The Legacy Society
The Texas Heart Institute is fortunate to have donors who not only support the work of the Institute during their lifetimes, but make provisions in their wills as well. The Legacy Society was created to recognize individuals who make bequests to the Texas Heart Institute. When individuals inform the Institute of their planned bequests, it gives the Institute opportunities to recognize the thoughtfulness and generosity of these individuals while they are still alive.
Nearly 90 percent of all Americans die without wills, which means that state law determines who receives a person's assets and in what amounts. Members of The Legacy Society encourage others to address the responsibility of making a will, and to create a legacy of generous support in the process.
If you have made a bequest to the Texas Heart Institute or if you have questions about The Legacy Society, please call our Development Office at 832-355-3792.
Charitable Lead Trusts
Charitable Lead Trusts are most appealing to wealthy supporters who want to pass appreciated assets to their heirs without paying a substantial amount in taxes. This is done by allowing the Texas Heart Institute to receive income from the donor's assets for a specified time, after which the asset is transferred back to the donor or to the donor's heirs, who do not have to pay any additional taxes.
The donor does pay a gift tax on the asset when it is placed into the trust, after which it can grow tax-free. A lead trust can reduce gift and estate taxes or provide a charitable deduction for the donor.
Charitable Remainder Trusts
Two basic types of charitable remainder trusts qualify for federal tax benefits. In both arrangements, a donor gives stock, cash, or other assets to a trust. The assets are invested, producing income for the donor – or other beneficiary – either for a fixed period of time or until the donor dies. The donor is allowed to claim a tax deduction for the estimated portion of the assets that will ultimately be given to the Texas Heart Institute. When the donor dies, the Institute keeps all remaining assets.
The two types of remainder trusts are Unitrusts and Annuity Trusts. Under a basic Unitrust, the donor receives one or more yearly payments equaling a fixed percentage of the value of the asset, which is assessed each year. Under a net-income Unitrust, the donor receives only the income earned by the trust, even if the trust earns less than the payout rate. The trust can be set up to include a "make-up provision," which allows the donor to make up the lost income, provided the trust earns more than the payout rate in future years.
Under an Annuity Trust, the donor receives a yearly fixed payment equaling at least 5% of the value of the asset at the time the deferred-giving agreement was signed.
By making Charitable Remainder Trusts, donors can get income-tax deductions and escape capital gains taxes. Many donors find the trusts an appealing way to prepare for retirement. T
he assets can be invested to earn a lower rate of return when the donor is younger and then shifted to earn a higher rate of return, and thus provide more income during the donor's later years.
The gift annuity agreement provides older donors who give cash, securities, real estate or personal property with fixed annual payments for a specified period of time, usually for life. With a deferred gift annuity, the annual payments do not start when the gift is made but begin at a later time specified by the donor.
Gift annuities are attractive to donors who want to receive income from assets that have risen sharply in value, such as cash or stocks. In return for gifts of such assets, the Texas Heart Institute guarantees the donor a fixed annual income for the rest of their lives and it helps the donor avoid capital gains tax. The donor also gets an income tax break on a portion of the earnings from an annuity; the amount depends on the age of the donor.
You may choose to contribute a whole life or annuity life insurance policy by transferring it to the Institute, in which case the cash value can be deductible. You may also assign a policy's ownership to the Institute and name the Institute as an irrevocable beneficiary. Subsequent premiums paid by the contributor are tax deductible up to 30% of your adjusted gross income. Single-premium insurance can provide an attractive mechanism for supporting your interests at the Institute.
For more information, please call our Development Office at 832-355-3792.