A bequest is a gift to Rhodes made at death through the donor’s will. Bequests are the most common type of planned gift, and the easiest to make. They cost the donor nothing during life, provide flexibility to make changes at any time, and allow the donor to maintain control of the assets. Rhodes welcomes bequests of any size, making them a type of gift that anyone can afford. Unrestricted bequests allow the college to use the funds wherever they are most needed at the time. Restricted bequests can be used for a specific purpose chosen by the donor.
Retirement Plan Designation
Naming Rhodes as a beneficiary of an IRA, 401(k), 403(b), Keogh, or other qualified retirement plan is often one of the most attractive gifts for donors. Like a bequest, a gift through a retirement plan designation is easy to make or change and allows the donor to maintain control of the assets during life. In addition, retirement plans are often subject to significant income tax when they are distributed to heirs. In the largest estates, the combination of estate and income taxes can dissipate a large portion of a donor’s retirement plan. In many cases, making charitable bequests from a retirement plan and leaving non-retirement assets to heirs maximizes both the gift to Rhodes and the assets available for heirs.
Gifts of life insurance policies can allow donors to make larger gifts to Rhodes than they would otherwise be able to make and often entitle the donor to an income tax deduction. Depending on the circumstances and the donor’s wishes, Rhodes may surrender a policy with significant cash value and use the resulting funds in a way that allows the donor to see the gift at work. Donors who make annual donations to Rhodes to fund the premium also enjoy income tax deductions for those gifts.
For more information about planned giving, contact Nicki Soule ′93, Director of Golden Lynx Programs, at (901) 843-3740 or firstname.lastname@example.org.