Gifts from your Retirement Funds

You can use funds from your Individual Retirement Account (IRA), Keogh plan, qualified pension or profit-sharing plan to leave a meaningful gift to Wayne State University after your lifetime. The generous tax savings from this carefully planned gift may enhance your overall estate plan and benefit your heirs.

Retirement fund assets are heavily taxed if given to an individual; however, you may designate Wayne State University as a beneficiary of a specific amount, a percentage or the remainder of your retirement assets. Gifts from your retirement fund to Wayne State University are exempt from estate tax.

To name Wayne State as beneficiary of your IRA, 403(b) or other retirement assets, request a beneficiary designation form from your plan administrator, complete it designating Wayne State University as a beneficiary (please contact the Planned Gifts Office for the university’s tax identification number), and return it to the administrator. For IRAs and Keogh plans that you self-administer, notify the custodian in writing. Below is language you may use for your notification. In either case, be sure to keep a copy for your records, and please send a copy to us at the address below.

If you wish to designate a particular area of the university to receive your future gift, you should specify that area on the designation form. For example:

“Wayne State University, for the benefit of (school, college, program, department or scholarships).”

If you are married, you may name your spouse as primary beneficiary of retirement accounts, and name Wayne State as secondary beneficiary. To name Wayne State as the sole beneficiary of qualified retirement plan assets, check with your plan administrator to determine if your spouse is required to sign a waiver.

You also may use retirement fund assets, such as your IRA, to fund a charitable remainder trust in your will. This will provide lifetime income to a loved one, an eventual gift to the university, and your estate will benefit from a generous charitable deduction.

By establishing a planned gift such as naming Wayne State University a beneficiary of your retirement plans, you will be invited to join The Old Main Society, an organization created to recognize alumni and others who name Wayne State University in their estate plans. A future gift of $10,000 or more also qualifies you for recognition in the university’s prestigious Anthony Wayne Society. However, if you prefer to remain anonymous, we will keep your name and gift in strict confidence.

SAMPLE NOTIFICATION TO YOUR CUSTODIAN FOR SELF-ADMINISTERED IRAs AND KEOGH PLANS.

To notify your plan administrator that you wish to name Wayne State University as remainder beneficiary of your retirement fund, we suggest the following:

“Ladies/Gentlemen:

Please be advised that the remainder of the assets in my plan after my lifetime is to be transferred to Wayne State University, a Michigan Constitutional Corporation, Detroit, Michigan, to be used for the benefit of Wayne State University in such a manner as the Board of Governors thereof may direct.”

To designate your provision for a particular College, School, Department or area:

“Please be advised that the remainder of the assets in my plan after my lifetime is to be transferred to Wayne State University, a Michigan Constitutional Corporation, Detroit, Michigan, to by used by Wayne State University for the benefit of the (College, School, Department, area of) ____________________________________at Wayne State University.”

If you choose to restrict your bequest provision for the establishment of a specific fund, add the following:

“for an endowment to be known as the (name of your fund).”

You are welcome to establish an endowment for a scholarship, lectureship, research fund, fellowship, professorship or chair. Please discuss your intentions with us to determine amounts needed for each of these naming opportunities, and encourage your advisor to discuss your provision with us. We would be pleased to draft an agreement establishing your future endowment both for your records and to place on file here.

 

 

 

 

 

Please consult with your professional advisors to ensure that your plans are optimum for you and that you have adequate substantiation of your charitable contributions.