Gifts made through your estate plan can help you realize your philanthropic goals, and may allow you to make a more significant gift than is possible during your lifetime.
With a strong affiliation for library science, information management, or other iSchool programs, specializations and areas of research, alumni and friends have chosen to support the College in their estate plans. This approach provides the School a long-term funding capacity, and at the same time potentially generates income for you or your loved ones. If you are interested in creating an endowment or supporting an existing fund, a planned gift through your estate can provide a significant impact that establishes a lasting change.
A few examples include:
By making a provision in your will, you may be able to make a substantial gift by designating from your collective assets. For example, you may commit a percentage of your overall estate value, a sum of cash, or otherwise described property.
Working with your attorney, the preferred language is:
"I give, devise, and bequeath to the University of Maryland College Park Foundation, a tax-exempt organization located at 2119 Main Administration Building, College Park, MD 20742, (insert a percentage of estate, or residue or sum of money, or otherwise describe property) to support the College of Information Studies(or insert specifics).
Charitable Gift Annuities
A Charitable Gift Annuity is established by transferring assets to the University of Maryland College Park Foundation for administering. In return, the Foundation makes regular, fixed payments to the donor for the rest of his or her life.
Charitable Lead Trusts
A charitable lead trust is created by placing assets in-trust for a term of time, with a designated payment to the University of Maryland College Park Foundation. At the end of the term, the assets revert back to you or to your family.
Charitable Remainder Trust
You may establish a Charitable Remainder Trust by transferring cash, securities or property to the University of Maryland College Park Foundation. In a unitrust, you or a designated beneficiary receives a predetermined percentage of the net fair value of the trust assets, as of a specified date, for life or a fixed term.
In an annuity trust, you would receive a fixed dollar amount every year for life or for a fixed term.
With both the Charitable Remainder Trust and the Charitable Remainder Annuity Trust, the remaining assets go to the Foundation to benefit the College of Information Studies as you have designated.
Pooled Income Funds
In a pooled income fund, your contribution is invested along with other contributions, similar to a mutual fund. These funds pay quarterly income to you or a beneficiary of your choice, based on the fund's earnings, either for life or for a period of time, which you may determine.
Please contact your financial or tax professional to discuss which option best suits your needs.
By including the iSchool in your estate plans, you will join a special group of donors who are leaving their legacies, with perpetual giving through a planned gift. Equally important to note, you should choose now how you want your estate to be distributed rather than another party when you are unable to make these decisions.
If you are carrying more insurance coverage than your family obligations now require, you may find a hidden gift asset in a surplus, paid-up policy.
Charitable remainder trusts
Earn money on your contribution by transferring money, securities or other assets to a trust that will then pay you an income for life or a period of years. The trust will be designed by you to fit your own needs in conjunction with your financial advisor or legal representative.
Major Federal Tax Law Changes Affecting Estate Planning in 2011
Federal estate taxes:
The exemption level will only be $1 million in 2011, and the top federal estate tax rate will be 55 percent.
Generation-skipping transfer taxes:
The exemption level will change to $1.12 million, plus an index for inflation since 2003. The federal generation-skipping transfer tax rate will be 55 percent. This means that if you leave more than $1.12 million in property to a grandchild or anyone two or more generations younger than you, your estate will incur taxes at a rate of 55 percent on the inherited property.
The top gift tax rate will be 55 percent. The annual gift tax exclusion—the amount you can give to anyone gift tax-free each year—will remain at $13,000 in 2011 ($26,000 for married couples).
Carryover cost basis:
The carryover cost basis tax structure for inheritors in 2010 will expire. In 2011, beneficiaries once again will inherit assets at a cost basis equal to the fair market value as of the date of the deceased's death, or in some cases six months later.