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PLANNED GIFT TYPES

Click here for details on the benefits associated with a gift to Carolina Forever or the different planned gift options.

Click
here for sample bequest language.Levi Michael

Click
here for more information on the IRA rollover or contact Sue Walsh at 919.843.6413 or email Sue at sue_walsh@unc.edu.


Planned giving in support of Carolina Athletics can be accomplished through many different options:

  • Bequests by Will - One of the most common deferred gifts is the bequest: a provision in your will leaving a gift to the Educational Foundation. Bequests may take the form of cash, securities, real estate, personal property or a percentage of your estate. Before you decide to leave a bequest in your will, however, you should discuss with your advisors the comparative advantages of the life income options discussed above.
  • Charitable Remainder Trusts - The charitable remainder trust allows you to diversify an appreciated asset tax-free and receive an income stream into the future. You transfer cash, securities or property to an irrevocable trust for the future benefit of the Educational Foundation. In exchange, you and/or a designated beneficiary will receive a fixed percentage (not less than 5%) of the fair market value of the trust assets each year for life or for a fixed term up to 20 years. The Foundation will receive the balance of the trust assets when the income interest ends in the future. The trustee can sell the contributed assets tax-free and reinvest 100% of the proceeds in a diversified portfolio. You will receive a tax deduction equal to the present value of the Foundation’s remainder interest in the trust principal, an amount that is actuarially determined. You can add to the trust after it is established.
  • Charitable Lead Trusts - If you are in high brackets for federal gift and estate taxes, and you wish to benefit both the Educational Foundation and your family members while saving taxes, the charitable lead trust may be the answer. The charitable lead trust is the reverse of the charitable remainder trust in that the investment income is given to the Educational Foundation for a specified number of years or life, after which the remainder interest reverts either to you or to a non-charitable beneficiary designated by you (e.g., heirs). The income interest that is paid to the Educational Foundation may be either an annuity interest, which pays a fixed dollar amount each year, or a unitrust interest which pays a fixed percentage of the value of the trust each year. Although you are not entitled to a charitable deduction for federal income tax purposes on the creation of such a trust, you will not be taxed on income passing to the Educational Foundation. Substantial estate tax as well as generation-skipping transfer tax savings may result.
  • Charitable Gift Annuities - A charitable gift annuity is established by transferring assets to the University of North Carolina for the benefit of the Educational Foundation, which, in return, agrees to make regular, fixed payments to you for the rest of your life. This is an ideal gift for those who need a guaranteed, stable retirement income with payout rates substantially higher than a certificate of deposit. You receive four benefits: an immediate tax deduction, possible estate tax savings, favorable tax treatment on any capital gain if appreciated property is given, and guaranteed regular income, part of which may be tax free. The amount of the income tax deduction depends on the amount of the gift and various actuarial factors. You can also defer income from the gift annuity for a period of years and still receive the immediate tax deduction, along with additional benefits.
  • Deferred Gift Annuities - A charitable gift annuity is established by transferring assets to the University of North Carolina for the benefit of the Educational Foundation, which, in return, agrees to make regular, fixed payments to you for the rest of your life. This is an ideal gift for those who need a guaranteed, stable retirement income with payout rates substantially higher than a certificate of deposit. You receive four benefits: an immediate tax deduction, possible estate tax savings, favorable tax treatment on any capital gain if appreciated property is given, and guaranteed regular income, part of which may be tax free. The amount of the income tax deduction depends on the amount of the gift and various actuarial factors. You can also defer income from the gift annuity for a period of years and still receive the immediate tax deduction, along with additional benefits.
  • Life Insurance - The gift of a life insurance policy can also be a means of obtaining tax benefits and making a gift for the future without an immediate impact to your portfolio. The gift of an existing paid-up policy which designates the Educational Foundation as the owner and beneficiary of the policy results in a tax deduction for the lesser of the cost basis and the fair market value of a policy, which is roughly equivalent to cash surrender value. Where a new policy is obtained, the deduction would be for the premiums as they are paid each year.
  • IRA & Other Retirement Plans - Donors can realize substantial tax advantages and benefits by assigning the Educational Foundation as the recipient of an IRA or other retirement plan.
  • Gifts of Real Property - It is possible to give your personal residence, vacation home, commercial property or a family farm to the Educational Foundation, and yet retain the lifetime use of the property for yourself and/or your spouse. The gift is irrevocable and generates an immediate charitable deduction based on the actuarial value of the Foundation’s remainder interest. You can also give a fractional interest in real property that you are selling and reduce your taxes on this transaction.