Retirement plans and IRAs are among the most highly taxed assets in an estate—50% or more of the assets can be lost to estate and income taxes.
Because Princeton is a tax-exempt institution, ownership of retirement assets can pass to the University free of taxes. Alumni and friends who would like to make a tax-efficient bequest should consider naming Princeton as a beneficiary of an IRA, Keogh, tax-sheltered annuity, qualified pension, or profit-sharing plan—it’s the most tax-efficient way to create a legacy.
Examples of Retirement Plan Gifts
Capping a Lifetime of Giving
George Marshall Hornblower ’39, a partner at the law firm Wilmer, Cutler & Pickering, held a 401(k) plan with the firm. He designated Princeton and another institution as beneficiaries of the plan. If he had not taken care to designate charities as the beneficiaries, it is possible that over $400,000 in his 401(k) would have been lost to taxes. Instead the two organizations are able to put this money to good use. He was able to cap a lifetime of giving to Princeton—64 consecutive years to Annual Giving—with a wonderful, unrestricted gift.
A Professor's Thoughtful Gift
Kathryn (“Kitty”) Conway Preyer S45 spent nearly her entire career as a professor of history at Wellesley College, where she taught American history. She made generous gifts to Wellesley and chose to honor her husband, Robert Preyer ’45, by giving Princeton the tiger’s share of her TIAA account. The bequest was added to the fellowship in the Department of English that was established in her husband’s name.
We encourage you to contact the Office of Gift Planning at 609.258.6318 or firstname.lastname@example.org to discuss your gift of retirement assets to Princeton.