Retirement Account Assets
BEQUESTS & BENEFICIARY DESIGNATIONS
If you would like to support the Darden School of Business but are not comfortable giving away assets that you might need now or in retirement, consider naming Darden as a beneficiary of your will, living trust, retirement account, or life insurance policy. Because bequests and beneficiary designations are not binding, you will be able to modify your gift if your circumstances change. The amounts you leave to Darden will pass free of estate tax and, in the case of retirement assets, income tax.
Bequests and beneficiary designations provide a wonderful way for alumni and friends of all ages and circumstances to provide support to future Darden students, faculty, and programs—often at a level much greater than imagined. You can specify the gift purpose—unrestricted support that meets greatest needs or another purpose you select (financial aid or faculty support, for example). If you want to restrict your gift to support a particular purpose, please contact the Darden School Foundation so that we can review your proposed use and confirm Darden can carry out your wishes as you intend.
You can include a provision in your will or living trust by which you give Darden a specific amount or asset, or a percentage of your residuary estate.
Retirement plan assets often are the most highly taxed assets in an individual’s estate because any plan that was funded with pre-tax dollars will be subject to income tax in the hands of any individual beneficiary who inherits the account. As part of a very large estate, a plan may also be subject to estate tax.
You can eliminate income and estate taxes on any retirement plan assets you give to charity. Darden will receive the assets free of tax, allowing the full value of your gift to be used for the charitable purposes you choose.
A life insurance policy provides a relatively inexpensive way to provide continued financial support for loved ones, but when a policy is no longer needed in whole or in part to accomplish its original purpose, the policy can provide a wonderful asset to fund a charitable gift, often in an amount much greater than the total premiums paid.
You can designate Darden as a beneficiary of your bank or brokerage account by using a pay-on-death (POD) or transfer-on-death (TOD) designation.
How to make a bequest or beneficiary designation
To make a bequest, your attorney can insert a simple provision in your will or trust. The Darden School Foundation can provide sample language.
To make a beneficiary designation, you can complete a simple beneficiary designation form provided by your retirement plan administrator, life insurance company, or financial institution.
The Cornerstone Society recognizes those who are honoring the University’s future through planned gifts, including bequests, beneficiary designations, charitable gift annuities, and charitable trusts.
The University of Virginia Darden School Foundation does not provide legal or tax advice. We recommend that you seek your own legal and tax advice in connection with gift and planning matters. To ensure compliance with specific IRS requirements, we disclose to you that this communication (including any attachments) is not intended or written to be used and cannot be used for the purpose of avoiding tax-related penalties.