Planned Gifts – Ways of Giving

Bequest

You can ensure your support of the James Graham Brown Cancer Center endures by making a provision in your estate plan.

The Brown Cancer Center may be named as the beneficiary through a bequest to receive:  1) gifts of property, real or personal; 2) a gift of a stated amount of money; or 3) a percentage of the remaining estate after other gifts have been made.

By naming the Brown Cancer Center in your will, you can avoid estate taxes on the amount designated.

To include the James Graham Brown Cancer Center at the University of Louisville in your will, simply use the following language:

I hereby bequeath to the University of Louisville Foundation Inc., a nonprofit corporation in Louisville, Ky. (________________ dollars or _____ percent of the rest, residual and remainder of my estate) for the benefit of the James Graham Brown Cancer Center at the University of Louisville.

A bequest may be designated to an area most personal to you, such as research, patient support, prevention and outreach, or to the areas of greatest need at the discretion of the Brown Cancer Center. Please contact us for more information about how you can support our work today and in the future.

Are you a secret admirer of the James Graham Brown Cancer Center? Have you included a provision in your estate plan to support our work? If so, we would be grateful to learn about your commitment and invite you to join our planned giving recognition program, the Founders Society. Please contact Kelly Wesley at (502) 562-4642 or kelly.wesley@louisville.edu to share the good news about your support or to request more information.

Charitable Gift Annuities

Gift annuities are a great way to increase your retirement income. They allow you to give assets to the Brown Cancer Center at UofL that the university reinvests. UofL agrees to pay you and or another person a fixed income for life then the funds become available for the university to use. You will receive an immediate income tax deduction for the present value of the assets contributed.

A charitable gift annuity is particularly attractive because rates are guaranteed and do not fluctuate with the stock market. Also, a portion of the payment is tax-free return of principal, making the effective rate of return even higher.

For example: John and Abigail Smith, ages 70 and 71, own $100,000 in securities, which yields $3,000, or three percent, in annual dividends.

The Smiths purchased their securities for $10,000 many years ago. If they sold the securities, they would need to pay capital gains tax on the gain of $90,000.

Instead, if the Smiths decide to give the securities to UofL to fund a charitable gift annuity (at a 6.2 percent rate of return), based on their age, they will receive:
Current Benefits: A charitable tax deduction of $24,137.
Annual Benefits: A guaranteed fixed income of $6,200 each year for their lifetime.
Future Benefits: Estate tax advantages and support of their favorite UofL programs.

Deferred Gift Annuity

With a deferred gift annuity, you will begin receiving payments at a future time, a date chosen by you the donor. Deferred gift annuities, as with immediate annuities, are attractive to persons looking to supplement future retirement income.

Irrevocable Charitable Trust Agreements

1. Charitable Remainder Unitrusts - You place assets in a trust, and you (and/or another beneficiary) receive lifetime income from it, then UofL receives the remainder. Charitable remainder unitrusts provide a variable income for life.

For example: Beth Johnson, age 60, has $100,000 worth of stock that pays two percent dividend, or $2,000 annually.
She decides to transfer the stock into a charitable remainder unitrust, naming UofL the beneficiary. She elects to receive quarterly payments at five percent of the unitrust's assets as determined annually. She will receive:
Current Benefit: A charitable income tax deduction for $39,000.
Annual Benefit: A payout of five percent of the determined value of the trust as estimated annually. The first year's income will be $5,000, five percent of $100,000.

Future Benefits: Estate tax advantages and support of her favorite programs at UofL.

2. Charitable Remainder Annuity Trusts - The trust pays fixed income for life and provides an immediate income tax deduction. For example, if a donor is disappointed in the yield from a current investment in the stock and bond markets yet wants to avoid capital gains tax should he sell, a charitable remainder annuity trust may be the answer.

This plan will pay the donor annually the same dollar amount he chooses at the outset. The income payments are fixed, based on the starting valuation. Then, after the donor's lifetime (and that of the surviving beneficiary, if desired), the trust remainder is available to support the university's mission.

Charitable Lead Trust

A charitable lead trust may allow you to pass assets to you family with significant estate tax savings while at the same time making a gift to the Brown Cancer Center. After the university receives income from assets in the trust for a period of years, the principal goes to your family, with estate or gift taxes usually reduced or even eliminated.

Real Estate

By donating property to UofL, you may avoid capital gains tax on the sale of a home or other real estate. In addition, your gift is tax deductible for the market value of your property.

Life Insurance

A gift of life insurance can benefit you and the university in many ways. If you name UofL as owner, you can receive an income tax deduction for approximately the cash value of the policy. If you name UofL as beneficiary you will receive an estate tax charitable deduction. Naming UofL as contingent beneficiary allows your family added security.

Retirement Assets

Retirement assets left to your spouse or family members are subject to income and estate taxes. You may avoid or reduce income and estate taxes on IRA's or otheremployee benefit plans by naming UofL as beneficiary of your retirement assets.

IRA Rollovers

On August 17 President Bush signed into law the Pension Protection Act of 2006 (H.R. 4). The law contains an IRA rollover provision which allows donors age 70 ½ or older to exclude from gross income distributions to charity of up to $100,000 from traditional individual retirement accounts (IRAs) and Roth IRAs. The provision is in effect for tax years 2006 and 2007 only. Learn more

Learn more

To learn more about planned giving opportunities, contact Kelly Wesley at (502) 562-4642 or kelly.wesley@louisville.edu.