Planned gifts are an exciting way loyal Hokies can leave a lasting legacy on Virginia Tech Athletics. When thinking about setting up a planned gift here some things you may want to consider.
When contributing a gift of real estate, the donor receives an income tax deduction and avoids capital gains taxes. In addition, donors of outright gifts typically avoid maintenance costs, property taxes, insurance, and other on-going expenses.
Supporting Virginia Tech with a gift of securities can provide significant tax benefits for the donor – bypassing capital gains taxes and providing a valuable income tax deduction – both of which effectively reduce the cost of making a gift.
Other avenues to consider:
Donor Advised Funds, Retirement Accounts, Foundations and Trusts
Certain restrictions apply regarding VTAF point priority if you are interested in making a gift through these types of gifts. Please contact a VTAF representative for more information.
Although outright gifts provide crucial resources for current programs, deferred gifts build the foundation for the future. Giving through estate plans or life income gifts is particularly suitable for those who would like to support the Virginia Tech Athletic Fund with a significant future gift that may not be possible to make outright.
Bequests are simply estate gifts given through a will or revocable trust.
The simplest way to make a future gift to Virginia Tech Foundation is to name the Virginia Tech Foundation, Inc., as a beneficiary in your will or revocable trust. These estate gifts come to the university after the donor passes away. A bequest donor:
Depending on the size of the estate and the amount of the charitable bequest, a donor may avoid estate taxes on the bequest itself and, as a result, the remainder of the estate may be in a lower tax bracket, benefiting their heirs.
IT IS IMPORTANT THAT YOU NAME “THE VIRGINIA TECH FOUNDATION, Inc., IN SUPPORT OF ATHLETICS,” IN YOUR BEQUEST
Typical types of bequest gifts include a percentage of your estate, a specific dollar amount or asset, or other arrangement. A donor should discuss with their attorney the best way a charitable gift can help him/her meet their estate planning goals.
Sample bequest language:
Percentage of Estate Clause: “I leave _______ percent (____%) of my estate to the Virginia Tech Foundation, Inc., in support of athletics. This bequest shall be used for (or to endow) the (named scholarship, professorship, unrestricted, etc.).”
More information and sample bequest language.
Let the Hokie Club know about a bequest or other future gift provision.
Life Income Gifts
Life income gifts are designed to provide payments to the donor as well as a charitable gift to the university. Virginia Tech offers three kinds of life income gift plans: charitable gift annuities, charitable remainder trusts, and a pooled income fund. In each of these plans the following happens.
Depending on the plan chosen, donors may begin receiving payments from their life income gift immediately, or defer payments to being at a later time, such as a planned retirement date.
Estimate the payments received from a life income gift with our online gift calculator.
Charitable Lead Trusts
Charitable lead trusts are often used to transfer significant assets to family members at a future date with the intent of avoiding large estate or gift tax consequences.
Through this special gift arrangement, donors can use an asset to provide an income stream to Virginia Tech — beginning now and lasting for a specified number of years — and in the future, pass the remaining assets to those you name.
If the term of years is long enough, and the rate of payout high enough, it is possible to pass assets to heirs free of estate taxes.
Charitable lead trusts may also be appropriate for reducing income taxes in years when donors have unusually high income that places you in a higher tax bracket, or to generate cash from immediate tax savings that can be invested in a unique opportunity.
Retirement Account Gifts
Assets accumulated in tax deferred retirement accounts such as IRAs, 401(k)s, 403(b)s, and SEPs, can fund deferred gifts.
Since retirement accounts are subject to income taxes in addition to possible estate taxes, they are less valuable to heirs than to charities, which pay no income taxes or estate taxes. Selecting these assets for deferred charitable gifts means that your heirs inherit more valuable and tax–favored assets.
To make such a gift, simply obtain a beneficiary designation form from the company managing your retirement account and name the Virginia Tech Foundation, Inc. as a beneficiary of your account.
Because retirement accounts are important and complex assets, advice from an attorney or other advisor is encouraged to ensure consistency with other estate plans.
Life Insurance Gifts
There are various ways to support Virginia Tech with an outright gift of life insurance. Paid up or whole life insurance policies can be used as a contribution to support the Hokie Club.
Retained Life Estates
A retained life estate gift can allow the donor and a surviving beneficiary – usually a spouse – to remain in their home or farm throughout their lifetime. With such a gift, the donor would deed the property to the Virginia Tech Foundation, Inc. while retaining lifetime use. The donor gains an immediate charitable gift deduction and avoid capital gains taxes on appreciation.
This gift plan can simplify the administration of an estate, freeing heirs from the burden of selling the property. When it is no longer needed, the gift will be used as you specify to support Virginia Tech.
For more information on any of the above planned giving avenues, please contact the Hokie Club Office at (540)- 231-6618