How to Make a Planned Gift to the ISR

• Gifts by Will
• Charitable Remainder Trusts
• Charitable Gift Annuity
• Charitable Lead Trust
• Gift of Retirement Plan Benefits

Thank you for your interest in learning more about making a planned gift to the University of Michigan Institute for Social Research.

We would be delighted to explore planned giving options with you and encourage you to discuss the applications of the following planned giving approaches with your attorney or tax advisor.

Gifts by Will

A bequest is a method of making a charitable gift from your estate by naming the University as a beneficiary in a will. You may also name the University as beneficiary on beneficiary designation forms of certain accounts such as IRAs and annuities. Our preferred bequest language can be incorporated into a will or living trust to designate the University of Michigan as a legatee of your estate. Our preferred beneficiary designation language can likewise be incorporated on beneficiary designation forms for IRAs, annuities, and similar accounts. The suggested wording can be adapted to meet your desired gift intention, i.e., a bequest or beneficiary designation for a particular program at the Institute for Social Research.

More about bequests

Charitable Remainder Trusts

A charitable remainder trust is a way to make an irrevocable gift to the University of Michigan, receive some immediate tax benefits and still receive annual income distributions from the assets during your lifetime(s). Upon the death of the last beneficiary, the trust principal becomes the University's and will be used according to your specified instructions.

If you are interested in income growth as a hedge against inflation, the charitable remainder unitrust provides the potential for increased distributions over the life of the trust. The trust assets are valued annually. Payments to you or your designated beneficiary(ies) are typically made as a predetermined percentage of the value of the trust assets. Any growth in the trust over the annual distribution is added to the trust's principal. As the trust assets grow, so do payments to you or your designated beneficiary(ies).

A charitable remainder annuity trust is most attractive to people who want a fixed distribution. Each year the trust will distribute the payout amount determined at the time the trust is established. This amount is paid every year for the life of the beneficiary(ies), regardless of whether the trust grows or declines in value, as long as the trust is solvent.

More about Charitable Remainder Trusts

Charitible Gift Annuities

Michigan alums may now take advantage of this very popular charitable giving opportunity that provides a fixed income for life. Charitable gift annuities have been in existence for more than 100 years and are one of the most simple life income plans available. An ever-increasing number of non-profits are offering annuities because they are so easy to understand and to establish.

More about Charitable Gift Annuities

Charitable Lead Trust

A charitable lead trust is a vehicle for transferring substantial assets to your children or others while minimizing transfer taxes. By permitting the income from those assets to go to a charitable institutions like the University of Michigan for a period of time, gift and estate taxes may be greatly reduced. The annual distributions are available to the charity immediately. At the end of the trust period, the remaining principal is distributed as you directed to your chosen beneficiaries.

More about Charitable Lead Trusts

Gift of Retirement-Plan Benefits

For many people, money accumulated in retirement plans represents a significant percentage of their total assets. Even with the minimum distribution rules for mandatory withdrawal, many of these plans still have large balances at the death of the owners.

People are often surprised to discover that assets they thought would simply pass to heirs from their qualified retirement accounts are the most heavily taxed assets in their estate. Estate taxes, income taxes, and generation-skipping transfer taxes can consume nearly 80 percent of a retirement plan account. There are ways to avoid or significantly reduce these taxes.

If you are interested in supporting Michigan through a bequest, a qualified retirement plan or IRA may be the best way. By making the University the beneficiary, you would eliminate the income tax, generation-skipping transfer tax, and the estate tax on the funds in the plan. The University would receive 100% of the retirement assets. By contrast, if you left these same assets directly to heirs, they may receive as little as 20 percent. Even with the 1997 repeal of the 15% excise tax on retirement accounts, they remain the most heavily taxed asset in your estate.

If you wish to benefit your heirs before transferring your assets to charity, you may designate a testamentary charitable remainder trust as beneficiary of your IRA or other qualified retirement plan. Upon your death, the plan balance will be distributed to a charitable remainder trust, which will pay income to your heirs for their lifetimes, or for a period of years. Upon their deaths, or when the trust term is completed, the remaining trust principal will be transferred to the University. With this strategy some income tax is avoided, the estate tax is reduced, heirs may enjoy a greater percentage of the proceeds, and you have provided a substantial gift to the University.

More about Retirement Asset Options