Life Income Plans

Solutions for large donations.

If you have built a sizable estate and also are looking for ways to receive reliable payments, consider these options for giving to the University of Southern Maine:

Charitable remainder trusts.

This type of trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create. At the end of the trust term, the balance in the trust goes to the University of Southern Maine Foundation.

These types of gifts may offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:

The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.

The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.

Charitable gift annuities.

With a simple contractual agreement, a donor can establish an educational endowment fund benefiting a particular area of interest and receive a guaranteed lifetime income. With a gift, a donor receives guaranteed quarterly income payments for the rest of his or her life. Annuity rates vary and depend on the age and number of income recipients. Gifts of cash, securities, real estate or other appreciated property can be used to fund a gift annuity. There are no start-up fees, the donor qualifies for a substantial charitable tax deduction and capital gains taxes can be reduced and spread over a number of years.

Deferred gift annuities.

By establishing a deferred gift annuity now and directing the quarterly payments to begin after one’s 65th birthday, a donor can enhance retirement income substantially and receive a larger charitable deduction.

Pooled life income funds.

Because gifts to these funds are invested jointly in a large investment pool similar to a mutual fund, yearly income generated from the funds is shared proportionately among participants. A donor would: incur no capital gains taxes on the transfer of appreciated long-term securities, receive a charitable deduction for a portion of the gift, and receive a lifetime income. The minimum gift is $5,000. The fund may be designated for any purpose at the University of Southern Maine.