A life-income gift may be worthwhile if you want to make a gift but need to retain or increase the income you receive from your assets. It can be especially attractive if you own low-yielding but highly appreciated securities, and want to increase your income while avoiding capital gains taxes. And you also obtain a substantial income tax charitable deduction when you make your gift.
The various types of life-income gifts that are available permit you to fashion a gift arrangement that best fits your financial needs. You can structure your life-income gift to pay income to yourself and another person or persons. Your gift can pay a fixed or variable income; it may include tax-free income in whole or part; and you can arrange for the income payments to commence immediately or at a future date, such as the date of your planned retirement.
A charitable life-income plan can also maximize your family’s income from the survivors’ benefits of your qualified retirement plan. You can designate a charitable life-income plan as survivor beneficiary of your retirement plan. When the retirement assets pass into the life-income arrangement, the income tax is avoided and the estate tax is substantially reduced or eliminated. This combination of tax savings gives the charitable life-income arrangement a larger fund available for investment than if you directly designate your heirs as survivor beneficiaries of your retirement plan, resulting in much higher income for your heirs.
Missouri State University Foundation
Kenneth E. Meyer Alumni Center
300 South Jefferson, Suite 100
Springfield, MO 65806
417-836-4143 · Fax: 417-836-6886
Establish a legacy at Missouri State through your will or estate. Working with your attorney or financial advisors, we can help you plan your gift to maximize your benefits. Please email Wendy Ferguson or call 417-836-4143 for more information.