A gift in your will

How to meet your charitable goals

Why make a gift in your will?

A popular way of providing long-term support for a meaningful charitable organization is to make a gift in a will. There are several reasons individuals might choose this gift option:

  • To make a statement about personal values.
  • To support an important cause and benefit future generations.
  • To honor a loved one or provide a gift that inspires others to give.

Tax planning can also be an important factor in this decision. With some foresight, you can make a gift in your will that fulfills specific planning goals as an integral part of an estate plan.

The benefits of planning a gift in your will

If you are thinking of making a gift in your will, keep the potential benefits in mind. Your gift can:

  • Serve as a source of personal satisfaction.
  • Help accomplish important personal goals as an integral part of your estate plan.
  • Provide tax and financial rewards for family or other beneficiaries.

Flexible planning

There are many ways to make a gift in your will:

  • It can be outright or deferred.
  • It can be absolute or contingent upon certain events.
  • It can honor a beloved family member or cherished friend.
  • It can provide general support to a charity, or it can be restricted to a specific purpose.

When you make a gift in your will, you retain full use of your assets during life, ensuring no immediate out-of-pocket cost, reduction in net worth, or disruption of cash flow. You also maintain complete control of the process, allowing you to change your gift later if circumstances change. Of course, you should rely on your attorney to draft your will. If you decide to support Indiana University through your will, please use the institution’s legal 501(c)(3) name: Indiana University Foundation.

An outright or deferred gift

It is common to think of a gift in a will as an outright gift—a direction to distribute a specific asset or a certain sum of money to a designated charitable beneficiary. But it is also possible to make a deferred gift, with individual beneficiaries receiving immediate benefits and Indiana University receiving benefits at some later time.

To make an outright gift in your will, simply specify:

  • A dollar amount (say, $10,000) or an asset (such as 100 shares of stock).
  • A percentage of the value of your estate (this allows the charity to share in the increase or decrease of the estate value, which can change quickly and dramatically).
  • What’s left in your estate after all costs, debts, and taxes have been paid and all bequests have been satisfied (appropriate when you want other bequests to have priority).

Your personal objectives should determine the exact form of your gift. Be sure to consult your attorney for advice and assistance. The IU Foundation gift planning team is also available to provide guidance.

A deferred gift via a gift annuity or trust can add a great deal of flexibility to your estate plan by creating an income stream. It allows you to provide for one or more family members or other beneficiaries first, and then provide a gift to Indiana University later. A deferred gift can take many forms, but generally it will pay an annual income to one or more beneficiaries for life (or for a period of years), then pass the property to IU when the income payments end.

Planning a personally satisfying gift

There are many ways to make a gift in your will that helps you accomplish your planning and philanthropic goals. We sincerely hope that you will include Indiana University in your plans. If you do choose to support the university’s work in your will, please let the IU Foundation know. We can answer any questions and help you plan your gift in a way that is both effective and personally satisfying. Knowing about your generous support will also help IU plan for the future.

All examples are for illustrative purposes. Contact us for current rates and tax information.