Dual benefit gifts allow you to provide for two main sets of beneficiaries: yourself and the Texas A&M Foundation on behalf of Texas A&M. 

Charitable Lead Trusts

If you’re concerned about taxes taking a large part of the assets you plan to leave your heirs, you might consider a charitable lead trust. This strategy allows you to pass assets along to your family with significant estate and gift tax savings while making a gift to the Texas A&M Foundation. After the Foundation receives earnings from assets in the trust for a period of years, the principal goes to your family, with estate or gift taxes usually reduced or even eliminated. A lead trust is an exceptional way to transfer property to your children or other heirs at a reduced tax cost. It’s especially beneficial if you’re willing to forgo investment income on an asset for a period of time but do not want estate or gift taxes to reduce the principal passed on to heirs. With a lead trust, you can carry out your charitable wishes over the coming years while saving on taxes. 

Charitable Remainder Trusts

A charitable remainder trust offers the benefits of a gift and an investment plan. You place assets in a charitable trust, and you—and/or the other beneficiaries—receive income. After the termination of the trust, the Texas A&M Foundation receives the remainder, to be used as you specify, to benefit Texas A&M. Because they offer both income and tax advantages, charitable trusts can work well for donors and their families, and for Texas A&M. In fact, charitable trusts are often referred to as “give-it-twice” trusts. Donors often fund charitable trusts with appreciated securities or real estate, though some use cash or other assets to establish the trust. If a large percentage of a donor’s total assets is concentrated in one type of asset or security, a charitable trust can help diversify the investments, because the assets placed in the trust are sold and reinvested in a more diversified manner.

There are two main types of charitable remainder trusts:

Charitable Remainder Unitrusts: Donors receive a fixed percentage payout based on the value of the assets in the trust (revalued annually).

Charitable Annuity Trusts: Donors receive a fixed dollar payout based on the value of the assets when the trust was created.

Charitable Gift Annuity

A gift annuity also provides you with income when you make a gift that benefits Texas A&M. You agree to donate assets that the  Texas A&M Foundation then reinvests. The Foundation agrees to make fixed payments to you—and another beneficiary, if you desire—for life. At the end of the agreement, the remaining assets are your gift to support A&M. A charitable gift annuity is particularly attractive because the rates (which are based on the ages of the beneficiaries) may produce higher yields than you would receive in bonds or certificates of deposit. When combined with partially tax-free payments, the effective rate of return is even higher.

Retained Life Estate

This type of gift lets you enjoy the tax advantages offered by a charitable gift of real estate to the Texas A&M Foundation and continue living in your personal residence for the rest of your life. Although you reserve your right to use it for life, a gift of your primary home, farm or ranch, vacation home, or condominium results in a charitable deduction on your income-tax return.