Planned Giving
Planned Giving
Thank you for your concern for helping young artists in the future, and thank you for allowing us to help you accomplish this goal.
This information provides general guidance. It is not a substitute for professional counsel, rather a way to consider possibilities and save research time before talking to your tax or legal advisor, who will help you frame your wishes legally and properly.
BEQUEST
Your gift to the Santa Barbara Art Association Student Art Fund in your will or in your revocable trust might be considered as one of your investments in the lives of future generations. A bequest in your will or a transfer from your revocable trust:
is easy to arrange,
does not affect your assets or cash flow during your lifetime,
has no upper limit on the estate tax deductions, and
is revocable should you change your mind.
You can create a bequest in several different ways depending on what fits you best. Here are three options for making a bequest:
A SPECIFIC BEQUEST
A specific dollar amount or asset is left to the Santa Barbara Art Association Student Art Fund. Some examples:
“ I give, devise, and bequeath to the Santa Barbara Art Association, Santa Barbara, California, Tax ID #23-7094230 for use by the Student Art Fund, $30,000 to be used for general purposes.”
“I give, devise, and bequeath to the Santa Barbara Art Association, Santa Barbara, California, Tax ID #23-7094230 for use by the Student Art Fund, all my shares of Intel stock to be used for general purposes.”
A RESIDUARY BEQUEST
A percent of your estate is left to the Santa Barbara Art Association Student Art Fund. An example:
“I give, devise, and bequeath to the Santa Barbara Art Association, Santa Barbara, California, Tax ID #23-7094230 for use by the Student Art Fund, 20% of the residue of my estate to be used for general purposes.”
A CONTINGENT BEQUEST
In the event the person named in your will or revocable trust cannot inherit as you intended, then the second beneficiary could be the Santa Barbara Art Association Student Art Fund. An example:
“If my niece does not survive me or is unable to inherit this bequest, I direct that it be given to the Santa Barbara Art Association, Santa Barbara, California, Tax ID #23-7094230 for use by the Student Art Fund, to be used for general purposes.”
It is difficult to determine now the most pressing needs for accomplishing our goals in the future when your gift is received and goes to work. So that it can be most useful and prudently administered we prefer that the terms of a bequest be kept as general as possible, hence, the “general purposes”
designation. This will allow future generations to meet and solve future problems.
RETIREMENT ACCOUNT
Retirement accounts (403(b), 401(k), IRA ) are quite common today. The forms you fill out ask for a beneficiary or beneficiaries. Should there be no spouse as beneficiary, using this to fulfill your wishes to leave a gift to the Santa Barbara Art Association Student Art Fund with money remaining at your passing may have advantages.
Whatever funds are left in the account will not go through probate but rather will go directly to the Santa Barbara Art Association Student Art Fund.
These funds will not be a part of your estate for tax purposes. Your estate will be entitled to claim an estate tax deduction for your charitable bequest.
Unlike a person, the Student Art Fund can receive this gift without paying taxes (which would diminish the amount of your gift) because the Santa Barbara Art Association Student Art Fund is a tax-exempt public charity.
A percent of your remaining retirement account might be left to a person and a percent left to the Santa Barbara Art Association Student Art Fund to accomplish your purposes.
The beneficiary is revocable should you change your mind.
A tax or legal advisor can help you frame your desires properly to make your retirement account accomplish what you wish.
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