BEQUEST

Sample Bequest Language

The provisions in your Will for making a gift to the University of Illinois Foundation will depend upon the type of gift and your unique circumstances. For planning purposes, it is generally advantageous to express the bequest as a percentage of your estate, rather than as a dollar amount. Of course, a specific asset or a dollar amount can be substituted in these examples, if more appropriate. We hope these sample provisions will be helpful to you and your attorney.

See language for unrestricted gifts, a gift for a specific purpose, gift of residuary estate and contingent gift of residuary estate.

Also, you can read about the deductibility of gifts or return to the types of gifts page.

Unrestricted Gifts

"I bequeath to the University of Illinois Foundation, a not-for-profit corporation located in Urbana, Illinois, ____ percent of my estate for its general purposes."

Gifts for Specific Purposes

"I bequeath to the University of Illinois Foundation, a not-for-profit corporation located in Urbana, Illinois, ____ percent of my estate to be used for ________________."

When the Donor wishes to delineate the specific use to which the charitable bequest should be put, a separate fund agreement outlining the Donor's wishes can be executed and signed by an officer of the Foundation. This agreement can be referenced as follows:

"I bequeath to the University of Illinois Foundation, a not-for-profit corporation located in Urbana, Illinois, ____ percent of my estate to be used for the purposes as set forth in the Fund Agreement as executed by me and the University of Illinois Foundation and which is incorporated herein by reference."

Gift of Residuary Estate

"I give, devise and bequeath the residue of the property owned by me at my death, real and personal, of whatever nature and wherever situated, to the University of Illinois Foundation, a not-for-profit corporation located in Urbana, Illinois, for its general purposes."

Contingent Gift of Residuary Estate

"I give, devise and bequeath the residue of the property owned by me at death, real and personal, of whatever nature and wherever situated, to my wife, ______, if she survives me. If my wife does not survive me, I devise and bequeath my residuary estate to the University of Illinois Foundation, a not-for-profit corporation located in Urbana, Illinois, for its general purposes."

Deductibility of Gifts

All bequests to the University of Illinois Foundation are deductible for purposes of federal gift and estate tax. In most cases, to further minimize taxes, bequests to the Foundation should also contain the following language:

"I instruct that all of my charitable gifts be made, to the extent possible, from property that constitutes "income in respect of a decedent" as that term is defined in the Internal Revenue Code."

"Income in respect of a decedent" includes assets held in an IRA, Keogh, 401(k), or other qualified plan. These assets are subject to income tax when left to heirs other than a spouse, even in cases where no estate tax may be due. The above language allows the estate to claim an offsetting charitable income tax deduction, making the charitable bequest even more cost effective.

For further assistance, please contact: Office of Trust Relations and Planned Giving University of Illinois Foundation Harker Hall, MC- 386 1305 West Green Street Urbana, Illinois 61801 Phone: (217) 333-6346

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