One of the best ways to support our students is by considering a planned gift to the College. Making a planned gift can be as simple as including Iona in your estate plans – a gift that costs you nothing right now and that could save you thousands of dollars in taxes later.
Planned Giving – one of the most effective ways to create a legacy
Estate planning is an issue that few of us want to address, but maybe one of the most important things you can do to protect your spouse, children, and the causes you support. More than 64% of all Americans do not have an estate plan; the lack of a will or estate plan means they have no way of ensuring that their wishes are followed and intentions fulfilled.
Estate planning is a sensitive, personal issue that can involve your spouse, children, members of your family and your financial and tax advisors. By making your estate plan, you can take care of the needs of your spouse and family members as well as remember the causes and charities that you hold dear.
There are several ways you can remember Iona College in your estate plans. Many of them can help you and your family.
Every year, you are legally required to withdraw what is known as a Required Minimum Distribution (RMD) from your IRA. RMDs can significantly increase your annual gross income, greatly increasing your income taxes. You are required to take an RMD even if you do not need the money.
If you are 72 or are already required to take an RMD, you can limit your taxes by making a Qualified Charitable Distribution (QCD), also known as a rollover donation) from your IRA directly to Iona College. By taking advantage of this strategy, you can lower your tax burden while helping to educate today's Iona students. This investment in Iona can be particularly attractive if you are still working, have sufficient retirement assets, or find yourself in a higher tax bracket because of the RMD. You can transfer up to $100,000 directly out of your IRA every year, and the gift is tax-free regardless of whether you itemize your deductions.
If you are 70 ½ or older and still contributing to an IRA as allowed by the SECURE Act, check with your financial advisor to make sure you can maximize your tax benefits.
A charitable bequest is certainly the most popular and enduring planned gift. Bequests are a favorite with donors because they are a gift planning strategy that gives you the opportunity to leave a lasting legacy while retaining full use of your property during your lifetime. With a bequest, there is no disruption of your lifestyle and no immediate out-of-pocket expense. You will not earn a charitable income tax deduction during life, but your estate will receive an estate tax deduction for the value of gifts left to the College.
Creating a Will
Most people associate a will with entering their golden years, but it is one of the most important documents you can create, regardless of your age. A will is the only way to protect your spouse, partner, children and assets – without a will, the state will decide what happens to your assets and how they are divided.
Iona College can help. We have partnered with FreeWill, an online resource that allows you to create a simple, legal will that can document your wishes. If you prefer to speak with an attorney before finalizing your will, FreeWill is a great place to organize your intentions and save time. The average FreeWill user completes their will in less than 25 minutes.
As you use FreeWill, we invite you to consider making a gift to the College through your estate plan. Freewill is, however, just that – a free estate planning service. It is not necessary to make a gift to the College to use the service, and you are under no obligation to do so.
For those using an attorney to help define their estate plan, here’s some sample language you can use to help define your intentions. As with all legal documents, please consult an attorney who can assist you with the exact wording for your bequest.
If you are considering making an outright bequest to Iona College, we recommend the following language:
Bequest of a Specific Dollar Amount
I hereby give, devise and bequeath $(DOLLARS) to Iona College, a nonprofit organization located at 715 North Avenue, New Rochelle, NY 10801, Federal Tax ID # 13-3508093, for Iona College's general use and purpose.
Bequest of Specific Real Estate
I hereby give, devise and bequeath all of the rights, title and interest in and to the real estate located at (ADDRESS OR DESCRIPTION OF PROPERTY) to Iona College, a nonprofit organization located at 715 North Avenue, New Rochelle NY 10801, Federal Tax ID # 13-3508093, for Iona College's general use and purpose.
If you are considering making a bequest of a percentage of your estate to Iona College, we recommend the following language:
I hereby give, devise and bequeath XX percent (XX%) of my total estate to Iona College, a nonprofit organization located at 715 North Avenue, New Rochelle NY 10801, Federal Tax ID #13-3508093, for Iona College's general use and purpose.
I hereby give, devise and bequeath to Iona College, a nonprofit organization located at 715 North Avenue, New Rochelle NY 10801, Federal Tax ID #13-3508093, (ALL OR A PERCENTAGE) of the rest, residue and remainder of my estate to be used for Iona College's general use and purpose.
Making Iona the beneficiary of your qualified retirement plan can result in a transformational gift to the College and significant tax savings for your estate and heirs. IRAs are subject to both income taxes and estate taxes after the owner dies, possibly resulting in overall taxes of 60% or more. The new SECURE Act places additional restrictions on giving IRAs to your heirs, with the new law mandating that the IRA must be liquidated in ten years. This income could result in an additional tax burden for those receiving IRA. Donating your IRA will avoid these taxes.
You can name Iona College as the beneficiary of your 401(k), 403(b), IRA, Keogh, or profit-sharing pension plan or other qualified retirement benefits by simply calling your plan administrator and requesting a “Change of Beneficiary” form. Use our legal name "Iona College" and Federal Tax ID, 13-3508093.
You will continue to retain the use of the plan during your lifetime. Consult with your tax advisor regarding the benefits of making this gift.
You're looking to make smart investments for the future that meet your individual needs for growth or succession. You'd like to repay Iona College in some way for your advancement and opportunity over the years. What are your options for current planning and future gifts?
Starting a charitable gift annuity or charitable remainder trust may be very beneficial to you now and your estate later. How do you decide which asset to give? Why not let us assist you in your decision by contacting Stephen Auger at (914) 637-7749 or firstname.lastname@example.org.
When you designate Iona College as the beneficiary and owner of a whole-life policy, there is an income tax deduction available to you.
Use our legal name (Iona College) and our Federal Tax ID number (13-3508093) and simply contact the insurance company to request a Change of Ownership or a Change of Beneficiary form.
Under some circumstances, you can deduct your annual premium payment. Your deduction will vary depending on whether the policy is still being paid, fully paid, or has an outstanding loan.
- Iona accepts gifts of real estate, artwork and other tangible assets. Contact your financial advisor or the Iona College planned giving department to find out the best way to make these gifts and maximize your tax advantages.