Planned Giving

Frequently Asked Questions

Who can act as trustee of my charitable remainder trust?
The UMMS Foundation acts as trustee for charitable trusts under which UMMS is named as the remainderman (the recipient of the assets when the trust ends). Alternatively, you can act as trustee, or you can name another individual or professional trustee (such as a bank) to act on your behalf

Can the trustee be changed?
You can retain the right to change the trustee at a later time.

How is my income calculated?

Gift Annuity - Your annuity is calculated at the time of the gift based on your age and is fixed for the term of the annuity.
Annuity Trust - Your annuity is calculated based on a fixed percent - must be at least 5% - of the trust's value at the time of the gift and remains fixed for the term of the trust.
Unitrust - Your income payment is calculated based on a fixed percentage of the annual value of the trust assets - must be at least 5% - and, therefore, varies from year to year. A unitrust may accept additional contributions after it is established.

Is there a way to use current assets to provide me with income later in life?
A deferred gift annuity offers the flexibility to begin annuity payments at the later date and works well as part of an effective retirement plan. You still receive a charitable deduction in the year you made the gift. The earnings generated by your gift are reinvested until annuity payments begin, allowing the gift to grow, and you receive your annuity payments at a time when you are likely in a lower income tax bracket.

What is the difference between a charitable remainder unitrust and an annuity trust?
There are two significant differences between the unitrust and annuity trust. The annuity trust payment is fixed at the time the trust is established and does not change, unlike the unitrust income payments which vary based on the annual value of the unitrust. The other difference is that you can make additional gifts to a unitrust whereas an annuity trust cannot accept additional contributions.

What is the difference between a gift annuity and an annuity trust?
Both gift arrangements pay a fixed annuity. However, there are important differences. The gift annuity is based on a simple contract between you and UMMS in contrast to the annuity trust, which is a trust arrangement. Gift annuity payments are guaranteed by UMMS, even if the initial gift is used up. Conversely, the annuity trust's obligation to make payments is limited to the annuity trust's assets.

Why is the gift annuity income rate lower for me and my spouse than for one of us alone.
If a gift annuity is established to provide income for two beneficiaries, rather than one, the annuity rate is lower because the actuarial life expectancy of two people is longer than for one person.