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  • 1.  Selling a GIK

    Posted 05-09-2024 02:56 PM

    Good afternoon, 

    I have a unique situation I'd like feedback on. Way back in 1955, Cornell University was gifted a grandfather clock, which has been displayed in our downtown office building for quite some time. The clock is unique and quite valuable. For many years we have kept an insurance policy on it; however, leadership is now questioning if we can sell it and avoid having to renew the policy.  After researching its origin, there is no gift agreement or accompanying documentation that can be found although we know where it came from (donor is deceased). 

    Is there any reason the clock can not be sold?  If we decide to sell the clock, what obligations do we have for the proceeds received? I am assuming leadership can decide where the funds go. Anything else we need to consider? 

    Your input would be appreciated. 

    Diane

     



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    Diane Pierce
    Sr. Director, Advancement Services
    Cornell University
    dmp296@cornell.edu
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  • 2.  RE: Selling a GIK

    Posted 05-10-2024 09:50 AM
    You have nothing to worry about from a legal perspective. However, while the donor is deceased, there could be heirs who may not be thrilled to learn of your liquidation of the clock without at least giving them a chance to buy it.

    Regardless, a gift is an irrevocable transfer of an asset. You can do whatever you want with the asset, barring any mutual agreement on restrictions. And, since you are well past the three-year 8282 filing requirement, that is off the table, too.

    You will want to keep Finance in the loop. Cornell will likely need to pay sales tax on the amount the clock is sold for.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987