Planned Giving Options
Just as there are many ways your IGNITE support can enhance the University of Illinois College of Medicine Peoria (the “College”), there are a variety of giving methods that will help you align your financial and philanthropic goals. We can work with you and your advisors to develop a giving plan that best fits your objectives.
Charitable gift decisions involve careful consideration of the assets to be transferred and instruments to be used. We invite you to review the information below to learn about some common planned gift methods. Regardless of which method you choose, please note that all gifts should be made to the University of Illinois Foundation (“UIF”) for the benefit of the University of Illinois College of Medicine Peoria.
Gifts of Securities
Publicly traded stock and mutual funds with large unrealized profits (long-term capital gains) make great gift options. The profit on your donated securities will escape taxation and your charitable deduction will be the full market value of your investment as long as you have held your asset for more than one year. Your gifts of securities may be deducted up to 30 percent of your adjusted gross income with a five-year carryover for excess deductions. Please contact UIF’s Office of Cash Receipts at [email protected] or 217-244-0352 for our current gifts of securities DTC instructions.
Charitable IRA Rollover
After you have attained the age of 70½, you are permitted to transfer up to $100,000 annually from your IRA to a qualified charity like UIF. The funds must come directly from your IRA provider with the check written to UIF. The direct transfer has two main benefits: 1) Any funds transferred will count towards or cover your required minimum distribution (“RMD”) for the tax year of your transfer, and 2) distributions are not added to your taxable income. (Please note that while you will not receive a charitable deduction for these gifts, excluding them from your income is more advantageous than a deduction.)
To make your rollover gift, instruct your IRA administrator to send a check payable to the “University of Illinois Foundation” to 1305 West Green Street, Urbana, IL 61801, for the benefit of the College. Please also ask your broker to include your name and desired designation on the check’s stub.
A bequest is one of the simplest ways to make a deferred gift. You can make a bequest by including UIF – for the benefit of the College – in a provision of your will or living trust. Your bequest can be for a specific amount, a specific asset or a percentage of your estate. Any of these options will allow you to make generous gifts while maintaining control of your assets during your life. Please note that bequests to UIF are not subject to estate tax and similar options also exist for retirement plan or whole life insurance beneficiary designations as well as transferable-on-death or payable-on-death accounts. Our Director of Gift Planning can work with you or your advisor to develop customized bequest language that accurately reflects your wishes to support the College and ensures your gift will be used as you intend.
Charitable Gift Annuities
A charitable gift annuity (CGA) is an easy, popular option that allows you to transfer cash or appreciated, marketable securities to UIF. In exchange, you – or up to two people you choose – receive a fixed annual payment for life. After the income beneficiaries pass away, the remaining funds are used to support the purpose of your choice at the College. CGA donors also receive an immediate income tax deduction, subject to applicable limitations, and, in most cases, a portion of their payments tax-free. CGAs also offer capital gains tax savings should you decide to use appreciated securities to fund your annuity.
The minimum amount necessary to create a CGA is $10,000, and all income beneficiaries must be at least 60 years of age when payments begin. CGAs are not available in a small number of states. Please contact our Director of Gift Planning for a free, no-obligation illustration or further information.
We also have options that allow you to transfer assets to UIF to create a trust that will then make payments to you or up to two others for life, for a term that doesn’t exceed 20 years, or a combination of the two. When your trust terminates, its remaining assets are used to support the purpose of your choice at the College. These trusts must be created with at least $50,000 in assets. UIF will serve as trustee where at least 50 percent of the trust’s remainder benefits UIF to support the College and the trust’s beneficiaries are at least 55 years old.
Other charitable trust options allow you to provide annual gifts to UIF for the benefit of the College for a set term and, at the end of that term, pass the remaining assets to individuals you designate. You decide how long payments will be made to UIF and when the remaining assets will be distributed to your benefitting individuals. This option may reduce gift, estate and generation-skipping transfer taxes. Our Director of Gift Planning can also provide you with a free, no-obligation illustration or further information for any of these options.
Retained Life Estate
A retained life estate allows you to gift, at your passing, your personal residence or farm to UIF for the benefit of the College while allowing you and/or other named beneficiaries to live on the property during your life. Upon the death of all beneficiaries, UIF will receive your property with the right to sell it to support the purpose of your choice at the College. Benefits include escaping all capital gains tax on your property’s appreciation and the property being removed from you taxable estate. A retained life estate agreement is irrevocable, and the College will not realize your gift until the passing of all the named beneficiaries. Like all gifts of real estate, UIF collects and reviews information about each proposed retained life estate before accepting it.
For further information about any of these options, please contact UIF’s Office of Gift Planning and Trust Services (217-244-0473 or [email protected]); we also invite you to visit uic.giftplans.org to learn more.
The University of Illinois Foundation does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.