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Giving Home > Donor Stories > Planning for Family and Philanthropy

Planning for Family and Philanthropy

Michael and Kelly, retired engineers with two adult children, had spent years building a comfortable life. They owned a home, held appreciated stocks, and had substantial retirement savings in their IRAs. As they began planning their estate, they wanted to ensure their children were cared for and that their legacy would support causes close to their hearts.

  • Kelly:"We had more in our IRAs than we'd ever need. Naturally, we thought about passing it on to our children."
  • Michael: "But our advisor explained that leaving retirement assets to family could result in a significant tax hit. We didn't want our children burdened with unnecessary taxes."

Their financial advisor proposed a thoughtful solution: leave their home and stocks to their children and designate their IRAs to charity. Because nonprofits can receive IRA assets tax-free, this strategy would maximize the impact of their giving while minimizing taxes.

At the top of their charitable list was Utah Valley University (UVU) - an institution they deeply admired for its commitment to education and community impact. They also chose to support a few other nonprofits that had played meaningful roles in their lives.

  • Michael: "It was surprisingly easy. We used our IRA custodian's website to allocate percentage shares to each charity."
  • Kelly: "This plan met all our goals. Our children could sell the house and stocks with little or no tax due, and we were thrilled to make a lasting contribution to UVU and other organizations we care about."

What is an IRA gift?

An IRA charitable rollover is a way to make a gift to support students at Utah Valley University from your IRA.

Choosing the Right Assets for Giving

Your retirement plan, such as an IRA or 401(k), is likely one of your most valuable assets. While it's a great resource for you during your lifetime, it may not be the most tax-efficient asset to leave to your children. If your estate is taxable, retirement accounts can be subject to both estate tax and income tax when passed to heirs.

That's why many tax advisors recommend leaving retirement assets to a nonprofit organization instead. When you designate a charity like Utah Valley University (UVU) as a beneficiary of your IRA or 401(k), the gift:

  • Avoids income tax that would otherwise be due from heirs,
  • Qualifies for an estate tax deduction, and
  • Supports a mission you care about deeply.

Let's Talk About Your Legacy

If you're evaluating which assets are best to leave to family and which are ideal for charitable giving, we'd love to help. Our team at Utah Valley University can work with you and your advisors to create a plan that:

  • Honors your philanthropic goals,
  • Reduces your tax burden, and
  • Maximizes the gifts you leave to both loved ones and the causes you care about.

Contact us today to explore how your retirement assets can make a lasting difference at UVU while minimizing taxes for your loved ones.

Please note: The information above is representative of a typical donor and may or may not be an actual donor to our organization.