Estate and Planned Gifts

Estate and planned gifts may offer numerous financial advantages to the donor while enhancing her or his capacity to make an exceptional gift to the Museum of Art. The donor can both further secure the Museum's future and leave a lasting legacy. For more information about making a bequest, charitable gift annuities, charitable trusts, or the donor pooled income fund, please email umma-giving@umich.edu and a member of our staff will be in contact with you.

Here is some background about common types of estate and planned gifts.

Bequests

A bequest is a transfer of property by will—for example, cash, stocks, bonds, real estate, works of art, or antiques—to an individual or to a charitable organization such as the University of Michigan Museum of Art.

Benefits
• Complete a lifetime of generous giving to UMMA
• Make a larger gift than might have been possible during your lifetime
• Receive a estate tax deduction, which reduces the taxable portion of your estate and the estate's tax liability

Charitable Gift Annuity

A charitable gift annuity provides fixed income for life and is easy to establish. Through this giving method, you will be able to meet both your financial needs and your philanthropic goals. Establishing the annuity requires a minimum gift of $10,000.

Benefits
• An immediate income tax deduction and capital gains tax savings
• A lifetime stream of fixed payments for one or two people (the donor and/or others)
• A future significant gift to UMMA

Charitable Remainder Trust

The charitable remainder trust provides income to beneficiaries for life or for a term of years, after which the trust remainder is distributed to UMMA. Establishing the trust with the University as trustee requires a minimum $100,000 irrevocable gift funded with cash, stocks, bonds or real estate.

Benefits
• Income for life for a specified term of years
• An immediate income tax charitable deduction
• Avoidance of capital gains if trust is funded with appreciated securities or other assets
• The fulfillment of making a substantial gift to UMMA

Charitable Lead Trust

Your charitable lead trust provides annual gift income to UMMA for a specified number of years, after which the trust assets again become available to you, your family or others.

Benefits
• Provides current support to UMMA so you can see the results of your gifts
• May greatly reduce your taxable estate
• May generate a significant wealth transfer, in excess of $1 million, to children, grandchildren or others at minimal gift or estate tax cost
• Provides the most significant tax advantages in a low interest rate environment
• Especially beneficial if the assets have great appreciation potential

Donor Pooled Income Fund

U-M's Donor Pooled Income Fund has been established to enable friends of the University to make tax-deductible gifts to the University of Michigan, while retaining or giving to another the right to receive for life a proportionate share of the income earned by the Fund. Upon the death of all individuals named as beneficiaries by the donor, the donor's participation in the Fund will be used for the University as the donor has directed. An initial gift of $10,000 or more is required for participation.

Benefits
• Tax benefits of making a charitable gift, including a charitable income tax deduction
• Avoidance of capital gains taxes
• An annual income during your lifetime and/or or that of your spouse or another beneficiary over age 50, with minimal management fees
• The advantages of a diversified portfolio

Retirement Assets Options

Because retirement assets are subject to both income and estate taxation, they are usually the best assets to give to UMMA at the time of your death, while cash or appreciated securities may be better assets to give to your heirs. If your IRA, retirement or other qualified plan passes through your estate, your heirs must pay income taxes as they receive distributions. In contrast, U-M, as a tax-exempt organization, would receive 100% of the retirement assets, as the following example illustrates:

IRA to UMMA vs. IRA to HEIR
	UMMA	HEIR
Total Bequest	$500,000	$500,000
Income tax on IRA	0	$200,000
Net bequest	$500,000	$300,000

Benefits
• Reduction or avoidance of income taxes and estate taxes that can rise to 75% or higher on large taxable estates

• Making a significant charitable gift to UMMA
• Giving some or all of your retirement assets after your lifetime without affecting how you receive retirement distributions during your lifetime

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