No matter their size, estate gifts have an enormous impact on the University of South Florida. Currently, USF can expect to receive over $40 million in distributions from estate gifts. Many of the future successes at the university will be the direct result of these generous donors who remembered the University of South Florida when planning their estate.

The USF Office of Planned Giving encourages you to consult an attorney before pursuing any of the gift plans discussed here.

Bequest in Your Will
Only through an accurately written will can you ensure that your estate will be properly administered and the assets distributed according to your wishes. Including the University of South Florida Foundation in your will allows you the flexibility of having full control of your assets while living.

Although a bequest provides no current tax benefits, they are the most popular form of estate gift because they allow donors the most flexibility during their lifetimes. Gifts made upon the distribution of an estate, called "testamentary" gifts, can reduce or eliminate estate taxes by providing an estate tax charitable deduction.

Name USF as the Beneficiary of a Living Trust
Naming the University of South Florida as the beneficiary of your Living Trust (sometimes called a "Revocable Trust") operates much the same as leaving a bequest in your will. One important exception is that assets you place in a Living Trust during your lifetime will avoid probate costs and delays. This allows your trustee to act quickly to satisfy the pressing needs of your beneficiaries.

Charitable Lead Trusts
A primary reason USF donors create Charitable Lead Trusts is to transfer assets to children or family members at a much lower tax cost than would be the case if they transferred the assets directly. However, one of the most satisfying aspects of Lead Trusts is that donors get to watch their money benefit the university right away.

A Charitable Lead Trust begins when the donor transfers an asset to the trust. Every year of the trust's term (up to 20 years) the trust pays out a fixed percentage of the income it generates to USF. After the trust term is over, the original trust assets, plus growth, are passed on to the beneficiaries (children, family, or even the donor) at a reduced tax cost. When funded with assets that have a high potential for appreciation, the Charitable Lead Trust may often leave heirs with a larger inheritance than possible with other estate planning methods.

Retained Life Estate in Home or Farm
Did you know that you can give your home to USF and continue living there? Through a Retained Life Estate, when you transfer ownership of your home, condominium, vacation home, or farm to the University of South Florida Foundation, you will receive a charitable deduction from your income taxes. Meanwhile, you and your spouse (or even someone else you wish to name) can continue to use the home for life. At the end of the life estate, the home will pass to USF outside of your estate, avoiding estate tax consideration entirely.

Individual Retirement Accounts (IRA's)
Did you know that IRA's are one of the worst assets you can include in your children's inheritance? The double, even triple taxation that make IRAs a terrible asset to transfer to family is the very reason IRA's make a terrific asset to use as a testamentary gift to the University of South Florida.

IRA's were really designed for one purpose-to be spent in full during retirement. Today, many people have more than they need in their IRA; or they aren't taking distributions fast enough. Taxes that were deferred during the owner's working years will be due and payable by the heirs when they receive their inheritance. This tax is called "Income in Respect of a Decedent" tax or (IRD). Needless to say, it can be a most unwelcome surprise to your children and family.

The bottom line for your Individual Retirement Account is that you: 1) spend all the IRA money during retirement, or 2) make a gift of your IRA account to the University of South Florida Foundation through your estate. To make an IRA gift, just fill out the forms provided by your retirement fund manager to change the beneficiary of your account to the University of South Florida Foundation.

Life Insurance Gifts
Sometimes people can have "too much insurance." Perhaps the person you bought the policy to protect is no longer vulnerable to financial loss. Or perhaps a large life insurance settlement would cause your estate to exceed the unified estate tax credit and subject your estate to unnecessary taxes. Whatever the reason, the gift of a paid-up life insurance policy to the University of South Florida can result in a substantial gift from a relatively modest current outlay.

Insurance gifts are made by transferring ownership of the policy to the University of South Florida Foundation, Inc., and also naming the Foundation as beneficiary of the policy. We suggest that you contact the USF Sarasota-Manatee Advancement Office at giving@sar.usf.edu before you assign your policy to the university.

For information or questions on any of the following Estate Gift options please email us at: giving@sar.usf.edu or telephone us at (941) 359-4582.