Bequests, Retirement Plans, and Gifts of Real Estate

Every year, one of the most significant ways that many alumni and friends choose to support the College is through their estate planning. These gifts serve as the foundation and building blocks on which Earlham can continue to grow its academic excellence and provide special learning opportunities for its students. Your own thoughtful planning and generosity can help these educational experiences continue for future Earlhamites.

Gifts by Will

The following illustrations will assist you should you choose to include Earlham College in your will. Please consult your attorney for exact wording to meet your needs and requirements.

Once you have completed your new will, we would be ever so thankful if you would be willing to share with us a copy of the section that pertains to Earlham. We greatly appreciate your thoughtful planning and generosity. This is a wonderful to way to support the continued growth of the College well into the future.

Percentage
"I give, devise, and bequeath to Earlham College, a nonprofit corporation existing under the laws of the State of Indiana and located in Richmond, Indiana,                % of my estate."

Dollar Amount
"I give, devise, and bequeath to Earlham College, a nonprofit corporation existing under the laws of the State of Indiana and located in Richmond, Indiana, $               ."

Specific Property
"I give, devise, and bequeath to Earlham College, a nonprofit corporation existing under the laws of the State of Indiana and located in Richmond, Indiana, (description of property), located at (exact location)."

Residue
(A residuary bequest gives whatever is left after all debts, expenses and all other specific bequests have been granted.)

"All the residue of my estate, including real and personal property, I give, devise, and bequeath to Earlham College, a nonprofit corporation existing under the laws of the State of Indiana and located in Richmond, Indiana."

Future Gifts Through Retirement Plans

Retirement plans like 401(k)s, 403(b)s, IRAs, and other qualified retirement plans provide significant income during the lifetimes of most retirees. Many retirees, however, are unaware how severely their retirement plans will be taxed when their residual estate is given to a child, friend or relative after their death. In some instances, heirs can receive as little as 30% of the plan after taxes. As a consequence of these severe tax liabilities, a retirement plan can be a very good gift to leave to Earlham - as well as an easy gift to make.

If you have a traditional IRA or pension plan, you can designate the College as the beneficiary of any remaining funds that you do not use. By making this charitable gift, you ensure that your estate will also receive a charitable deduction for the full value of the remaining assets. For more information on gifts through retirement plans, please contact Kim Tanner in the Planned Giving Office at Earlham.

Gifts of Real Estate

When considering ways to make charitable gifts more effectively, many have discovered that gifts of real estate can have special benefits for both the donor and the recipient.

Make a gift...yet retain use of the property:
A retained life estate is a gift plan defined by federal tax law that allows you to donate your home or farm to Earlham while retaining the right to live in it for the rest of your life.

As the creator of a retained life estate, you irrevocably deed to Earlham your home or farm, but retain the right to live in it for the rest of your life, a term of years, or a combination of the two. You may also use a vacation home to create this kind of gift.

While you retain the right to live on your property, you continue to be responsible for all routine expenses - maintenance fees, insurance, property taxes, repairs, etc. If you later decide to vacate your property, you may rent all or part of the property to someone else or sell the property in cooperation with Earlham.

When your retained life estate ends, Earlham can then use your property or the proceeds from the sale of your property for the purpose you designate.

Using Real Estate to fund a Life Income Arrangement:
Charitable gifts of real estate may also be made in ways that result in income to you for life or another period of time you choose. Several life income gift options are available through Earlham, for more information visit Life Income Gifts.

Regardless of the type of gift chosen, it is possible to avoid capital gains tax on the increase value of the property at the time the gift is made, turn a non-income producing asset into income, as well as enjoy a current income tax deduction for the value of the gift (as determined by government tables).

For more information on gifts through real estate, please contact Kim Tanner in the Planned Giving Office at Earlham.