UW HOME                             Issue 6, March 2009               UW FOUNDATION

 

A Bequest to UW – A Simple Way to Create a Lasting Legacy

In previous editions of Planned Giving Essentials, we focused on complex estate planning structures such as Charitable Remainder Trusts, Charitable Gift Annuities, Charitable Lead Trusts, and Retained Life Estates. Of course, all of these vehicles have their uses and are exciting for those of us in the profession to implement and to discuss in great detail. Although these gift opportunities have utility based upon a particular donor’s individual situation, they are in fact quite complex, time-consuming to implement, and ultimately not nearly as prevalent in charitable gift planning as the bequest. In this issue, we will focus on the nature of a charitable bequest, the common types of bequests, and how to further coordinate the provisions in your will or revocable living trust with a gift agreement at the University of Wyoming Foundation.

Nature of the Charitable Bequest  

In general, a bequest is the act of giving, leaving by will, or passing on to another a legacy of money, real estate, or securities, among other things. More specifically, a charitable bequest is simply a gift to the University of Wyoming through one’s will or revocable trust. The charitable bequest is the life-blood of planned giving programs—or any fundraising program for that matter. Many of the largest personal gifts to UW and other charitable organizations each year are in the form of bequests. Bequests span all dollar amounts for people from all walks of life, making it the most appealing type of gift. Indeed, for each multimillion-dollar charitable bequest you read about in the paper, countless other smaller gifts are made by people of lesser means.  

Common Types of Bequests

 A.   Giving a Specific Dollar Amount: One way to implement a charitable bequest is simply to state a dollar amount in your will or trust that you would like to gift to the University of Wyoming. If you plan to update your will on a regular basis and are certain that the funds will be available to satisfy this specific bequest, giving a specific amount may be a good option.  

Example Language: I give ten thousand dollars ($10,000) to the University of Wyoming Foundation (or its successor) located in Laramie, Wyoming, a nonprofit corporation organized and existing under the laws of the State of Wyoming, designated for the benefit of graduate scholarships within the College of Business.  

B.   Giving a Specific Property: If you know that the University of Wyoming can make use of a particular item or asset to further its mission, you may want to bequeath that property. We recommend that you always check with us or the specific college or unit that will ultimately benefit from the gift to make certain that the property can be accepted and put to its best use. Of course, if you sell or dispose of the property during your lifetime, there will be no gift to UW unless you direct otherwise in your will or trust.  

Example Language: I hereby give my collection of Warhol paintings to the University of Wyoming Art Museum to be added to and become a component part of the museum’s permanent collection.  

C.   Giving a Percentage of Your Estate: One method to ensure that the University of Wyoming receives a gift through your estate is by bequeathing UW a percentage of your estate. In this type of bequest, your charitable gift will automatically adjust with the total value of your property that passes under your will or trust.  

Example Language: I give thirty percent (30%) of my estate to the University of Wyoming Foundation (or its successor) located in Laramie, Wyoming, a nonprofit corporation organized and existing under the laws of the State of Wyoming, designated for the benefit of the Fay W. Whitney School of Nursing to be used to provide scholarships to single parents enrolled full-time in the nursing program.  

D.  Giving the Residue of Your Estate: One of the most common methods of making a charitable bequest is to provide for family members and loved ones and then to leave all or part of what is left to one or more charitable organizations. This type of giving assures that your family members will receive what you want them to have before any assets are distributed to the University of Wyoming.  

Example Language: The rest, residue, and remainder of my estate shall be paid over and delivered to the University of Wyoming Foundation, a non-profit corporation organized and existing under the laws of the State of Wyoming located in Laramie, Wyoming, for the benefit of the Department of Intercollegiate Athletics and for the following uses and purposes: University of Wyoming Basketball Excellence Fund.  

Endowment Agreements – How to Coordinate Your Bequest  

The University of Wyoming Foundation sometimes receives an estate gift that we didn’t know about—these gifts are always exciting because they simply appear on the doorstop of the Foundation without notice. More often, we are able to work with donors during their lives to assist them in implementing a gift or endowment agreement that specifies the programs and purposes they wish to benefit with their estate gift. In coordination with their estate planners, we help donors through the process and answer any questions they may have. This is a rewarding experience for the planned giving and development staff as it enables us to better understand the donor’s intent, to get to know the donor on a more personal level, and gives us an opportunity to personally thank donors for including UW in their plans in such a personal and meaningful way. If you have already made a bequest to UW or in the event you are considering a bequest, we would encourage you to contact us to learn more about endowment agreements.

Call Tracy R. Richardson, Director of Planned Giving, at 307-766-3934 or e-mail, trichar6@uwyo.edu, for more information about Retained Life Estates or any other planned giving opportunities at UW.

Have you visited our tax and planned giving library? I would encourage you to click on Gift Legacy below and spend some time looking around at all the wonderful resources we have made available to you as an Allied Professional.