Gifts by Beneficiary Designation
A Legacy Made Simple
Would you like to help continue the extraordinary legacy of generous support to St. Thomas University’s commitment to the academic and professional success of its students who become ethical leaders in our global community? You can do this by designating St. Thomas University as a beneficiary of certain assets or accounts you own. You arrange your gift now and at your passing your gift becomes available to St. Thomas University to use as you have directed.
You can name St. Thomas University as the sole beneficiary of your assets or as one of several beneficiaries. For example, you can use some of your assets to make a donation and the rest to provide for family members or other loved ones.
Assets to consider designating for STU:
- Retirement plan assets
- Life insurance policies
- Commercial annuity contracts
- Bank and investment accounts
Benefits of a gift by beneficiary designation:
- Flexible – assets remain in your control should you need them.
- Easy to arrange – doesn’t require a change to your will.
- Revocable – you can change your gift designation at any time.
- Tax-wise – funds passing by beneficiary designation to St. Thomas University are not subject to income or estate tax. This means 100% of your gift is available for use by STU, as you direct. • Family-friendly – you can name family or other loved ones to benefit from some of the asset, with STU receiving the remaining portion.
- Support your cause – your gift helps ensure STU has the resources it needs to fulfill its mission
and serve future generations.
Retirement assets
These include IRAs (regardless of the type of IRA) and most qualified retirement plans, such as 401(k) and 403(b) plans. Request a Beneficiary Designation Form from your plan administrator and designate STU as a beneficiary of either a percentage of your plan balance or of a specific dollar amount.
Retirement assets can be taxed at rates as high as 37% if you leave them to someone other than a surviving spouse. Depending on what state you and your heirs live in, your assets could also be subject to an additional 40% in federal and/or state wealth transfer taxes. This is because most distributions* to an individual from an IRA, 401(k), 403(b), or other qualified retirement plan are subject to both income tax and estate tax on both the federal and state level.
In contrast, retirement funds that pass to St. Thomas University by beneficiary designation are not subject to any of these taxes*. From a tax standpoint, a transfer of assets remaining in an IRA or other retirement account is the very best charitable gift.
Life insurance policies
Simply complete and return to your insurance company a form designating that STU receive all or a portion of the death benefit associated with your life insurance policy.
Commercial annuity contracts
A commercial annuity will sometimes have a remaining value at the end of the annuitant’s lifetime. You can name STU to receive all or part of this amount by designating it as a beneficiary (sole or partial) on the appropriate form from the insurance company.
*Bank account
You can instruct your bank to pay to STU all or a portion of what remains in your checking or savings account. Your bank can provide you with the appropriate beneficiary designation form.
Investment account
You can instruct your investment company to transfer to STU some or all investments held in your account at the time of your passing. Your broker or agent can let you know the process for doing this – it may be as simple as adding “T.O.D. to St. Thomas University” after your name on the account.
Please let us know if we can help
Vice President of Philanthropy
Phone: (305) 628-6796
rhoffman@stu.edu
16401NW 37th Avenue
Miami, FL 33054
This information is not intended as legal, accounting or other professional advice. For assistance in charitable planning, consult an attorney for legal advice or obtain the services of another qualified professional.
Tax ID # 59 – 094 9880
* The only exceptions to the possible double-taxation are distributions from a Roth IRA or distributions attributable to contributions of after-tax dollars to other types of IRA. Because everyone’s situation is different, we encourage you to seek professional legal, estate planning, and financial advice before deciding on a course of action. This information does not constitute legal or financial advice and should not be relied upon as a substitute for professional advice.
