Case Study

Perhaps you own securities that you'd eventually like to give to University of Northern Iowa Foundation but aren't necessarily ready to part with them today. After all, you never know when you might need them. Consider the possibilities that a gift of securities in your will or trust can bring.

The following is an illustration of how this type of donation works.

Alvin was no stranger to philanthropy. Each year he faithfully donated to University of Northern Iowa Foundation and wanted to extend his support beyond his lifetime. To formalize his wishes, he consulted with a local estate planning attorney who drafted a will and revocable living trust. A specific bequest of company securities was included in the trust.

The Outcome
Alvin passed away several years later. At the time of Alvin's death, the value of the stock was $1 million and his estate was subject to a federal estate tax rate of 35 percent. Alvin's estate was able to take advantage of the unlimited estate tax charitable deduction and saved $350,000 in federal estate taxes.

The Benefits

• Alvin extended the pattern of giving he had established while he was alive.
• Alvin's favorite charity, University of Northern Iowa Foundation, received $1 million in securities.
• Alvin's estate took advantage of the unlimited charitable deduction.
• Alvin's estate saved $350,000 in federal estate taxes.