Planned Giving - Define Your Legacy and Make a Difference!

Planned Giving

With thoughtful planning, anyone can provide for their financial goals and help Jacksonville University continue to be an extraordinary place to learn. Planning may allow you to:
  • Benefit family and friends while providing for the university that is important to you
  • Leave a personal legacy that reflects your values and beliefs
  • Take advantage of possible tax benefits
  • Receive the satisfaction of giving back in a meaningful way
Legacy gifts take many forms, and reasons to include JU in one's financial and estate plan are as unique as each individual, but they share a single purpose: to ensure that Jacksonville University will prosper in the future.

We appreciate the continued commitment of alumni and friends to JU students and thank them for all they do to make our good work possible. We would be honored to assist you, too. JU's success depends on your vision and generosity.
How to Make a Difference at JU
You want to make a difference at JU, but don't know where to begin? Identify your goals and review possible strategies to achieve them.
Plan Your Gift At Any Age
Simple Planning Tips to protect your family and support JU too!


Contact Us
Maria Pellegrino-Yokitis, JD
Director of Major Gifts and Planned Giving
Jacksonville University
2800 University Blvd. N.
Jacksonville, FL 32211
(904) 256-7928
Tax ID: 59-0624412


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Saturday January 21, 2017

Case of the Week

Living on the Edge, Part 1


Rhea Jones, 75, lives in a beautiful coastal town in northern California. Rhea's home occupies three magnificent acres of bluff property that overlooks the crashing waves of the Pacific. Since her home sits just steps away from the dramatic cliffs, Rhea frequently jokes to her friends about her "living on the edge" lifestyle.

John, Rhea's husband of 50 years, built the custom home ten years ago. It was truly the realization of a lifelong dream of John and Rhea. Unfortunately, John passed away unexpectedly five years ago. Now, Rhea lives alone in the large home, nevertheless, she is looking forward to spending her remaining days there. Not surprisingly, she frequently plays host to her children, grandchildren and friends.

Rhea is an active philanthropist. In fact, she spends three days a week volunteering with local charities. While very wealthy and philanthropic, Rhea makes only modest yearly gifts. However, she intends to make a substantial bequest upon her death. Specifically, Rhea plans on distributing her entire estate to her children and grandchildren, except for her cliff-side home. Rhea's will provides that the home passes to John and Rhea's favorite charity upon her death. The home is worth $3 million.

However, at a recent estate planning presentation, Rhea discovered the benefits of a gift of a remainder interest in a personal residence. In particular, she liked the potential significant tax savings and the home's avoidance of the probate process. Also, because the gift is irrevocable, the local charity would recognize and honor Rhea for her generous gift at the annual fund raising gala. Of course, Rhea retains the right to live in her home for the rest of her life, which is her absolute requirement to any potential gift arrangement.


Rhea is very excited about this gift arrangement, but she has many questions. Before she commits to the gift plan, she wants to address several issues. First, how is the transfer of the home accomplished? Is a trust involved? Is a contract required?


An individual may receive a charitable income tax deduction for the gift of a remainder interest in a personal residence or farm. See Sec. 170(f)(3)(B)(i). Specifically, Rhea would deed the home to the qualified charity but reserve a life estate in the property. For simplicity, a quitclaim deed may be used. In the alternative, a warranty deed or similar deed may be used. After the deed transfer, the deed should be recorded. This process is very similar to any other transfer of property, except for the lack of consideration (i.e., money changing hands) and the reservation of a life estate in the home.

A charitable trust is not part of this gift plan. However, a contract is commonly an additional part of this gift plan. Under the common law of most states, Rhea, the life tenant, is obligated to maintain the home during her life. However, it is prudent to create a written agreement that clarifies the roles and responsibilities of both Rhea and the charity.

The written agreement, called a maintenance, insurance and taxes ("MIT") agreement, defines the responsibilities of Rhea as life tenant. Specifically, Rhea maintains the property in its current condition. Since she is residing in the property, Rhea also maintains insurance and pays the real estate taxes. A sample MIT agreement is available in GiftLaw Pro Chapter 3.7.2.

Editor's Note: While Rhea is required to maintain insurance, many charities take the additional precaution of adding the home to their master insurance list. On another note, the deed of the remainder interest in the home to charity must not be restricted. When Rhea passes away, the charity must receive title to the home. If the charity does not receive an unrestricted right to the property, Rhea's deduction could be denied.

Published January 13, 2017
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