Planned giving refers to gift arrangements that take into consideration the assests you wish to contribute, the most advantageous method by which the assets can be contributed, and whether the gift is to be used by UMMS for the purpose you designate immediately or some time in the future. There are a variety of gift plans that allow you to make a gift to UMMS that you might not otherwise have thought possible; and take advantage of special tax benefits available to you and your family.
Many gift planning options receive favorable tax treatment under federal AND state tax laws. Some of these planned gifts enable you to donate cash or convert appreciated assets into a plan that will provide income to you and/or your spouse or one to two other individuals you select.
Through careful planning you may be able to reduce or eliminate income taxes, capital gains taxes and transfer taxes, such as gift, estate, inheritance and generation-skipping taxes.
Gift planning also offers you the opportunity to enjoy tax savings while helping UMMS provide for the health of our community, now and in the future.
If you would like to learn more about gift planning opportunities please call Janice Eisele at 410.328.5061. For more information on various types of gift planning options click here.
Charitable Lead Trust
A charitable lead trust is a plan for giving that can transfer substantial assets to your children or others at a reduced tax cost by directing the income from those assets to go to the Medical System for a designated period of time. At the end of that period, the assets are returned to you, your heirs or other persons you name.
Assets that generate an income and that are likely to appreciate substantially over the life of the trust, typically 10 to 20 years or more, are most suitable for this type of arrangement. The assets that are most commonly used to fund a lead trust are securities such as appreciated securities and bonds or income-producing property that is likely to increase in value.
Gifts of Retirement Plan Assets
Retirement plan assets make very effective testamentary gifts. Retirement plan assets include many types of retirement plans, the most common being IRAs, 401(k) plans, and 403(b) plans. Most often, upon the death of the plan owner, retirement plans are distributed directly to a beneficiary who is named to receive the plan assets on forms provided by the retirement plan.
These assets are often the first choice for a bequest because of the extra tax savings arising from the donation of these assets. Retirement plan assets may be subject to federal estate taxes. In addition, individuals who inherit retirement plans assets must report the distribution as income and pay income taxes.