Gifts by Will
Bequests are the most common form of planned giving and are gifts made through a will or living trust. The University of Illinois Foundation is often named beneficiary in the wills and living trusts of University alumni and friends.
Bequests may be stated as a percentage of the estate, as the residual of the estate, or for a specific dollar amount. Since a will can be changed, no income-tax benefits are associated with a bequest; however, the donor's estate is reduced by the amount of the bequest for estate tax purposes.
Since bequests do not become available in most cases for many years after the making of a will, many donors prefer bequests which are unrestricted or with as few restrictions as possible. Those considering restricted bequests are urged to review their proposed bequest with the Foundation. Bequests received by the Foundation are, of course, administered in accordance with the expressed wishes and desires of the donor. Unrestricted bequests have the greatest flexibility because the gift can be used for the University's greatest needs at the time it becomes available.
When naming the U of I as a beneficiary in a will or trust, or as a beneficiary or a contractual arrangement (e.g. insurance policy or retirement account), the following legal identity should always appear: "The University of Illinois Foundation, a not-for-profit corporation located in Urbana, Illinois." This language may continue on if a certain campus, academic unit, or both, is preferred as the recipient of the gift.
A plan which may appeal to a donor is one by which he or she establishes the guidelines for a permanent endowment with the intent of funding the endowment by means of a bequest. If the donor wishes to stipulate how the fund will be administered, a fund agreement between the donor and the U of I Foundation can be executed and referenced in the donor's estate plan document. Of course, the donor can also make gifts to this fund during his or her lifetime. The drafting of your will or living trust should be arranged with your attorney. Foundation representatives are available to confer with you and your attorney in drafting the appropriate bequest clauses.
You may prefer to state in your will or trust a sum of money, a percentage of your estate, a specific item, a work of art, or real estate that you wish to give to the University of Illinois Foundation.
Whatever form of bequest you choose, it is not subject to estate or inheritance taxes and so significantly reduces the tax burden of an estate. The value of the bequest may be deducted when the taxable estate is determined, and there is no limit to the deduction.
The U of I Foundation gift planning staff is pleased to answer your questions and offer assistance at any time. Please contact the Foundation to learn more.