Bequest in a Will or Trust
A bequest – a gift through your will or living trust – is the most common method of deferred charitable giving.  Through a bequest, you can direct specific assets, your entire estate or a percentage of your estate to UAA.  A specific bequest is the most basic type of bequest – it simply designates a fixed-dollar amount or specific property to a beneficiary.  A residuary bequest designates that all or a certain percentage of your estate go to a beneficiary.  Finally, you might also choose to make a contingent bequest – a bequest that is only carried out under certain circumstances.  For example, if all other beneficiaries are deceased, the university is a contingent beneficiary.

It is important to work with an attorney to draft or amend your will because it is a legal document.  We are available to work with you and your attorney to ensure your gift is directed to the purposes most important to you.

Suggested Language for a Bequest to UAA in a Will or Trust
I hereby give to the University of Alaska Anchorage, a tax-exempt organization described under Subsection 501(c)(3) of the Internal Revenue Code, located in Anchorage, Alaska, the sum of
$____________________________________________________.

OR all my interests in the following described property:
_____________________________________________________.

OR ___________ percent or all of the residue of my estate, to be used for the benefit of the University of Alaska Anchorage.

OR to be used for the benefit of
(university branch, college, department and/or program)
at the University of Alaska Anchorage.

OR to be used for the benefit of
(i.e. student financial aid, research, faculty development, other purpose)
at the University of Alaska Anchorage.

Life Income Gifts
Life income gifts enable you to receive income while making a lasting gift to UAA.  To put it simply, you make an irrevocable gift of cash, securities or real estate, and we pay you in return.  After your lifetime or the lifetime(s) of other designated beneficiaries, the university uses the remaining balance of assets for the purpose you designate.  A variety of life income gift options are available to help you meet your personal financial goals as well as your philanthropic goals, and university development staff is happy to discuss these options with you.  It is important, however, to seek the professional advice of your attorney or financial advisor as you choose which options are best for you.

Charitable Remainder Unitrust
To create a charitable reminder unitrust, you place assets into an irrevocable trust and name a trustee (for example, the University of Alaska Anchorage or a bank trust department).  The trustee invests the assets (which can grow tax-free) and pays an amount for life or for a set term of years to yourself or to the beneficiaries you select.  When the last beneficiary dies or the trust’s term ends, the trust dissolves and the remaining assets (the charitable remainder) are given to the University to be used for the purpose you designate.

The main feature of the charitable remainder unitrust is a variable income.  You receive a lifetime or term income that is a percentage (by law, a minimum of 5 percent) of your trust’s assets valued annually.  Income payments increase or decrease with the changing value of the trust.  The unitrust thereby provides a potential hedge against inflation as income payments may rise over time.  In addition, the unitrust can be structured to defer income and maximize growth (for retirement planning, for example) or to handle specific types of assets.

Charitable Remainder Annuity Trust
A charitable remainder annuity trust provides a fixed income.  Your lifetime or term income is a fixed annuity, based on a percentage of the initial value of your assets.  By law, the annuity amount must be at least 5 percent.  An annuity trust is most often used when your primary goal is a fixed income and long-term inflation is not a concern.

Charitable Gift Annuity
A charitable gift annuity is a simple contract between you and the University of Alaska Anchorage.  In exchange for your irrevocable gift of cash or securities, the University of Alaska Foundation contractually agrees to pay a fixed sum each year for life to the one or two annuitants named by you.  The assets of the UA Foundation guarantee the sum.  The older your designated annuitants at the time of the gift, the greater the fixed income the UA Foundation can agree to pay, and the greater the tax benefit.  A deferred gift annuity allows for the annual payments to be deferred until a set time in the future.

Designation as Beneficiary of Qualified Retirement Plan
You may consider designating the university to receive any remaining assets of your IRA, KEOGH, TIAA-CREF or other qualified pension or profit-sharing plan.  You maintain complete access to the assets during your lifetime, and any gifts that later come to the university can be deducted from your taxable estate.  Your plan administrator or financial institution can provide you with the necessary forms to designate the University as a beneficiary.

Gift of Real Property with a Retained Life Estate
In a life estate gift, you commit to giving your currently occupied home or property to the University in the future; however, you continue enjoying your home and immediately receive a tax deduction.  However, normal insurance, maintenance and taxes still remain your responsibility.  

Life Insurance Policies
You may also give to the University by transferring all right of ownership to your existing life insurance policy.  If you do so, you may take a charitable deduction equal to the policy’s replacement value or your basis in the policy, whichever is less.  If you choose to continue to pay premiums on the policy, an income tax deduction is allowed for each payment.

The University has the option of holding the policy, terminating the policy and taking the cash surrender value, or taking out a loan against the policy.  A gift of life insurance is a good choice for giving when the original purpose of the policy, such as mortgage protection, is no longer relevant, the policy is paid up or you can continue to make payments, and there is a high cost basis or replacement value for the policy.