Rhode Island College's planned giving program is conducted in a confidential manner to assist alumni and friends of the College who want to make gifts of cash, securities, insurance, real estate, or by bequest, life income or a retirement plan. A variety of planned giving instruments provide donors with income for life while delivering significant tax advantages, too. Planned gifts are typically made in support of specific purposes, especially in the area of student and faculty support. They are also used to establish endowments for contributions in perpetuity.
Your Will and Charitable Bequests
A will should always be drawn with the advice of an attorney. This site is intended only to provide general information for those who may wish to make a gift for the benefit of Rhode Island College through their will.
Charitable bequests may be made through the vehicle of a will. Bequests may consist of specific property, real or personal, as well as money. Real property is land and anything that is attached to it. Personal property includes securities, insurance policies, books, antiques, and jewelry. If securities are given, appropriate wording should be used in the will to ensure that liquidation will not reduce the value of the gift you intend. The Rhode Island College Foundation welcomes gifts of real estate, wherever they are located, as long as the Foundation is not required to keep the property.
Gifts by will for Rhode Island College should be made to the Rhode Island College Foundation, which has a charter for this purpose under state law. The Rhode Island College Foundation is a tax-exempt corporation under Subsection 501(c)3 of the Internal Revenue Service code and is exempt from all state and local taxes. All gifts to the Foundation are approved deductions according to the schedules established under income tax regulations.
Giving Through Your Retirement Plan
Due to the outstanding tax benefits granted to those who use IRAs, 401(k)s, 403(b)s, and other "qualified pension plans," these instruments have become very popular. Here, for the purposes of convenience, we will refer to all these plans as IRAs. Roth IRA funds avoid income tax and grow tax-free. All other IRAs grow tax deferred with income taxes due only when withdrawals begin.
When passed to a named beneficiary (person, trust, or institution), the IRA does not go through probate. As an example, if a spouse is named as beneficiary in the IRA, he or she can create a "spousal rollover IRA" and have the funds transferred at death to the rollover IRA without paying any tax. The income will be taxable when he or she takes income. The death taxes can be substantial when the second spouse dies.
How can you include your IRA as part of your estate plan?