|Through a charitable remainder trust, Ken and Verena Wilson established the Kenneth J. and Verena Wilson Asian Faculty-Student Exchange Program. In the program, Texas State faculty and students will assist with the modernization of Cambodia, Laos, and Vietnam. Read more about the program. |
A planned gift may enable you to make a more significant gift than you thought possible and at the same time achieve your financial and estate planning goals. Planned gifts can provide life income, immediate and long-term tax advantages, and cost-effective professional asset management.
If you would like more information on any of the planned giving options below—including specific, detailed information about programs, naming opportunities, endowments, and funding priorities in the College of Liberal Arts—please contact:
A provision in your will that directs a gift from your estate to the College of Liberal Arts is called a bequest, and it can provide significant tax savings for your estate. You may use various assets to make your gift, including cash, securities or other property. A gift of real property must be inspected and approved by the University before it can be used as an asset to fund a gift.
We recommend that an attorney help you in preparing and executing your will in order to comply with the requirements of the laws in your state. When you let us know that you are naming us in your will, you can be sure that your bequest will be executed in the manner you intended, and we will be able to recognize your gift during your lifetime, if you desire.
The following suggested bequest language can be used in your will:
I hereby give, devise, and bequeath $____________________ (or _____ percent of my residual estate) in cash, securities or other property to the Texas State University-San Marcos Development Foundation.
This gift shall be used to create the (NAME) as a permanent endowment for the benefit of the College of Liberal Arts. Funds distributed from the endowment shall be used to provide (PURPOSE OF THE ENDOWMENT).
There are several ways to give life insurance. A few of the most popular are:
- Purchase a life insurance policy and name the Texas State University-San Marcos Development Foundation, for the benefit of the College of Liberal Arts, as irrevocable owner and beneficiary. Make your annual, tax-deductible premium payment to the Foundation, and we will make your premium payments to the insurance company for you.
- Contribute an existing policy by changing the name and owner of the policy to the Texas State University-San Marcos Development Foundation, for the benefit of the College of Liberal Arts. Again, make your annual, tax-deductible premium payment to the Foundation, and we will make your premium payments to the insurance company for you.
- Give a paid-up policy outright and deduct either its replacement value or the amount paid for the policy, whichever is less.
- Add the College of Liberal Arts at Texas State University-San Marcos to an existing policy as remainder or final beneficiary in case your primary or secondary beneficiaries don’t survive you.
- Assign annual dividends from the policy to the Texas State Development Foundation, to be distributed to the College of Liberal Arts. The value of the dividends is deductible.
A gift of real estate can be an effective way to make a major gift to the College of Liberal Arts because the gift can entitle the donor to an income tax deduction for the property's full appraised market value and reduction in capital gains taxes and estate taxes. Gifts of real estate can be made outright, outright but with lifetime residence rights, or through a charitable remainder trust. Almost any marketable real estate is suitable for a charitable gift. A gift of real property must be inspected and approved by the University before it can be used as an asset to fund a gift.
Remainder Interest or Life Estate
A gift of a remainder interest in a personal residence or farm occurs when a donor irrevocably transfers title in the property to the University while retaining the right to use the property for a length of time specified at the time of the gift. The term of the gift can be measured by the life of one or more individuals, a fixed term of years or a combination of both. However, these gifts are most frequently established to last for the term of the life or lives of the residents of the donated property – thus, the term life estate.
Gifts That Provide Income for You
A charitable gift annuity is a simple contract between the donor(s) and the Texas State University Development Foundation. With a minimum gift of $10,000, beginning at age 60 or later, the Foundation will make fixed payments to one or two annuitants. The size of the annuity payment will vary depending on the size of the gift and age of the annuitant(s). Once the beneficiaries of the annuity are no longer living, your gift will be used by Texas State to support programs or endowments of your choosing within the College of Liberal Arts .
The charitable remainder trust is similar to other types of trusts except that the amount distributed at its termination (the remainder) is paid to a charity. A donor transfers property irrevocably to a trust and specifies the amount of payments to be distributed, the duration of payments (a period of years or the beneficiary's lifetime), and the charity or charities that will receive the remainder. The charitable remainder unitrust provides for payment to the beneficiary that is based on a percentage of the net fair-market value for the trust assets valued manually. Whereas the unitrust provides for a payout that may vary, the charitable remainder annuity trust provides for a fixed payout. This amount must equal no less than 5% of the initial, fair market value of the gift in trust. Also, an annuity trust does not permit additional contributions.
Income generated from assets placed in a charitable lead trust is paid to Texas State for a period of years, after which the assets are distributed to your designated beneficiary or beneficiaries. A lead trust may be particularly beneficial in transferring assets to your heirs with favorable estate tax consequences.
One of the most flexible giving plans is the revocable living trust. Through a revocable trust arrangement, you can transfer cash, securities or other property to Texas State University. Upon your death, the Foundation receives the trust assets, to be used for the purposes you specify within the College of Liberal Arts. In the meantime, you (or the University, if you prefer) will receive the income from the trust. By making the gift through a revocable living trust, instead of through your will, you ensure that the gift you plan is intact and passes directly to the University, without delay.
To preserve your retirement assets after your lifetime, rather than relinquish a large portion to taxes, consider the benefits of using them as a source for charitable giving. This can be accomplished through a direct gift (that is, your account can pass directly to Texas State University as your primary or contingent beneficiary), or it can be transferred to a deferred giving arrangement that will pay income for life to you or another beneficiary. Upon your death the remaining assets will transfer to the University. Typically, the retirement account institution will supply the account holder with a form for designating a beneficiary.
If you would like more detailed information about any of the planned giving options listed here, please contact: