A bequest can take the form of a percentage of your estate, or a specific dollar amount, and will not require any commitment of assets at the present time. A bequest can be adjusted any time you review your will. Suggested language for naming the Institute for Advanced Study as the beneficiary of an unrestricted bequest follows below; if you wish to restrict your bequest please contact us so that we may advise you on suggested language:
“I give and bequeath to the Institute for Advanced Study—Louis Bamberger and Mrs. Felix Fuld Foundation, a nonprofit corporation located in Princeton, New Jersey, the sum of _____ dollars ($_____) [or the property described below].”
In addition to a clause in your will, a bequest can be made by naming the Institute for Advanced Study as a beneficiary of a retirement assets account or life insurance policy.
Qualified Charitable Distribution From an IRA
It is now possible to make gifts to IAS from an IRA and avoid paying taxes. Recent legislation has allowed qualified charitable distributions of up to $100,000. The statutory requirements for a “qualified charitable distribution” are as follows:
- The distribution must be made from an IRA (other retirement accounts are not eligible).
- The recipient must be an eligible charitable organization.
- The IRA’s owner must be at least 70.5 years of age.
- The distribution must be made directly to the charity by December 31 in the year in which it is intended.
- The distribution must otherwise be fully deductible as a charitable contribution.
- The distribution must otherwise be included in gross income.
Charitable Gift Annuity
A charitable gift annuity requires a minimum, irrevocable gift of $25,000, and pays a fixed dollar amount each year to one or two persons, who are at least age 70, for life. The gift annuity is a contract with the Institute and is secured by an annuity reserve fund and the Institute’s assets. Upon the death of the annuity recipients, the residuum of your gift is added to the Institute’s endowment. At this time, payout rates compare very favorably to other fixed income investments, such as CDs. A charitable income tax deduction may apply for the portion of your original gift that represents the value of the Institute’s interest in the residuum.
Charitable Remainder Trust
With a charitable remainder trust, a donor transfers assets to IAS, who serves as trustee. The Institute then makes quarterly payments, based on a percentage of the trust’s principal, to the donor and/or others for life or for a specific period. When the trust terminates, IAS receives what remains—the “charitable remainder”—of the trust assets. A minimum gift of $100,000 is required to establish a charitable remainer trust at IAS.
A charitable remainder annuity trust, like a charitable gift annuity, provides a fixed income—but the tax treatment of the payments may be better for donors giving highly appreciated assets.
Charitable Lead Trust
A charitable lead trust requires a minimum of $100,000 to be placed in an irrevocable trust, usually for a period of ten to twenty years. The income stream will immediately benefit the Institute for Advanced Study, providing support over the term of the trust, and at the end of the term the remaining assets (and any appreciation) are transferred to a non-charitable beneficiary, often in a younger generation. The current environment makes charitable lead trusts more attractive because the IRS discount rate used to calculate the income interest is low, which enhances the possibility of passing on appreciated property while minimizing gift and estate taxes.
Remainder Interest in Personal Residence
A remainder interest in personal residence is a gift of your home to the Institute for Advanced Study while retaining the right to occupy the property for the remainder of your life (a “life estate”). At your death, your retained life estate ends and the Institute for Advanced Study acquires the full property interest. You are able to make a substantial gift of an appreciating asset to the Institute during your lifetime, receive a tax deduction based upon your life expectancy, reduce the value of your taxable estate, and simplify the settlement of your estate.
Legacy Society Members
Victoria and Hank Bjorklund
Richard B. Black
Addie and Harold Broitman
Joseph E. Brown
Helen and Martin Chooljian
Getzel M. Cohen
John W. Dawson, Jr.
Hedwig C. H. Dekker
Professor William Doyle, FBA
Janet and Arthur Eschenlauer
Carl and Toby Feinberg
Dr. Cloudy (Klaus-Dietrich) Fischer
Dr. Paul Forman
Lor and Michael Gehret
Peter and Helen Goddard
Rachel D. Gray
Betty W. (Tina) Greenberg
Phillip A. Griffiths
Robert M. Guralnick
Ralph E. Hansmann
James F. Hawkins
Rosanna W. Jaffin
George Labalme, Jr.
Dr. Florian Langenscheidt
Walter H. Lippincott
Mr. and Mrs. Robert W. Loughlin
Robert MacPherson and Mark Goresky
Loris and Bruce McKellar
Alexander P. D. Mourelatos
Sherry B. Ortner
Susan E. Ramirez
John H. Rassweiler
Millard M. Riggs
Barbara Heard Roberts
Daniel H. Saracino
Richard Donald Schafer
N. J. Slabbert
Chuu-Lian Terng and Richard S. Palais
Franklin K. Toker
Marilyn and Scott Tremaine
Professor and Mrs. V. S. Varadarajan
Professor C. Franciscus Verellen and Mrs. Isabelle M. Verellen
Morton G. White
Brian F. Wruble
Contact Mary Boyajian at (609) 734-8239 or firstname.lastname@example.org