Planned giving is one way to give back and establish your legacy at IU South Bend. If you are considering a planned gift to IU South Bend, here are several ways to make that gift.
You can make a meaningful yet flexible gift simply by designating IU South Bend (via the Indiana University Foundation, Inc.) as a beneficiary of a life insurance policy, revocable trust, or retirement fund, allowing the asset to pass directly to the IU Foundation at the time of transfer. Documenting your designation with a planned gift agreement will insure that your gift is used for purposes meaningful to your desired legacy. Choosing beneficiary designation for a retirement plan (and leaving other assets to loved ones) can also provide income tax relief for your heirs, in addition to potential estate tax savings, which can be significant considering their severity. Should your needs or plans change, flexibility remains as your beneficiary information may be updated.
Bequests in your will
A gift in your will is an easy way to make a planned gift to IU South Bend. When you make a gift in your will, you retain full use of your property, so there is no disruption of your lifestyle and no immediate out-of-pocket cost. You may simply direct a portion of your estate (a specific asset, amount, or percentage) to one or more of your favorite charities. A will is important to insure that you make your own choices regarding the disposition of your estate; without it, the government will make decisions for you. You may also document your intent in a will regarding the use of your gift, or you may leave it unrestricted; but you must designate it for the benefit of the IU South Bend campus.
Gift of retirement plan assets
Many individuals are now using retirement account assets in their charitable gift planning. Why? Retirement account assets are highly taxed—once in the estate, and then as income to the beneficiaries. Stocks, bonds, mutual funds, and real estate are not subject to income tax when they transfer to heirs. Therefore, retirement account assets are among the best planned gift methods, allowing you to ultimately leave more to your intended beneficiaries.
Qualified charitable distributioin (QCD)
For donors seventy and half years old and above who have IRAs, up to $100,000 may be gifted directly from your IRA to IU South Bend via the IU Foundation. Your gift may be used to satisfy all or part of your annual required minimum distribution. Normally, distributions from your IRA are taxable at ordinary income tax rates. However, a Qualified Charitable Distribution will be fully excluded from taxable income. Note that the distribution must be made directly from the IRA to the charity, and as the distribution is excluded from your taxable income, it is not eligible as an itemized charitable deduction, as may be appropriate.
Consult a Professional
If you have a will and previously worked with an estate-planning attorney, it is a good idea to include that person in your planning process when designating or updating your beneficiaries. Your attorney can make sure that as you add or adjust pieces to your estate plan, it remains cohesive and logical for your current circumstances. Allow us to help make sure your gift is directed as you intend. Please contact us to make sure the correct language is used in your planned gift.