Bequests and Planned Giving
Bequests, both large and small, have helped shape Magdalene for centuries. By means of your Will or other estate plan, you can name The Magdalene College Foundation as the beneficiary of a portion of your estate or of particular assets in your estate.
Giving by bequest costs nothing now, yet it is often the easiest way to make a significant gift that lives on and provides a lasting benefit.
Many forms of planned giving can offer significant tax benefits, substantially reducing capital gains and estate taxes and/or providing immediate income to you or a beneficiary.
A Variety of Alternatives
There are several types of bequests and methods of planned giving, including the following:
- Cash Bequest - a specific dollar amount from your estate
- Bequest of Property - a gift of specific assets, such as securities, real estate, or tangible personal property (for example, works of art or antiques)
- Residuary Bequest - a gift of all or a percentage of the remainder of your estate after the payment of any specific bequests and expenses
- Contingent Bequest - a gift that takes effect only if other beneficiaries predecease you
- Retirement Plan - you can designate The Magdalene College Foundation as a beneficiary of the remainder of your IRA or qualified pension or profit-sharing plan
- Testamentary Trust - provides one or more heirs with income for life or a term of years, after which assets pass to The Magdalene College Foundation
- Lead Trust - a trust established through a bequest under which The Magdalene College Foundation receives income for a term of years, after which the assets pass to your beneficiaries, often at a much-reduced tax cost
- Charitable Remainder Trust - provides a potential immediate tax deduction and an income stream for you or your beneficiaries, with the remainder of the donated assets eventually going to The Magdalene College Foundation
- Life Insurance - The Magdalene College Foundation can receive or be named as the beneficiary of all or part of a new or existing life insurance policy. Depending upon the type of policy donated, you may receive an immediate tax deduction, and any future premium payments may also be tax deductible
IRA Charitable Rollover
The IRA Charitable Rollover provides an excellent opportunity to make a gift during your lifetime from an asset that could be subject to multiple levels of taxation if it remained in your taxable estate.
- You must be aged 70½ or older at the time of gift.
- Transfers must be made directly from a traditional IRA account by your IRA administrator to The Magdalene College Foundation (funds that are withdrawn by you and then contributed do NOT qualify).
- Note that gifts from 401k, 403b, SEP, and other plans do not qualify.
Benefits of qualified charitable distributions
- Can total up to $100,000 per year.
- Are not included in your federal gross income on IRS Form 1040; however, no charitable deduction is available. State tax treatment varies widely.
- Count towards your required minimum distribution for the year from your IRA.
Is the IRA Charitable Rollover right for me?
It may be right for you if you are at least 70½ years old and:
- you do not need the additional income necessitated by your minimum required distribution, OR
- your charitable gifts already equal 50% of your adjusted gross income, so you do not benefit from an income tax charitable deduction for additional gifts, OR
- you do not itemize deductions, OR
- you are subject to income phase-outs on your income tax deductions
If you have any further questions or would like to find out more then please contact the Director of Development or call +44(0)1223 332104. We are grateful for your interest and support.
Benefits of a Bequest
An outright gift to the Magdalene College Foundation from your estate - whatever the amount and whether it is expendable or for endowment - is entirely free from US federal estate taxes. This means the full amount of the bequest is available, whereas if it were left to an individual, a significant amount might go to federal estate taxes. Also, bequests generally are not subject to state inheritance or estate taxes.
How to Make a Bequest
The following is simple language for a bequest to the Magdalene College Foundation:
“I bequeath to The Magdalene College Foundation, a 501(c)(3) non-profit corporation organized and existing under the laws of Delaware, with the business address of 324 Grove Street, Worcester, MA 01605, the sum of ________ [dollars or percentage of estate], to be used exclusively for its charitable purposes. It is my hope and desire that these funds be utilized for the support of Magdalene College in the University of Cambridge for [its general purposes] or [for the benefit of <specific area(s) of support>).”
The Buckingham Society
Those who support the Foundation through bequests and planned giving are invited to join the Buckingham Society, named in honour of the first founding of the College as Buckingham College in 1428. Members of the Buckingham Society are recognized for their intended gift to the Foundation and are invited to an annual luncheon at Magdalene College in early June.
For assistance in drafting bequest provisions, transferring gifts from trusts and estates to the Magdalene College Foundation, or considering planned giving alternatives, please contact the Alumni & Development Office at firstname.lastname@example.org or +44 1223 332104.
Tax and estate planning can be complex. The above does not constitute tax or legal advice, and donors are urged to seek qualified, independent advice as to which planned gift program best meets their financial and philanthropic goals.