Goal: To support the College but retain your assets while you are alive with the ability to alter plans should circumstances change.

Minimum Gift: Any amount

In addition to incorporating a provision for Lafayette in a will or trust document, you may also bequeath money to Lafayette through your IRA, or other qualified plan such as a 401(k) or 403(b). This allows you to avoid significant taxation and is easier to establish than a traditional bequest. Like a will provision, naming Lafayette as an account beneficiary enables you to retain your assets and avoid binding agreements.

While the IRS basic exclusion doubled under the 2017 tax bill, that provision will sunset in 2025. Putting plans in place to ensure your IRA is guarded from hefty estate and income taxes, now and in the future, may be a prudent decision.

Regardless of the size of your estate, the named recipient of your qualified plan will still be subject to a significant income tax. By designating Lafayette as the beneficiary of all or part of your IRA, you ensure that the full value of the gift will be transferred tax-free upon your death, and your estate will receive a charitable deduction. If you wish to leave your IRA to your spouse at the time of your death, you may designate the College as the secondary beneficiary ensuring that the full value of your account transfers tax-free should your spouse pass before you.

To name Lafayette as the beneficiary of a retirement asset, contact your account custodian to obtain a beneficiary designation form. Unlike wills or trusts, which require an attorney, you can direct a legacy gift to Lafayette by simply completing the necessary paperwork.

If Lafayette has been named as a beneficiary, please let us know by filling out and returning a Statement of Deferred Gift Provision. We would enjoy recognizing you for your commitment while understanding that unforeseen circumstances may alter your plans sometime in the future.

When notifying the College of your estate plans, documentation can be put in place to ensure your gift will be used according to your wishes.

To learn more, read how Brad Meigs ’71 decided to support Lafayette by naming the College as a beneficiary of his 401k.

 

Joseph Samaritano ’91

Director of Gift Planning

1 Markle Hall
Easton, PA 18042
samaritj@lafayette.edu

This information is not intended as tax, legal, or financial advice. Gift results may vary. Consult your personal adviser for information specific to your situation.