TESTAMENTARY BEQUEST GIFTS
TO RADFORD UNIVERSITY AND THE RU FOUNDATION
Some of the largest gifts made in support of Radford University have been testamentary gifts. Fortunately, today's federal estate tax laws favor testamentary gifts. With the potential for combined federal estate and state death tax rates reducing significantly the size of an estate, a testamentary gift can be a desirable way to support Radford and reduce estate taxes.
Bequest Gifts
A bequest may provide for a specific dollar gift, a percentage of your estate, or specific asset(s) to be given to Radford University in support of its various programs and endeavors. A bequest may also be in the form of a gift of the remaining assets of one's estate. Bequests, like other gifts, can be designated for many purposes or given without restriction.
Unrestricted Bequests
An unrestricted bequest is one intended for the general and best use by the University at its discretion. Such a bequest might read:
"I give, devise, and bequeath to Radford University (through the Radford University Foundation, Inc.), Radford, VA. (the sum of $________) (____ percent of my estate) (the following property) (the rest, residue, and remainder of my estate). The property comprising this gift may be used to further the educational purposes of Radford University at the discretion of its Board of Visitors.
Restricted Bequests
Donors may restrict the usage of their bequests. A restricted bequest might provide as follows:
"I give, devise, and bequeath to Radford University (through the Radford University Foundation, Inc.), Radford, VA, (the sum of $______) (______ percent of my estate) (the following property) (the rest, residue, and remainder of my estate). The property comprising this gift shall be used for (state purpose). If, in the opinion of the trustees of the University, or their successors, the need for funds for the charitable purpose described above no longer exists at some future date, the trustees, or their successors, are authorized to use these funds in the best interest of the University."
Bequests to Establish Endowments
Both unrestricted and restricted bequests may be designated to establish endowment funds:
Unrestricted Endowment
"I give, devise, and bequeath to Radford University (through the Radford University Foundation, Inc.), Radford, VA, (the sum of $______) (______ percent of my estate) (the following property) (the rest, residue, and remainder of my estate). The property comprising this gift may, for investment purposes, be merged with the general investment assets of the Radford University Foundation, Inc. The gift shall be entered into the UniversityFoundation’s books and records as The _______________ Fund and shall always be so designated. The spendable income therefrom, but not the principal, shall be used to further the purposes of Radford University in such manner as the trustees may direct."
Restricted Endowment
"I give, devise, and bequeath to Radford University (through the Radford University Foundation, Inc.), Radford, VA. (the sum of $______) (______ percent of my estate) (the following property) (the rest, residue, and remainder of my estate). The property comprising this gift may, for investment purposes, be merged with the general investment assets of Radford University . The gift shall be entered into the University Foundation’s books and records as The _______________ Fund and shall always be so designated. The spendable income therefrom, but not the principal, shall be used for (state purpose). If, in the opinion of the trustees of the UniversityFoundation, the need for funds for the purpose described above no longer exists at some future date, the trustees, or their successors, are authorized to use these funds in the best interest of the University, provided that the identity of the fund is maintained."
It is recommended that restricted provisions be described as broadly as possible and that detailed limitations be kept to a minimum. Please consult with the Office of Planned Giving before drafting such provisions to assure that they can be implemented according to your desires.
Testamentary Life-Income Gifts
Charitable remainder trusts, charitable lead trusts, pooled income fund gifts and charitable gift annuities all may be established through a donor's will. While such a gift will not provide tax savings during the donor's lifetime, a testamentary gift may reduce estate taxes, provide life-income for a loved one, and provide new estate planning options.
Retirement Plans
Individual Retirement Accounts (IRAs), tax-sheltered annuities, Keogh plans, self employed plans (SEPs), 401(k), 403(b) and other qualified pension and profit-sharing plans can also provide significant support for Radford University. A donor needs to inform his retirement plan administrator that he wishes to name Radford University as a beneficiary of the plan. The funds will usually pass to Radford outside of probate and free of all taxes.
Life Insurance
A donor may name Radford University as a beneficiary of an existing life insurance policy. The proceeds will usually pass to Radford University outside of probate and free of all taxes.
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