Giving to the Center

Estate Planning

If you dream of changing the world ó for one horse or for many ó a deferred gift to the Marion duPont Scott Equine Medical Center can allow you to help shape the future of the center, its services, and its people to a greater degree than may otherwise be possible.

A deferred gift is a contribution that will come to the Equine Medical Center at some time in the future. Donors at every level can accomplish remarkable things through a variety of deferred gift plans strategically tailored to fit individual circumstances, gift size, and charitable goals.

These gifts enable the center to reach for an unprecedented standard of excellence. Because of their flexibility, deferred gifts have a very strong appeal to many friends. Some deferred gifts, such as charitable trusts, gift annuities, and pooled income fund gifts include the benefit of lifetime income and current tax benefits. Other deferred gifts such as bequests or retirement plan gifts will not include lifetime income but will reduce estate taxes.

When you include the Equine Medical Center in your estate plans, you have the satisfaction of creating a meaningful legacy and you help to assure a bright future that will realize the great promise of this exceptional facility.

You can express your personal vision with a gift supporting the center in a way that is meaningful to you. For example, you might consider a gift for a professorship that stimulates learning, or a fellowship that creates research and educational opportunities for graduate students, or a program that helps invent the future of equine health care. You may decide to make a gift that will be used entirely when received, or to endow permanent support. You can make an unrestricted gift that will sustain the centerís highest priorities or you can designate support for specific areas or initiatives within the hospital.

Our goal is to help you discover the most effective way to meet your philanthropic and financial goals while creating a meaningful legacy with a gift to the Marion duPont Scott Equine Medical Center. Regardless of which method of giving is most appealing to you, please know that your provision is deeply appreciated and will make a difference in the lives of horses, faculty, and students for generations to come.

Gifts through your estate:
Bequest
Retirement Assets
Life Insurance

Other:
Charitable Lead Trusts

 

Tax Benefits

Gifts made during your lifetime typically qualify for an income tax deduction equal to the giftís full fair market value. Capital gains taxes can be avoided and estate tax liability reduced. Although revocable gifts, such as bequests in a personís will, do not qualify for income tax benefits, they reduce possible estate taxes. While any income tax deduction is generally based on a giftís full fair market value, tax benefits are reduced in certain gift situations. These include life income gifts, gifts of non-cash assets held less than one year, gifts of certain types of tangible personal property, and gifts in which you receive benefits in return (e.g., athletic seating privileges). Even though your deduction may not be as great in these situations, the available tax benefits still significantly reduce the cost of your gift. The size of your gift may affect how much of the tax deduction you might use in one year and how much is carried forward to future years.

NOTE: While the development office at Virginia Tech can provide illustrations and general information, they cannot give specific legal, tax, or other professional advice. You are encouraged to consult with your attorney or other advisor to ensure consistency with your overall estate plan. You are encouraged, also, to notify the Equine Medical Center Development office when you make plans for a deferred gift that will one day benefit the Equine Medical Center. Knowing about your gift provision allows the university to thank you now and to better plan for the future use of your gift.

Gifts Through Your Estate

Bequest

A bequest is your statement of affirmation that the Equine Medical Center is to continue into the future, expanding its frontiers of scientific innovation and clinical implementation. For many friends, a charitable will bequest is the ideal way to support the centerís mission. Itís simple, itís flexible, itís effective, and it allows almost anyone to leave a lasting legacy.

You can provide now for a future gift to the center by including a bequest provision in your will. Making a bequest to the Equine Medical Center allows you to accomplish your philanthropic goals while you still enjoy the lifetime use of your assets. You can adjust your will if you encounter unexpected needs, and tax savings may be found to benefit your estate. We will use the gift for the purpose you specify. Please check with us to make sure that we can use your gift for the purpose you intend.

How it works: Simply name the Virginia Tech Foundation and the Marion duPont Scott Equine Medical Center in your will or trust as the recipient of a specific asset, dollar amount, or percentage of your estate. You retain lifetime use of your assets and have the flexibility to make adjustments.

If you wish to create an endowment, we can work with you to create an Endowed Fund Agreement so that your gift is used exactly the way you wish.

Sample Bequest Language

Following is some sample language for different outright estate gifts. (These are examples only and should be used only with the advice and assistance of your attorney.)

Specific Bequest: Gift of Specific Dollar Amount or Asset
"I give, devise, and bequeath _________ (cash, securities, real estate, artwork, etc.) to the Virginia Tech Foundation, Inc., Blacksburg, Virginia, on behalf of the Virginia Polytechnic Institute and State University. This bequest shall be used for ________ at the Marion duPont Scott Equine Medical Center, located in Leesburg, Virginia."

Percentage Bequest: Gift of a Percentage of Your Estate
"I give, devise, and bequeath _______ percent (____%) of my estate (or other personal or real property appropriately described) to the Virginia Tech Foundation, Inc., Blacksburg, Virginia, on behalf of the Virginia Polytechnic Institute and State University. This bequest shall be used for _______ at the Marion duPont Scott Equine Medical Center, located in Leesburg, Virginia."

Contingent Bequest: Gift Contingent Upon Another Occurrence, Such as an Heir Not Surviving You
"In the event my (spouse, daughter, son, friend - full name) shall predecease me, I leave their share to the Virginia Tech Foundation, Inc., Blacksburg, Virginia, on behalf of Virginia Polytechnic Institute and State University. This share shall be used for _______ at the Marion duPont Scott Equine Medical Center, located in Leesburg, Virginia."

Residual Bequest: Gift of Everything After All Other Bequests and Expenses Have been Paid
"After my specific bequests have been fulfilled, I give, devise, bequeath and appoint all the rest and residue of my estate, wheresoever situated and of whatever nature, to the Virginia Tech Foundation, Inc., Blacksburg, Virginia, on behalf of the Virginia Polytechnic Institute and State University. This bequest shall be used for _______ at the Marion duPont Scott Equine Medical Center, located in Leesburg, Virginia."

Retirement Assets

Assets accumulated in tax deferred retirement accounts such as IRAs, 401(k)s, 403(b)s, and SEPs, can fund deferred gifts.

Since retirement accounts are subject to income taxes, in addition to possible estate taxes, they are less valuable to heirs than to charities, which pay no income or estate taxes. Using these assets for deferred charitable gifts means that your heirs inherit more valuable and tax-favored assets. Consequently, you increase support for heirs and for the Equine Medical Center. Making such a gift is easy to do.

How it works: Simply obtain a beneficiary designation form from the company managing your retirement account and name the Virginia Tech Foundation and the Marion duPont Scott Equine Medical Center as beneficiaries of your IRA, 401(k) or other qualified plan. This form Ė not your will document Ė governs retirement account distributions. Arranging for such a gift will have no effect on your assets during your lifetime, and you can change your designation if you wish.

Life Insurance

A life insurance policy can be valuable for funding charitable projects, and there are various ways to make such a gift. Many individuals donate paid-up life insurance policies that are no longer needed for their original purpose. These policies can be cashed in to benefit the university immediately, establish an endowed fund, or be put toward a capital building project or other pressing need. Some benefactors find that this is the least expensive means of establishing a lasting legacy, and they create a new policy with a specific purpose in mind for the Equine Medical Center.

A current policy (on which premiums are being paid) can be donated as well. For you to receive income tax benefits, the Virginia Tech Foundation needs to be the stated owner and beneficiary of the policy. Premiums paid on such a policy are also tax deductible.

If you wish to retain ownership of your policy, you can designate the Virginia Tech Foundation as a beneficiary. While there is no immediate tax benefit, you have the opportunity of making a future gift to benefit the university as desired.

Gifts that Provide Income

Life Income Gifts

Virginia Tech offers three kinds of life income gifts: charitable gift annuities, charitable remainder trusts, and a pooled income fund. In each of these plans the following happens:

  • Assets are transferred to the Virginia Tech Foundation, Inc.
  • During your lifetime, you receive a predefined income stream. If desired, income can continue during a spouse's lifetime. Other individuals may be named as beneficiaries.
  • When the plan ends, the university uses the gift remainder as you have specified.

While there are various gift plans, there are basically two choices for how and when you receive payments:

  • Fixed or Variable Payments: Payments may be a fixed dollar amount (often preferred by those wishing to use the payment for a fixed expense such as a mortgage) or a variable dollar amount (often used by those wishing to provide a hedge against inflation). Variable amounts are a stated percentage of the annual value of the account or the income (interest, dividends, and rent) earned by the gift.
  • Immediate or Deferred Income: Payments may begin immediately or you may choose to defer them, receiving either minimal or no payments until a specified future time. The future date could be a retirement date or until the sale of a liquid asset that will fund the gift.

Charitable Gift Annuities

  • A charitable gift annuity is a contract between you and the Virginia Tech Foundation that provides you and/or other designees an income stream for life. Payments are backed by the Foundation's assets.
  • The income stream can begin as soon as the gift is completed. However, if you don't currently need the income, or if you want a larger income tax deduction, you may elect to defer the income until a future date. At the end of the designated lifetimes, the remainder will be used by the university according to your wishes.
  • Because the payments are fixed, charitable gift annuities are appropriate for donors who want to make a significant gift to Virginia Tech but are concerned with maintaining a life income stream that they can count on. They can be funded with gifts beginning at $25,000.

Charitable Remainder Trusts

  • In a charitable remainder trust (CRT), you make an irrevocable transfer to a certain kind of trust. In exchange, the trust will pay you and/or other designees (beneficiaries) an income stream for life or for a period not to exceed twenty years. At the end of the trust, the remainder will be used by the university according to your wishes.
  • Payments from CRTs can be made to you in several ways. Annuity trusts pay fixed amounts and are appropriate for those planning to use payments for specific obligations. Unitrusts pay a stated percentage of the trustís annual value, which will vary. This option is appropriate for those looking for the chance for payments to grow over time.

Pooled Income Fund

  • The Virginia Tech Foundation Pooled Income Fund can be viewed as a community charitable remainder trust. Instead of establishing their own separate trusts, pooled income fund donors give to a common trust that pays them their share of the interest and dividends earned by the trust for the rest of their lives.
  • These payments can continue for the life of a spouse or other loved one. At the end of the gift, the portion of the pooled income fund attributable to the donor's contribution is then used to support the university in the manner specified by the donor.

Charitable Lead Trusts

A lead trust is useful for those who want to pass assets to loved ones with the least possible estate tax while still supporting Virginia Tech.

This type of trust works in the opposite manner from a charitable remainder trust. Appreciating assets are transferred to a lead trust for a selected term of years and with a selected payout rate. Virginia Tech receives the specified income for those particular years. The remaining assets are passed to the specified heirs. If the term of years is long enough and the rate of payout high enough, it is possible to pass assets to heirs free of estate taxes. All appreciation that takes place in the trust is transferred tax-free to your heirs. Other planning options are possible, such as having the assets revert to the donor, with different tax consequences.

Tax Benefits

Gifts made during your lifetime typically qualify for an income tax deduction equal to the giftís full fair market value. Capital gains taxes can be avoided and estate tax liability reduced. Although revocable gifts, such as bequests in a personís will, do not qualify for income tax benefits, they reduce possible estate taxes. While any income tax deduction is generally based on a giftís full fair market value, tax benefits are reduced in certain gift situations. These include life income gifts, gifts of non-cash assets held less than one year, gifts of certain types of tangible personal property, and gifts in which you receive benefits in return (e.g., athletic seating privileges). Even though your deduction may not be as great in these situations, the available tax benefits still significantly reduce the cost of your gift. The size of your gift may affect how much of the tax deduction you might use in one year and how much is carried forward to future years.