Gift Planning

A planned gift to the William S. Richardson School of Law (WSRSL) serves several purposes.  It helps satisfy personal financial-planning needs and it provides the law school with important long-term support.  Planned giving options include:

Charitable Bequests

A bequest is a gift to charity after life and one of the simplest types of gift to make.  Donors can use a will, trust, or beneficiary designation form to leave a percentage of their estate, a specific dollar amount, or a specific asset to WSRSL.

Advantages:

  • Allows the donor to maintain control over the asset during his/her lifetime
  • Avoids income tax consequences to other beneficiaries
  • Qualifies donor’s estate for a charitable deduction that can reduce estate tax liability.

 Residual and contingent bequests provide first for family members, and then, circumstances permitting, for the law school.

Charitable Gift Annuities (CGA)

CGAs are contracts between an individual and the UH Foundation.   In exchange for a gift of cash or property to WSRSL, the donor and/or his designee receive fixed payments for life.  Annuity payments can begin immediately or at a later date.

Advantages:

  • Fixed payments for life
  • Partly tax-free payments
  • Immediate income tax deduction to donor in the year of the gift
  • Rates are higher than current CD rates (for example, a single annuitant aged 70 would receive a rate of 5.1%)
  • Payment start date can be deferred to permit a higher annuity rate and generate a larger charitable deduction.

Charitable Remainder Trusts (CRT)

A gift of cash or property (including appreciated assets, e.g. securities and real property) are transferred to a CRT, which makes payments to the donor, the donor’s spouse, or other beneficiaries for a lifetime or for a term of years.  When these payments end, the trust assets pass to WSRSL to be used as directed by the donor.

Advantages:

  • Avoids capital gains tax on the sale of assets
  • Pays supplemental income to donor or family members for life
  • Immediate income tax deduction to donor in the year of the gift

Charitable Lead Trust (CLT)

A gift of cash or property (including appreciated assets, e.g. securities and real property) are transferred to a CLT, which makes payments to the charity for a specified period of time.  At the end of the period, the trust property is returned to the donor or distributed to family.

Advantages:

  • Enables donor to get back the trust assets for self or family
  • Substantial income or estate tax deduction
  • Charity is able to use income immediately for specified period of time

Beneficiary Designation or Charitable IRA Rollover Gift

Retirement assets often exceed expectations—and increase tax burdens.  Taxes, which sometimes exceed 70%, can erode assets when left to heirs outright. Making a charitable gift of retirement assets reduces this tax burden.  Consider designating WSRSL as the beneficiary of your 401(k), life insurance, or Individual Retirement Account (IRA).  If you are 70-1/2 or older, you can also direct your plan administrator to distribute a gift (up to $100,000) directly to the UH Foundation and avoid paying taxes on the withdrawal while also supporting the Law School.