Giving That Benefits UVA Health and Your Family

You're passionate about making a difference through life-changing patient care and research, but you don’t have immediate resources to make a gift. You’re also unsure what will happen with the economy and need to save for retirement. Your family comes first, and they may need everything. We hear these common concerns at UVA Health, but they are not insurmountable. There are ways to make a gift that can save lives, alleviate income and estate taxes, and, at the same time, help take care of your family. These planned gifts are philanthropic solutions that benefit everyone. They allow you to engage a tax-burdened asset or use a charitable gift vehicle that benefits you and UVA Health. A planned gift allows you to do one or more of the following:

• Retain assets you might need now or in retirement
• Engage illiquid assets in a tax-efficient way
• Pay you or loved ones an annual income
• Maintain the flexibility to modify your gift if your circumstances change

Planned gifts provide current and/or future support to UVA Health, sustaining the work of our health care providers and researchers and creating a positive ripple effect on thousands of patients and families in the years to come. Here are a few examples of how you can accomplish your personal and philanthropic goals with a planned gift.

Give with Flexibility
In times of economic uncertainty, there can be peace of mind in knowing that your gift is modifiable should your financial situation change. Bequests and beneficiary designations are among the most flexible ways to support UVA Health. To make a bequest, simply include a provision in your will or living trust giving UVA Health a specific amount or a percentage of your residuary estate. You can name UVA Health as a beneficiary of your life insurance policy, retirement plan, or bank account by completing a simple beneficiary designation form provided by your life insurance company, retirement plan administrator, or financial institution. This process can be done without assistance from an attorney. The amounts you leave to UVA Health will pass free of estate tax and, in the case of retirement assets, income tax.

Give From Your IRA
If you are at least 70½ years old, you are eligible to make qualified charitable distributions (QCDs) of up to $100,000 annually from your IRA.

QCDs that are used to make outright gifts are excluded from federal taxable income and count toward required minimum distributions. As of 2023, you can make a one-time-only QCD of up to $50,000 to fund a new charitable gift annuity or charitable remainder trust.

Give a Gift of Property
A gift of real estate may allow you to make a greater investment in the future of UVA Health and the patients we serve and may have tax and other financial benefits. Depending on your goals, there are several options for making a gift of real estate. Giving your property outright to UVA Health or using a gift of real estate to fund a trust will unburden you of the costs and other responsibilities of ownership.

Real estate can be used to fund a flip charitable remainder unitrust. Once funded with your property, the trust will make annual payments to you for life or a term you select for up to 20 years. At the end of the trust term, the remaining assets will pass to UVA. With a retained life estate, you make a gift of your residence, receive a charitable income tax deduction, and live in and maintain your home for the rest of your life.

Give and Receive
Would you like to supplement retirement income for you and your spouse or provide for a family member? Life income gifts provide annual payments for you or a loved one (or both) and tax deductions for you or your estate. They result in legacy gifts that benefit patients at UVA Health in the future. They can be funded with cash or securities and, in some cases, real estate. Starting in 2023, if you are at least 70½ years old, you may use a qualified charitable distribution from your IRA to create a charitable gift annuity or charitable remainder trust.

Advantages of a life income gift can include:

• Reducing exposure to market volatility
• Converting low-dividend-yielding stock to higher fixed or variable income
• Converting real estate or other illiquid assets into a reliable income stream
• Realizing tax advantages, such as avoiding a portion of the capital gain on appreciated securities and receiving a charitable income tax deduction in the year of the gift.

A charitable gift annuity (CGA) is a simple contract between you and the University of Virginia Foundation. In exchange for your gift of cash or stock, you or a loved one (or both) receive a fixed annuity for life. At the end of the contract term, the remainder goes to UVA Health for a purpose you designate.

CGA payment rates increased twice in the last year, so now is an excellent time to consider this gift option. Rates currently range from 4.5% to 9.7% and depend on the age(s) of the income beneficiary(ies) when income begins. Income may start immediately or be deferred for one or more years, increasing the payout rate. Income beneficiaries must be at least 55 years of age. (For an illustration of estimated benefits, including the gift annuity rates and income tax charitable deduction you are eligible to receive, please email me and provide your current age(s).)

Authored by Erin Hughey-Commers