The Office of University Advancement and Alumni Affairs helps alumni and friends create charitable gift plans that maximize their intentions for the University while implementing their plans to provide for themselves and their heirs. In addition to helping the University of Montevallo maintain a solid tradition of excellence, planned giving can reduce or eliminate capital gains taxes, generate a charitable income tax deduction, reduce or eliminate gift and estate taxes, and provide income for life.
While we welcome and encourage outright gifts, planned gifts offer additional ways to support the University and provide very specific tax advantages. Every planned gift helps the University carry out its mission of excellence and service in education.
Your estate gift ensures that your voice and values, your legacy, will remain at the University of Montevallo. Please contact University Advancement at 205-665-6215 or Scott Dillard at 205-665-6221 for more information.
The purpose of the 1896 Society is to recognize and thank the individuals who have made the University of Montevallo Foundation a part of their estate plans. Ways to give include bequests, life insurance, retirement plans, charitable gift annuities, charitable trusts and real estate.
Make a difference in the lives of tomorrow’s students by becoming a member of the 1896 Society today! Please contact Scott Dillard at 205-665-6223 if you would like more information on how you can leave a legacy.
Methods of Planned Giving
Several methods of planned giving are available. Some of the more common methods are described below.
A bequest can serve as a great vehicle for a planned gift. Donors may include the University of Montevallo Foundation in their will or estate plan for a specific amount or a percentage of their estate. Donors can also name the Foundation as the residual beneficiary of their estates after payment of bequests to others.
One significant benefit of making a bequest gift includes the fact that a donor does not have to part with any money until he or she dies and does not owe any estate tax on the amount of the bequest. There are different ways bequests may be established. For your convenience, here are some examples of Bequest Language available.
Life insurance can be an excellent way to make a gift. You can name the University of Montevallo Foundation as the owner and beneficiary of your life insurance policy. You would be entitled to a charitable income tax deduction for the value of the policy. You will also receive a charitable income tax deduction for gifts you make to the Foundation for the amount of the policy premiums that are due.
For the younger donor, taking out a new policy and naming the Foundation as the beneficiary is a very cost-effective way to make a significant gift to the University. The older donor may wish to give the University a paid-up policy that is no longer needed.
If you desire more flexibility, you may simply wish to name Montevallo as one of the beneficiaries of your life insurance. You are not entitled to an income tax deduction from this type of gift, but you will maintain control.
Up to 65% of your retirement plan may be taxed at your death before your beneficiary receives it. To avoid this, you can name the University of Montevallo Foundation as the beneficiary of your retirement plan and use other assets to make gifts to your heirs.
There are two different types of charitable remainder trusts. In both, a donor gives stock, cash or other assets to a trust. These assets are invested, and the trust makes regular distributions to the donor or other beneficiary. The distributions may last either for a fixed period of time or until the donor dies. This is agreed upon when the trust is created. The donor is allowed to claim a tax deduction for the present value of the gift that will ultimately come to the University of Montevallo Foundation. When the trust terminates, the Foundation receives the gift of the remaining assets.
A charitable remainder unitrust is a popular way to achieve tax benefits as well as a fixed annual percentage on the value of assets in the trust. The assets are valued annually, and, if the trust value increases, the payment to the beneficiaries increases.
A charitable remainder annuity trust is set up to pay a fixed rate of return based on the initial valuation at the time the property is placed in the trust. The trust assets are never revalued.
A charitable lead trust is often described as the opposite of a charitable remainder trust. It is a plan that enables you to transfer assets to your heir or heirs, often at a reduced tax basis or cost, and also make a gift to the charity you desire. A charitable lead trust is established by irrevocably transferring assets into the trust.
The University of Montevallo Foundation gladly accepts gifts of tangible personal property that the University would otherwise need to purchase, or that further the endeavors of the University’s educational communities.
While the University is grateful for every donor’s intent to give, most personal property donations must be approved by the Foundation Board.
If you are interested in donating any real estate or items to the University of Montevallo Foundation, please contact University Advancement at 205-665-6215.
The information contained on this web page is not intended as legal or tax advice. Donors should, therefore, consult with their personal advisors for such advice.