Gifts by Estate Note

What Is an Estate Note?

  • An estate note is an irrevocable pledge or debt against the donor's estate.
  • This instrument binds the donor's estate to the extent not paid during the donor's lifetime.
  • Estate notes may be pledged for either one or two lives. With a two-life estate note, the obligation is binding only on the estate of the person who lives longer.
  • The UW-Platteville Foundation recommends this option for persons 65 years of age or older.

Benefits of Estate Notes:

  • You may make a charitable gift to the UW-Platteville Foundation after your lifetime without revising your current will or estate plans.
  • There is no obligation to transfer assets during the donor's lifetime. However, the estate note offers the flexibility to make payments against the note during one's life.
  • Dollar amounts of estate notes count toward fundraising campaigns, while bequest intentions sometimes do not. If the UW-Platteville Foundation is already in your will, an estate note may be signed for some portion of the bequest you expect to come to the UW-Platteville Foundation.
  • Charitable contributions from estate notes may be designated for specific purposes.

Tax Considerations:

  • Signing an estate note does not qualify the donor for a charitable deduction.
  • Payments against the obligation during a donor's lifetime will provide income-tax deductions in the year made (up to the full amounts permitted by the IRS tax code).
  • Unpaid estate note balances will provide the estate with an estate-tax deduction. Any amount outstanding on the estate note is deducted from the gross estate before any taxes are applied.

More Information

Contact Us

Stacia Stephenson
Interim Executive Director
stephensons@uwplatt.edu
608.732.0629

 

Office of Planned Giving
UW-Platteville Foundation
1 University Plaza
Platteville, WI 53818

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