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Commitments Through Your Estate

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.
  • NYU Langone recommends this option for persons 65 years of age or older.

Benefits of Estate Notes:

  • You may make a charitable gift to NYU Langone 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 NYU Langone is already in your will, an estate note may be signed for some portion of the bequest you expect to come to NYU Langone.
  • 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.

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Disclaimer: The information provided is general in nature and may not apply to all individuals. This information does not constitute legal or tax advice. We urge you to consult with your personal tax, financial, and legal advisors concerning the specific consequences of making gifts to NYU Langone Health. We would be pleased to discuss, in confidence, ways in which you may support NYU Langone Health.