Support MUS
Planned Giving

Appreciated Assets | Life Income Gifts | Life Insurance | Bequests | Retirement Assets

It is said that education opens the doors to life. When Memphis University School was established in 1893, it was the result of the vision of many generous donors who wanted a learning institution for young men dedicated to providing a framework for practical knowledge, while encouraging innovation and building character. Their vision included hiring the best educators and creating a state of the art facility in which boys would become gentlemen. Conduct was as integral a part of learning as math and English.

The traditions that were established all those years ago have had a vital impact upon our city. Today, alumni continue to be active leaders throughout the community.  The vision of our founding donors is as important today as it was more than 100 years ago. MUS is a lasting testimony to all who have supported the school throughout its history. We continue to look toward the future. There are generations of students yet to enroll, all deserving the best education possible in order to become the future leaders of our communities, our nation, the world in which we live.

The following information offers you an opportunity to be part of the school's future by being a part of its tradition. Since we first opened our doors, many of our most significant gifts have come to the school as planned gifts, making a permanent impact on the institution and its students. MUS continually seeks to raise funds to move us forward as we hold steadfastly to the traditions upon which we were founded. Planned gifts will play an important role in our success.

Crest & Cornerstone
The Crest & Cornerstone Society recognizes individuals who have ensured the future strength of the school by including MUS as a direct beneficiary in their estate plans. Planned gifts help strengthen our endowment, funding the school in perpetuity. You can help achieve important goals for MUS by taking one of the following pathways to planned giving. Many of these giving opportunities also provide benefits directly to you such as income tax deductions, reduced capital gains taxes, and/or reduced estate taxes. In addition, you can provide income for life for you or your loved ones.

If you would like more information on how to become a member of the Crest & Cornerstone Society or on any of the planned giving options presented here, please contact:

Perry Dement
Director of Development
(901)260-1350


The Gift of Appreciated Assets

Our tax laws are structured so that you benefit when you give as generously as possible to your favorite charitable organizations. Gifts of those assets that have increased in value since their purchase are particularly attractive under our current tax laws. Consider that:

  • sales of stocks, bonds, mutual funds, and real property that have appreciated in value generate a taxable capital gain;
  • gifts of those appreciated assets to MUS are deductible at their full fair-market value if they have been held longer than 12 months;
  • the fair-market value of the asset(s) can be deducted up to 30% of the donor's adjusted gross income;
  • excess deductions can be carried forward into as many as five additional tax years.
Therefore, your benefit is a deduction of not only your cost of the asset, but includes the appreciation of the asset as well — without incurring a capital gains tax.

For example, Mr. Phillips inherited some stock from his mother in 1948, which has a cost basis of $3,000. The stock has a current fair-market value of $53,000. Mr. Phillips makes a gift of the stock to establish a memorial in his family's name.

MUS has the benefit of a $53,000 gift. Mr. Phillips has the benefit of a $53,000 income tax deduction (up to 30% of his adjusted gross income) which can be used in the year of the gift, and if necessary, carried over into as many as the next five years. He also avoided a capital gains tax on the appreciated value of the stock. Most importantly, Mr. Phillips has perpetually memorialized the family name in a permanent relationship with MUS.

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Life Income Gifts
A life income plan gift allows you to make a gift to MUS and receive payments from your gift. Such gifts include charitable gift annuities, charitable annuity trusts, and charitable unitrusts. Each plan allows you to help MUS in the future and enjoy immediate benefits, in exchange for your future contribution.

Your benefits include:
  • the opportunity to receive fixed or variable payments for life;
  • the opportunity to provide income for a surviving beneficiary;
  • income tax deductions which can be taken in the year the life income plan is established and can be carried forward into as many as five additional tax years if necessary;
  • avoiding or reducing capital gains tax when using appreciated property to fund certain life income agreements;
  • savings from estate and inheritance taxes on assets transferred to MUS.

For example, Mr. and Mrs. Allen have $100,000 of highly appreciated stock. They would like to make a significant gift to MUS, but want to retain an income from their asset for the rest of their lives. They can transfer the stock to MUS and create a life income plan, which will pay them a fixed amount each year. Or, they could create a plan to pay a percentage of the fair-market value of the asset each year. In either case, Mr. and Mrs. Allen are entitled to a significant charitable income tax deduction and would avoid all of the capital gains tax at the time of the gift.

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Gifts of Life Insurance
Life insurance is a very under-used asset in charitable giving, yet its flexibility makes it possible for virtually everyone to make a meaningful gift. Here are a few possibilities:

Give a Paid-Up Policy
Most people own a life insurance, and many have policies that have outlived their original purpose. For instance, policies for a college education, those insuring a business, or those protecting a mortgage can make excellent gifts when given to MUS. And, the donor can deduct the replacement value of the policy.

Buy a New Policy
Purchasing a life insurance policy may be the most beneficial way to make a significant gift to MUS. By purchasing the policy and naming the school as owner and beneficiary, the premiums you pay become tax deductible. Thus, for a small amount each month, you can guarantee that the school will receive a sizable gift in the future.

Buy Insurance to Replace a Bequest
Some people find they can make a current gift of assets they had planned to bequeath in their wills. They receive charitable deduction benefits now, remove the taxable asset from their estate, and replace the bequest by buying a life insurance policy for that amount. They enjoy the satisfaction of giving and receiving the tax deduction now, when they need it most. The beneficiaries will still receive the same amount through the non-taxable insurance benefit.

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Bequests
Those organizations that benefit from your current generosity will miss your support after you are gone. By including them in your will, you can ensure that your giving will continue in perpetuity. There are several ways to make distributions though your will. You can give:

Percentage
"I give, devise, and bequeath to Memphis University School of Memphis, TN, _____________% of my estate."

Specific Dollar Amount
"I give, devise, and bequeath to Memphis University School of Memphis, TN,  $_____________."

Specific Property
"I give, devise, and bequeath to Memphis University School of Memphis, TN, (DESCRIPTION OF PROPERTY), located at (EXACT LOCATION)."

Residue (whatever is left over after other bequests have been granted)
"All the residue of my estate, including real and personal property, I give, devise, and bequeath to Memphis University School of Memphis, TN."

These forms are samples only, not intended for actual use in your will, Consult your attorney when preparing any legal document.

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Gifts of Retirement Assets
You may find that gifts of retirement assets can save your heirs undue tax burdens and allow you to accomplish your charitable objectives. When you bequeath retirement assets to your heirs, you are leaving them taxable assets. After your heirs pay the taxes due on these assets, their inheritance will be considerably less than the original amount. However, if you bequeath retirement plans assets to MUS, no one will have to pay income taxes on the assets. This will allow you to make a larger gift, and possibly save other non-taxable assets for your heirs.

For example, suppose Mrs. Davenport decides to leave her IRA to MUS in her will. Her estate will receive an estate tax deduction, and she will pay no income tax on the earnings that enjoyed tax-free accumulation during her life.

You may also want to consider setting up a charitable trust with retirement assets. With a trust, you simply transfer your retirement assets to MUS as the last beneficiary. The trust can provide payments for your spouse, or another loved one, for the rest of his/her life. After the death of your spouse, the assets remaining in the trust can be used by MUS. There will be no estate or income taxes imposed on the assets at the time of the gift.

This information in not intended as specific legal advice. Consult your attorney when considering any legal matter. State laws which govern wills and contracts vary and are subject to change.

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