"The University of Iowa was a very important part of our lives, and it was a springboard to our futures. We still have great memories from our time at Iowa."
Seventeen years ago, Larry Smith (1958 B.A.) received devastating news—he had cancer. After a radical prostatectomy, which helped Larry beat prostate cancer, he was diagnosed with chronic lymphocytic leukemia in 2008. Again, Larry bested cancer after rigorous chemotherapy treatments. “I’ve been fortunate enough to escape real long-term effects of cancer,” says Larry. “I’ve been very, very fortunate, but it’s broadened my interest in cancer research, specifically, research involving young adults and adolescents.”
While Larry received his medical care in Texas—where he and his wife, Gail, have lived since 1969—the Smiths will be supporting cancer research at Holden Comprehensive Cancer Center at the University of Iowa through a bequest in their estate plans. “The University of Iowa was a very important part of our lives, and it was a springboard to our futures,” says Larry, who worked for Chilton Corporation in Dallas, Texas, eventually serving as executive vice president and head of operations and sales. “We still have great memories from our time at Iowa.”
Those memories are a major reason why the Smiths have given back to the University of Iowa for more than 30 years. “Larry and I decided several years ago that we would pick one thing to support,” says Gail, who was a stay-at-home mother for their two daughters, Kelly Van Compernolle (1982 B.A.) and Kerry Ahlfinger, and later ran a high-end furniture showroom. “The University of Iowa has always been our choice.”
While the Smiths, who are University of Iowa Presidents Club members, have given to Holden and created scholarships for students from their hometowns—Wapello, Iowa, and Panora, Iowa—they’ve also supported UI Children’s Hospital, the Hawkeye Marching Band, the Iowa Impact Fund, the Department of Intercollegiate Athletics, and the Department of Sociology. “Gail and I admire individuals who have given back—whether it’s those here in Texas who give to hospitals and schools, or individuals such as Henry Tippie or John Pappajohn who give to Iowa,” says Larry. “We’ve tried to emulate their philanthropic efforts in our own way.”
The Smiths also have created a UI scholarship and supported University of Iowa Children’s Hospital through a life insurance policy. They have named the UI Foundation as beneficiary but maintain lifetime ownership rights to the policy—the right to borrow against the policy or cash it in, for example. Should the Smiths ever change their mind about naming the UI Foundation as the beneficiary of the policy, they can simply fill out a new beneficiary designation form.
“We determined the life insurance policy was something we would never use, even if we lived 100 years,” says Larry. “And, our children wouldn’t need it, either. We thought it was a good way to give back to the University of Iowa.”
Learn more about how you can make an impact at foriowa.org/ways.
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.
A charitable bequest is one or two sentences in your will or living trust that leave to the University of Iowa a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.
an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan
"I give to the University of Iowa, a nonprofit corporation currently located at Iowa City, Iowa, or its successor thereto, ______________* [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."
able to be changed or cancelled
A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.
cannot be changed or cancelled
tax on gifts generally paid by the person making the gift rather than the recipient
the original value of an asset, such as stock, before its appreciation or depreciation
the growth in value of an asset like stock or real estate since the original purchase
the price a willing buyer and willing seller can agree on
The person receiving the gift annuity payments.
the part of an estate left after debts, taxes and specific bequests have been paid
a written and properly witnessed legal change to a will
the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will
A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to the UI Foundation or other charities. You cannot direct the gifts.
An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.
Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.
Securities, real estate or any other property having a fair market value greater than its original purchase price.
Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.
A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.
You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.
You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to the UI Foundation as a lump sum.
You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to the UI Foundation as a lump sum.
A beneficiary designation clearly identifies how specific assets will be distributed after your death.
A charitable gift annuity involves a simple contract between you and the UI Foundation where you agree to make a gift to the UI Foundation and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.