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The Benefits of Retirement Gifts

Check out these three retirement gift methods to see if they might be right for you!

August 5, 2019

There are many planned giving options that allow you to tailor a gift to your unique needs and interests while ultimately benefiting Texas A&M University. Making a retirement gift can be one of the most diverse and flexible options available. Retirement assets carry a heavy tax burden when passed to beneficiaries, but because they are not taxed when passed to the Texas A&M Foundation, they are a great charitable gift option.  

Check out these three retirement gift methods to see if they might be right for you! If so, our experienced gift planners will work with you, your attorney and other advisers to design the best gift plan for your individual situation.

Christian Martin '19 is one of six recipients of an industrial engineering scholarship funded through a retirement account gift by the late Dr. Bonnie Hunt '77. 

1) Retirement Account Beneficiary Gift

Beneficiary designation gifts are a simple, flexible and affordable way to give to Texas A&M. You can designate the Foundation as a beneficiary of your retirement account, which allows you to support the causes you care about while retaining the ability to use your account for as long as you need. To make a beneficiary designation gift, simply contact your account custodian and ask them to send you a new beneficiary designation form on which you can designate the Foundation. After your lifetime, your account will transfer to the Foundation.

Christian Martin ’19, one of six recipients of an industrial engineering scholarship established through a retirement account gift by the late Dr. Bonnie Hunt ’77, is grateful for her legacy. “This scholarship is helping me graduate without college debt,” said Martin. “I’m honored that Bonnie Hunt’s gift is supporting my engineering degree.” 

Hal Schade '67 has been able to give up to $100,000 annually using an IRA charitable rollover gift. This gift allows you to avoid taxes on IRA withdrawals, satisfy your required minimum distribution for the year and reduce your taxable income, all while supporting Texas A&M.

2) IRA Charitable Rollover

If you are 70 ½ or older, you may be interested in lowering the income and taxes from your IRA withdrawals. An IRA charitable rollover gift allows you to avoid taxes on IRA withdrawals, satisfy your required minimum distribution for the year, reduce your taxable income and make a gift for Texas A&M that is not subject to the 50 percent deduction limits on charitable gifts. By simply contacting your IRA plan administrator and designating a gift be made to the Foundation, your IRA funds will be transferred immediately to benefit the university.

In 2018, Hal Schade ’67 learned that he could give up to $100,000 annually using an IRA charitable rollover gift, which would also cover his minimum distribution. “This provides me with the opportunity to support students and programs in the College of Science and College of Geosciences immediately,” said Schade. 

Jere Cyrus and Jack H. Smith '64 created a planned gift in support of students at Texas A&M Galveston in the marine transportation program using a testamentary unitrust. This type of trust first pays income to your family for a number of years and then distributes the remaining balace to the Foundation. 

3) Testamentary Unitrust (a.k.a. “Give it Twice” Trust)

Known as the “give it twice” unitrust, this planned giving method is a popular option that allows you to transfer your IRA or other assets at death to fund a charitable remainder unitrust. It’s called a “give it twice” trust because the trust first pays income to your family for a number of years before distributing the remaining balance to the Foundation.

Jere Cyrus and Jack H. Smith ’64 decided to create a planned gift using a testamentary unitrust. Invested by the Foundation, the Smith’s trust will make annual lifetime payments to the couple’s three children, plus payments to their two grandchildren for a term of 20 years. At the termination of the trust, the remaining assets will support Texas A&M University at Galveston and students in its marine transportation program. “I was the first in my family to go to college,” Jack said, “and I couldn’t have done that without a little help. Supporting these students is important to us.” 

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Contact

  • Kevin Westerman '11

  • Assistant Vice President for Planned Giving
  • Office of Planned Giving
  • Call: 979.314.8799

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