You may want to make a substantial gift to The Medical Foundation, but feel you cannot afford to give up the annual income the asset produces. A life income gift allows you to make a future gift to medicine while providing yourself or others with income for life or a term of years. We offer several ways to help you make a gift while retaining income for life.

You may make a life income gift by irrevocably transferring cash, securities, or other property to one of these gift plans. The funding asset is typically sold and the proceeds are reinvested to provide an income to you, your named beneficiaries, or both. Income payments are made for the beneficiary’s life or, in some cases, for a term of up to 20 years. After that period, the assets remaining are used by the Medical Foundation to support the purposes you designate. By making a life income gift, you can support medicine at UNC, secure a lifetime income stream and receive an immediate income tax charitable deduction.

A charitable remainder trust is a gift arrangement defined by federal tax law that allows you to provide income to yourself or others for life or a term of up to 20 years while making a generous gift to the Medical Foundation. You transfer property irrevocably to a trust and specify how the income and principal are to be distributed. The trust become effective during life or at your death.

TYPES OF TRUSTS

A charitable remainder unitrust (CRUT) is a trust that pays a variable income based on a percentage of the fair market value of the trust’s assets, revalued annually. The Internal Revenue Code provides three variations of a unitrust – a standard unitrust, a net income trust and a FLIP unitrust.

A charitable remainder annuity trust (CRAT) is a trust that pays a fixed dollar amount each year calculated by multiplying the trust payout rate (%) by the original market value of the trust. In an annuity trust, your payment never changes.

  1. Immediate income tax charitable deduction (typically 30 to 50 bercent of the trust’s initial value).
  2. Deferral of capital gains tax on the asset transferred into the trust if trust is funded with appreciated assets.
  3. Potential for increased income – often as much as two to three times the income earned from the contributed asset.
  4. Removal of the asset from your estate for federal estate tax and probate fee calculations.