Gifts in your Estate Plans
Gifts made from donors’ estates have made a Vanderbilt education possible for students who otherwise could not have attended this great university. They have recruited the most talented faculty members, established programs, funded research and amazing discoveries and built buildings. Day by day, more and more donors add Vanderbilt to their estate plans. Will you consider joining those who secure Vanderbilt’s work into the next generations?
Why is a bequest an appealing way to make a charitable gift?
- During your lifetime, you have access to the money or property in case you need it.
- You can designate your bequest for the program, school or project at Vanderbilt that you care about—just as you would with an outright current gift.
- By properly allocating different asset classes between your charitable and individual beneficiaries, you can make sure the value of your estate is preserved to the fullest extent.
Generally, there are two main ways to include Vanderbilt in your estate plans:
1) Provision in a will or revocable trust. While meeting with your estate planning attorney and other advisers, tell them you want to include a provision for Vanderbilt and your other charities. A will or revocable trust will not take effect until death and you are free to change or revoke any language in the document as you choose during your lifetime.
We encourage you to contact us during your planning process. We can help you and your advisers craft the language that will establish your personal or family legacy.
2) Naming Vanderbilt as a beneficiary of your IRA or other retirement plan. Many people hold significant assets in tax-deferred IRAs or 401(k) plans. These arrangements can require a more strategic approach than cash, stocks or real estate. You can include charities as beneficiaries of these plans and your heirs will be glad you did!
How to Name Vanderbilt as beneficiary of your IRA, 401(k) or 403(b) plan -
If you plan to leave money and property to your surviving family members and to your favorite charities, the wisest plan is to leave income-taxable assets like IRAs and 401(k) plans to the charitable beneficiary and non-taxable items such as cash, investment portfolios or real property to the individual beneficiaries.
When you contributed to your retirement plan, no tax was paid on those contributions. Whenever the money is withdrawn — either by you during your lifetime or by your heirs after your death – the income tax becomes due. Naturally, the charitable beneficiary is income tax-exempt, so IRA and 401(k) funds left to a charity are not subject to the income tax. In contrast, a child inheriting $100,000 from an IRA must pay income tax on that amount and is only able to spend the net amount after taxes – around $72,000 if the child is in the 28 percent tax bracket.
1. Contact your IRA or retirement plan administrator (TIAA-CREF, Fidelity Investments, Vanguard Group, Charles Schwab, for example). Ask for a beneficiary designation form. (You can find this form on the administrator's website.)
- Print it, complete it and mail it to the administrator.
- Or, complete it online, and click on “submit”!
- Or, call the administrator or your representative on their 800 toll-free line and ask them to mail you the form.
2. What will you say? “80% to Mary Jones, my daughter; and 20% to Vanderbilt University” or any combination you choose.
3. Your IRA administrator will ask for Vanderbilt’s address and taxpayer identification number (“TIN”), also known as an employer identification number (“EIN”) – this is Vanderbilt’s social security number.
Office of Planned Giving
2301 Vanderbilt Place
Nashville, TN 37240-7756
Ph: (615) 343-3113
Tax ID number : 62-0476822
4. Don’t forget to tell us about your gift! We would be honored to enroll you in the Sarratt Society and would like to discuss how you would like your gift to benefit Vanderbilt’s faculty, students and programs.