Bequests and Planned Giving

Bequests—both large and small—have helped shape Magdalene for centuries.  By means of your Will or other estate plan, you can name the Magdalene College Foundation as the beneficiary of a portion of your estate or of particular assets in your estate.  Giving by bequest costs nothing now, yet it is often the easiest way to make a significant gift that lives on and provides a lasting benefit.

Many forms of planned giving can offer significant tax benefits – substantially reducing capital gains and estate taxes and/or providing immediate income to you or a beneficiary.

A Variety of Alternatives

There are several types of bequests and methods of planned giving, including the following:

  • Cash Bequest – a specific dollar amount from your estate
  • Bequest of Property – a gift of specific assets, such as securities, real estate, or tangible personal property (for example, works of art or antiques)
  • Residuary Bequest – a gift of all or a percentage of the remainder of your estate after the payment of any specific bequests and expenses
  • Contingent Bequest – a gift that takes effect only if other beneficiaries predecease you
  • Retirement Plan – you can designate The Magdalene College Foundation as a beneficiary of the remainder of your IRA or qualified pension or profit-sharing plan
  • Testamentary Trust – provides one or more heirs with income for life or a term of years, after which assets pass to The Magdalene College Foundation
  • Lead Trust – a trust established through a bequest under which The Magdalene College Foundation receives income for a term of years, after which the assets pass to your beneficiaries, often at a much-reduced tax cost
  • Charitable Remainder Trust – provides a potential immediate tax deduction and an income stream for you or your beneficiaries, with the remainder of the donated assets eventually going to The Magdalene College Foundation
  • Life Insurance – The Magdalene College Foundation can receive or be named as the beneficiary of all or part of a new or existing life insurance policy.  Depending upon the type of policy donated, you may receive an immediate tax deduction, and any future premium payments may also be tax deductible

IRA Charitable Rollover Permanently Extended

Use your traditional IRA to support Magdalene

The IRA Charitable Rollover provides an excellent opportunity to make a gift during your lifetime from an asset that could be subject to multiple levels of taxation if it remained in your taxable estate.

To find out if you gualify, the benefits and if IRA Charitable Rollover is right for you see the IRA Charitable Rollover page.

 

Benefits of a Bequest

An outright gift to the Magdalene College Foundation from your estate—whatever the amount and whether it is expendable or for endowment—is entirely free from US federal estate taxes. This means the full amount of the bequest is available, whereas if it were left to an individual, a significant amount might go to federal estate taxes. Also, bequests generally are not subject to state inheritance or estate taxes.

How to Make a Bequest

Following is simple language for a bequest to the Magdalene College Foundation:

“I bequeath to The Magdalene College Foundation, a 501(c)(3) non-profit corporation organized and existing under the laws of Delaware, with the business address of 1000 North West Street, Suite 1200, Wilmington, DE  19801, the sum of ________ [dollars or percentage of estate], to be used exclusively for its charitable purposes.  It is my hope and desire that these funds be utilized for the support of Magdalene College in the University of Cambridge for [its general purposes] or [for the benefit of <specific area(s) of support>).”

Buckingham Society

Those who support the Foundation through bequests and planned giving are cordially invited to join the Buckingham Society, named in honor of the first founding of the College as Buckingham College in 1428.  Members of the Buckingham Society are recognized for their intended gift to the Foundation and are invited to an annual luncheon at Magdalene College in early June.

Further Information

For assistance in drafting bequest provisions,transferring gifts from trusts and estates to the Magdalene College Foundation, or considering planned giving alternatives, please contact the Alumni & Development Office at development@magd.cam.ac.uk or +44 1223 332104.

Tax and estate planning can be complex.  The above does not constitute tax or legal advice, and donors are urged to seek qualified, independent advice as to which planned gift program best meets their financial and philanthropic goals.

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