Frequently Asked Questions

“We make a living by what we get, but we make a life by what we give.” Winston Churchill

 

Q: What are the three kinds of gifts I can make to The University of Texas Health Science Center at Houston?
A: Generally speaking, during your lifetime you can make an outright gift of cash, securities or other property (e.g., real estate, personal property).

Upon your death you can make a gift through your will or with a distribution from a retirement plan or life insurance policy.

You also have the option of making a gift that returns lifetime income to you, your spouse, or other individuals, such as a charitable gift annuity, or charitable remainder unitrust or annuity trust.

 

Q: What sorts of assets can I use to make a gift?
A: Almost anything: cash, publicly traded securities, life insurance, the balance of your retirement account. Other assets
can be very valuable but are more complicated to administer and must be reviewed by us before we can accept them
as gifts: real estate, closely held stock, artwork and collectibles.

 

Q: What tax deduction will I receive for my gift?
A: It depends on the form your gift takes.

  • Outright gifts to The University of Texas Health Science Center at Houston generate an income-tax charitable
    deduction to the extent allowable by law. Outright gifts of appreciated securities are deductible at fair market value,
    with no recognition of capital gains – a great tax benefit!
  • Gifts of personal property such as, art, books and collectibles are fully deductible and will be accepted by the
    university if they are relevant to our mission. The Office of Institutional Advancement’s Gift Planning Program
    can advise you on this point.
  • Bequests do not generate a lifetime income tax deduction. They are exempt from estate tax, however.
  • If you have made The University of Texas Health Science Center at Houston the irrevocable owner and beneficiary
    of a life insurance policy during your lifetime, you may deduct annual gifts that offset premium payments.
  • The charitable deduction for a gift that returns income to you, such as a charitable gift annuity or a charitable
    remainder trust is the fair market value of the gift asset minus the present value of the income interest you retain.

 

Q: Can The University of Texas Health Science Center at Houston serve as the executor of my estate?
A: No. State law, the limitations of our corporate power, and our internal policies prevent us from taking such a role in
your affairs.


Q: I want to set up a life-insurance policy, name The University of Texas Health Science Center at Houston as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?
A: No. The IRS would not consider that a “completed gift” – they’d say that, as the owner of the policy, you could
change the beneficiary designation to a friend or family member. The University of Texas Health Science Center at
Houston must be made the irrevocable owner of the policy for gifts offsetting premium payments to be deductible.

 

Q: Can I transfer my IRA to The University of Texas Health Science Center at Houston to set up a life-income gift, and
avoid income tax on the transfer?
A: Congress is looking at new legislation for IRA charitable distributions. Please contact our Gift Planning Program for the
latest information on proposed legislation.

 

Q: I’d like to donate a painting. Will you determine its value for my income tax deduction?
A: No. We can’t. The IRS requires that donors of artwork and collectibles secure an independent appraisal of the items
to establish fair market value. The appraisal has to be related to the gift, too – an insurance appraisal won’t suffice.
The Office of Institutional Advancement’s Gift Planning Program can assist you on this point.

 

Q: I’m establishing a unitrust. My bank will serve as trustee, and I’m naming The University of Texas Health Science
Center at Houston as the remainder beneficiary. Will The University of Texas Health Science Center still
recognize me as a donor?
A: We are grateful that you have named us as a beneficiary, and we recognize you as a donor to the Health Science
Center. The charitable portion of your gift is deductible for income tax purposes.

 

For more information to help you plan wisely so that you can leave a legacy that benefits both you and the university,
please contact:

Shirley Druggan, M.Ed.
Director of Gift Planning
The University of Texas Health Science Center at Houston
Office of Institutional Advancement
7000 Fannin Street, Suite 1200
Houston, Texas 77030
713-724-7134 preferred
713-500-3382 office
Shirley.Druggan@uth.tmc.edu

 

 

The University of Texas Health Science Center at Houston
7000 Fannin, Suite 1200
Houston, TX 77030
713-500-3200 | 713-500-3216 (fax)
E-mail: Shirley.Druggan@uth.tmc.edu