Many of our pharmacy alumni and friends would like to make a financial contribution to the University of South Carolina or the Medical University of South Carolina, but may feel unable to do so because of current financial obligations. Through various planned giving strategies, you can discover ways to make a meaningful gift as well as enhance your long-term financial security. There are several philanthropic options available to you that ensure you and your family are taken care of and that your charitable goals are addressed.
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Through planned giving, you can:
- Achieve an immediate charitable tax deduction, even though the gift technically will not be made until later
- Earn a guaranteed, minimally taxable income for the rest of your life or the life of a loved one
- Avoid capital tax gains on highly appreciated assets, such as stocks or property
- Avoid leaving your family with a sizable inheritance tax burden
Beyond the generous tax and financial benefits associated with planned giving, there's also the satisfaction in knowing that your gift will make a permanent difference in the lives of countless pharmacy students, to the programs of the College and to needed capital improvements that enhance the educational experience. What a wonderful legacy!
The following provides you a snapshot description of some available planned giving tools:
NOTE: The information contained herein is designed to provide accurate information on the topics covered and is not intended as financial or legal advice. The South Carolina College of Pharmacy, University of South Carolina and the Medical University of South Carolina do not engage in providing financial, legal or accounting advice. We encourage you to consult an independent financial advisor as to the application of any of these plans to your specific situation.
Fore more information, email Kelly James Draganov on the MUSC Campus or call 843.7924980; and for the USC Campus, email Luanne S. O'Shea or call her at 803.777.5426.
A Bequest is a gift made through your will. Bequests are fully tax deductible for estate tax purposes, and can often times significantly reduce your total estate taxes. Bequests offer you the opportunity to commit a generous gift through a variety of planned giving vehicles.
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A Charitable Remainder Trust is an excellent way to earn regular income for the rest of your life from a highly appreciated, non-income generating asset - a piece of undeveloped property, for example. It also is a useful way to dispose of any appreciable asset, such as stocks, without having to pay capital gains taxes, gift taxes or estate taxes.
Here's how it works: You place an appreciable asset, such as stocks or property, in a trust. The trust will then make payments (based on an agreed-upon percentage of the asset's value) to you for the rest of your life. At the end of your life, the remaining value of the trust asset is transferred to the institution of your choice.
There are several advantages to a Charitable Remainder Trust.
- You receive income for life.
- You receive an immediate charitable income tax deduction, even though the Health Sciences Foundation might not receive your gift for many years.
- You can reduce your estate taxes.
- And, if your trust is funded with appreciated securities, you can avoid paying capital gains taxes.
- If you wish, you can defer the payment of income until retirement, thereby receiving higher payments.
When this approach is used, the Charitable Remainder Trust is sometimes called a retirement trust.
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The Charitable Lead Trust is like a charitable remainder trust, in reverse. You place an asset in the trust, and the trust pays an annual income to the non-profit institution for a predetermined number of years. At the end of that period, the remaining trust assets are then transferred to your named beneficiaries.
There are several benefits to making a gift through this method. Perhaps the most notable advantage is that it allows you to make a significant gift without actually giving away your property. Furthermore, you qualify for a charitable income tax deduction as though you had given the asset away. The trust can help you remove highly appreciated asset from your estate, thus minimizing gift and estate taxes.
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The Charitable Gift Annuity is an excellent way for you to earn a guaranteed rate of income for the rest of your life, or the life of a loved one. The annuity is agreement between you and the non-profit institution in which the institution agrees to pay you an annual income in exchange for your gift. Because (your receipt of) the income can be deferred until a later date, during which time your annuity continues to grow, the charitable gift annuity can serve as an excellent retirement planning tool.
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You can make a significant gift by naming the Medical University or the University of South Carolina as primary or contingent beneficiary on a life insurance policy that is no longer needed for its original purpose. Or you may choose to make a gift of such a policy today and possibly benefit from immediate tax savings. Another option is to transfer ownership of an existing policy on which premiums are still being paid or purchase a new policy naming either university. In either case, future premiums can be tax deductible.
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You can make a gift of your home to the Medical University of the University of South Carolina while you are still living in it, even if you want your loved ones to live there for life. This arrangement, called a retained life estate, has several significant advantages. You obtain a sizable income tax deduction during the year you deed your property to the University. You remove the home from your estate, protecting your family from hefty estate taxes - even though they might continue to live there. You also retain the right to rent your home or make improvements to it. You continue to have responsibility for maintenance, insurance and property taxes.
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Did you realize that your retirement plan assets are facing double taxation, through income and estate taxes? Without careful planning, your retirement plan assets may be substantially depleted by these taxes. By making a non-profit institution the primary or secondary beneficiary of such assets, these taxes can be reduced or eliminated. |
