitled to a charitable income tax deduction in the year of the gift and are assured that the amounts placed in the trust will be removed from their estate for estate tax purposes. Mr. and Mrs. V. have provided for management of their assets should they become incapacitated in later years and gained great satisfaction in having funded a scholarship fund for University of Maine students.
Let us thank you
Including the University of Maine or its affiliated organizations in your estate plans entitles you to membership in the university's Charles F. Allen Legacy Society. Your gift need not be irrevocable and we understand that situations change. It is your current expression of commitment to the university that is important. Charles F. Allen Legacy Society members receive a membership certificate recognizing their intentions and a lapel pin. Members are also listed in the Society's Annual Report and are honored periodically at special events.
If you have already included a gift for the University of Maine in your estate plans or you intend to, please let us know. We would like to thank you for your generosity, ensure that we understand the purpose of your gift, and recognize you as a member of the Charles F. Allen Legacy Society.