A Bequest to Save Taxes
Thomas was a proud alumnus of Utah Valley University (UVU). As a widower, he often reflected on the role UVU played in shaping his life and career. The education he received opened doors to many opportunities, which had greatly benefitted Thomas and his family. He remained deeply grateful for the university's mission to help students build better futures for themselves and their families.
Having benefited directly from UVU's work, Thomas wanted to express his gratitude by making a meaningful gift from his estate.
Thomas met with his attorney and shared his desire to leave a bequest to UVU. His estate included appreciated stock, real estate, and a traditional IRA. After reviewing his assets, his attorney offered a thoughtful recommendation.
- Thomas: "My attorney explained that if I left the stock and real estate to my children, those assets would receive a step-up in basis at my death. That meant my children could sell them with little or no capital gains tax. But if I left them my IRA, it would be subject to both income and estate taxes, leaving far less for my family."
Instead, his attorney suggested that Thomas designate UVU as the beneficiary of his IRA. Because UVU is a charitable institution, it could receive the full value of the IRA without any tax burden, allowing Thomas to make a generous gift that would support future students.
Thomas contacted his IRA custodian, requested a beneficiary designation form, and named Utah Valley University as the 100% recipient of his IRA. His attorney then updated his will to leave the remaining assets, stock and real estate to his children.
- Thomas: "I was so impressed with my attorney's advice that I named him executor of my will!"
Thomas notified UVU of his bequest and was pleased to know that his legacy would help fund scholarships and student success initiatives. His gift will empower future Wolverines to pursue their education, launch careers, and create better lives for their families, just as he had.
What is a charitable bequest?
A bequest is a gift you can make to support Utah Valley University's mission in your will, living trust or with a codicil.
Is a bequest right for you?
It is easy and convenient to include a bequest in your will or living trust. This link includes sample bequest language that can very easily be included in your will.
You might find it helpful to print this page and the bequest language to give this information to your attorney. If you or your attorney have any questions, please contact us.
Please note: The information above is representative of a typical donor and may or may not be an actual donor to our organization.
