Issued: April 3, 1989
Latest Revision: February 7, 2000
BEQUESTS AND UNIVERSITY LIFE INCOME PLANS
This policy describes the general guidelines for bequests and university life income plans.
2.0 Policy [Top]
Periodic stewardship to relatives will be organized by the University Director of Communications and Stewardship in coordination with the recipient department.
The general policy described in Policy IX.A.6 pertain to both inter vivos gifts and bequests. Requests for information concerning life income gift and bequest language must be directed to the University Office of Planned Giving. Due to complexities of trust and annuity agreements, all correspondence regarding specific recommendations of life income plans, especially income and tax information, must be pre-approved by a member of the Planned Giving staff.
Unrestricted lifetime gifts permit flexibility and use of funds at the University, but other gifts and bequests should be established with the provision of a contingency clause permitting the University to use the funds in a manner which will most nearly satisfy the wishes of the donor in the event that the original purpose can no longer be achieved. To address the requirement that principal amounts of deferred gifts meet minimum University required amounts for named endowments at the time the gifts are realized for use by the University, the Planned Giving staff will include language in trust and annuity agreements and will work with the Office of the Legal Adviser, if necessary, to provide appropriate bequest language to potential donors and their advisers. Should the amount of the lifetime gift or bequest be insufficient to satisfy the minimum requirements for the establishment of a named endowment as determined by the Board of Visitors, the principal of the life income gift or bequest shall be transferred to and merged with an already existing endowment fund whose purpose is in keeping with the desires of the donor.
The Planned Giving Office will coordinate the terms and conditions of gifts to create charitable remainder unitrusts, charitable remainder annuity trusts, charitable income (lead) trusts or charitable gift annuities, and the terms and conditions of gifts which are acceptable for a pooled income fund trust. Normally, the income from a gift establishing a life income plan at the University will be paid quarterly to the first beneficiary, and may also be paid either concurrently or successively to a second beneficiary, for his or her lifetime.
The University of Virginia Pooled Income Fund is supervised by the University Treasurer's Office and is managed by Connecticut Bank and Trust. A gift to this fund will be commingled with gifts of others as in a mutual fund. The Pooled Income Fund's investment objective is prudent and high-income yield. A gift may be unrestricted or may be designated for a purpose specified by the donor.
Separately-invested trusts and annuities are managed either by the Office of the Treasurer or through the UVA Fund, as part of the University of Virginia Alumni Association. At the termination of any life income contract, the share of the trust or the annuity fund attributable to the donor's contribution is transferred to the University. If the donor so designates in writing at the time of the gift, the funds may be designated for a specific area of the University. Amendments for application of the eventual use of life income fund principal must be made in writing to the Director of Planned Giving.
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]