A University of Michigan alumni who had never given a big gift before left the school over $30 million in his will, the Detroit Free Press reported June 28.
Lincoln Knorr gave the school about $1,000 each year while alive, but never served on an alumni committee or marched in a single homecoming parade. Both the university and Knorr’s family were surprised by the gift.
His donations will be held in two trusts. The first, valued at $30 million, will pay the university 5 percent of the trust’s market value each year. When the payments and the remainder of the trust total $1 billion, all of the money will be transferred to the university. The money will be placed in the university’s endowment fund, currently valued at about $3 billion.
The second trust, valued at $3 million, will be used to provide income to Knorr’s 99-year-old mother. When she dies, the income will go to his brother Keith Knorr. When he dies, the money will be given to the university.
The Knorr donation should be worth about $1 billion in 30 to 40 years, university officials told the Free Press. Knorr stipulated that consideration be given to the colleges of business and law, but there are no other restrictions on how the money is spent.
For full text, see the Detroit Free Press.