| Do I need to retain legal counsel to establish a planned gift at HMS? Because a trust is a binding legal agreement, we advise that you consult with your attorney before establishing a trust with Havard Medical School. How can I judge which type of charitable trust is best for me? The charitable remainder unitrust pays the income beneficiary a variable income, based on a fixed percentage of the trust assets as determined once each year. One of the advantages of a unitrust is that your income from the trust can increase as the trust principal grows over time. A unitrust, however, provides no guarantee that this will happen. The income you receive could stay the same or even decrease, although the past record of the Harvard Management Company’s trust management suggests that it will increase. The annuity trust pays the income beneficiary a fixed annual income determined at the outset. The annuity trust may be desirable if you are more interested in the security of a constant return than in the long-term growth potential of the unitrust. Can I split my gift among other organizations? Yes. If you establish a charitable remainder trust, you can assist another charitable organization in addition to Harvard. Please discuss this option with the planned giving office. How much of a charitable deduction will I get? This depends on the ages of the income recipients, the size of your gift, the size of the distribution recipients will be receiving and the federal mid-term rate, a number calculated monthly by the U.S. Treasury Department. Our gift planning department can provide you with a detailed proposal which will include an estimated deduction. Does Harvard Medical School need to know my bequest intentions? We recognize that you might wish to keep your bequest intentions confidential. If you are willing to inform us, however, knowledge of your intentions help HMS in its financial planning, and you would qualify for membership in the Ezekiel Hersey Council (link). Harvard Medical School established the Council as a means to honor alumni and friends who have supported the School through their estate plans or with a life income gift. What are the advantages of making a bequest to Harvard Medical School? For many donors a bequest offers the opportunity to make a more substantial gift than would be possible during the donor’s lifetime. Other donors view a bequest as an opportunity to give a lasting legacy to HMS. What is an endowed gift? An endowed gift is a gift that Harvard Medical School holds in perpetuity. The gift is invested, and only a portion of its average annual investment return is used for purposes specified by the donor. The remaining investment return is added to the principal, so that the principal maintains its value over time. Thus, a donor who creates an endowed gift today can be confident that it will grow and continue to support Harvard Medical School in the years to come. Can I designate the use of a life income gift? Yes. Any assets remaining after the lives of the designated beneficiaries are used for the purposes specified by the donor. You can have the satisfaction of supporting students and faculty in scholarship, education, basic science research, or other programs that match your interests and causes you care about most. |
