Giving to the University of Nevada, Reno

The University of Nevada, Reno Office of Planned Giving encourages and assists the tradition of partnership between the University and its alumni, friends, and parents. The personal rewards inherent in making a commitment to support the university and its programs are many. While gifts provide a current charitable income tax deduction, some can also save you capital gains taxes, increase your income, and provide you, or whomever you designate, with an income for life. These gifts can also provide an estate tax deduction – an important consideration in planning your estate.

There are a number of ways of making a planned gift and taking advantage of their benefits.

Charitable Gift Annuity Program

In exchange for a gift of cash or securities, Nevada will agree to pay you a fixed annual annuity. The rate of the annuity is based on the age of the annuitant. Part of the annuity payment will be tax-free for the duration of your life and you will receive an income tax deduction for part of the gift. If a person, age 72, transferred $100,000 to Nevada in exchange for a 6.5% annuity, he or she would receive fixed payments in quarterly installments totaling $6,500 each year for life. Almost half ($3,492) of each year's payments would be tax-free for a period of years (in this case, 14.5 years) after which such payments would be taxed as ordinary income. In the year of the gift, a charitable tax deduction of $49,363 could be taken.

Note - Some securities may require minimal capital gains.

Charitable Lead Trusts

Simply stated, Charitable Lead Trusts allow our University Foundation to receive the payouts from a gift over the term of the trust. Then the assets are returned to either you or your family member/s.

This type of trust is especially important if you have significant estate and gift tax problems or concerns.

Some advantages of a Charitable Lead Trust include:

• Fulfilling your charitable goals for our University
• Leaving valuable assets to your loved ones at a special reduced gift and estate tax cost
• The future appreciation on trust assets can be transferred to family members without gift or estate taxes

Charitable Remainder Trusts

A Charitable Remainder Trust allows you to set aside some of your appreciated assets now for the future benefit of the University of Nevada, Reno, while reserving a lifetime income for yourself or a loved one. You may choose your favorite financial institution as trustee, or you may ask the University for assistance. Together with the University and the trustee, you determine what amount of annual income will be paid out of the trust and whether that income is to be a fixed amount (an “annuity trust”) or a percentage of the value of the trust (a “unitrust”).

For example, a 5% CRT funded with a gift of $100,000 from a person, age 72, would yield an income of $5,000 a year (fixed for the annuity trust; variable with the annual valuation of the trust assets for the unitrust) and a charitable tax deduction of $64,835 (for the annuity trust) or $58,674 (for the unitrust). When the trust ends, the principal passes to the University to fund a purpose selected by the donor.

If your trust is funded with appreciated assets, you may avoid capital gains taxes on the sale of those assets. In addition, you may be entitled to a significant deduction from current income taxes for the charitable value of the trust.

By creating a Charitable Remainder Trust, you enjoy professional management, reduced future estate taxes and the knowledge that you have made a significant future gift to the University of Nevada, Reno.

The suggested minimum amount for a Charitable Remainder Trust is $100,000.

Life Insurance

Many people own fully paid insurance policies, which are no longer needed for their original purposes. Such policies can be given to the University. Paid-up life insurance policies for which the University has been made the owner and irrevocable beneficiary entitle the donor to a charitable tax deduction equivalent to the cash surrender value. Such gifts receive credit for the full value of the death benefit. Gifts of insurance policies that are not paid-up receive tax deductions and credit for their cash values and for the additional annual cash contributions required to enable the University to pay subsequent premiums.

Living Trusts

A Living Trust allows you to avoid probate expenses, plan for disability and protect family privacy. Since a Living Trust is revocable, it can also provide you with flexibility and control.

Your Living Trust may also provide for charitable bequests to the University, provided during the final distribution of the trust assets. Contact your tax advisor for possible federal estate tax deductions for a charitable bequest of this nature.

Real Estate

Outright Gift of Real Estate
Most real estate has appreciated faster than the rate of inflation and offers great potential in charitable gift planning. We would be happy to talk with you about a gift of a home, vacation property, condominium, undeveloped land, or other real estate in support of the University. Real estate gifts will be credited toward the University at full market value as determined by appraisal if the property is subject for resale.

A real estate gift usually entitles the donor to an income tax deduction for the fully appraised value, and in most cases, the donor will not pay capital gains tax.

Note – All real estate or personal residence gifts are subject to approval by our Foundation Acceptance Committee.

Gift of a Personal Residence with a Retained Life Estate
Federal tax law allows you to donate your home or farm to the University while retaining the right to live in it for the rest of your life or a term of years. You may also use a vacation home for this kind of gift. If a person, age 72, irrevocably transferred his or her home or farm, which has a value of $100,000 to the University, and the right to live in it was retained for life, an income tax deduction of $41,015 could be claimed and the donor would receive credit for the full value of the property no matter when it passes to the University for its use or sale.

Remainder Interest in Home or Farm

Through this type of plan, you may continue to reside in and enjoy your home or farm during your lifetime. Once the life estate period ends, the proceeds from the sale of the property can be used by our University Foundation for the needs of our University.

The tax advantage from this planned giving vehicle allows you to receive a current tax deduction based on factors that include your age and current value of the property.

Retirement Accounts

Unlike many other types of assets, your retirement plan accounts are potentially subject to double federal taxation – both the income and estate tax. These retirement accounts involve individual pension and profit sharing plans, as well as 403b, 401k and IRA accounts.

Because these plan assets are so highly taxed when transferred to your family members, including our University Foundation as the beneficiary serves as a successful tax-wise gift strategy. When used to make a charitable gift to the University, this type of charitable bequest avoids both estate and income taxes entirely.

Wills

Several of our wonderful alumni (ae) and other friends of the University have created legacies through charitable bequests in their wills.

A bequest can help fulfill your charitable goals, through support of scholarships, research, memorializing a loved one or another valued area of the University campus. Charitable bequests also offer significant tax advantages.

Remembering the University of Nevada, Reno through your will can take several forms, including:

• Specific bequest: Our University Foundation receives a stated dollar amount or specified piece of property.
• Residuary bequest: Our University Foundation receives all or a percentage of the remainder of your estate after specific bequests, debts, and expenses are deducted.
• Contingent bequest: Our University Foundation receives distribution from your estate only if you outlive your named beneficiaries.
• Testamentary Trust: Your bequest provides one or more loved ones with an income for a term of years or life, after which the remaining assets pass to our University.

University of Nevada, Reno
Planned Giving/162
Reno , NV 89557

Phone: (775) 784-1352
Fax: (775) 784-1394
Email: giving@unr.edu