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Charitable bequests

 

A charitable bequest is a planned future donation from your estate to a charity of your choice.  Your estate is the sum of your assets, whether in the form of cash, real and personal property, insurance policies, retirement or bank accounts, or some other form.  By making a charitable bequest (sometimes called a legacy gift), you can create a philanthropic legacy for the organizations that you care about.

 

The most common ways of creating charitable bequests are listed below.  You may designate (1) a specific dollar amount; (2) a specific item, such as real estate, artwork, jewelry, stocks, bonds or mutual funds; or (3) a percentage of your residuary estate (the portion of your estate remaining after all other bequests, debts and taxes have been paid).  Of course, you should always carefully review any changes in your estate planning with an estate planning attorney.

 

Common forms of legacy giving:

 

Checking, savings, pension or retirement accounts:

You can name SAIPC as beneficiary of your checking, savings, pension or retirement accounts.  Donating to a charity such as SAIPC can in some contexts lessen tax penalties associated with pension and retirement accounts.  Your estate planning attorney will be knowledgeable about these issues.

 

Will:

A will is a document specifying how your estate is to be managed and distributed after your lifetime.  Following is sample bequest language that you can share with your estate planning attorney to include in your will:

 

“I, [name], of [city, state and zip code], give, devise and bequeath the sum of $_____ [or name of specific property; or ____% of the residuary of my estate] to San Antonio International Piano Competition, federal tax identification number _______, having the permanent address of P.O. Box ___, San Antonio, TX _____, for its unrestricted use and purpose.”

 

Revocable living trust:

A living trust is similar to a will, except that it goes into effect while you are alive, and is not subject to the probate process.  A living will is managed by a trustee of your choosing, and is used to manage assets both during your lifetime and after.  The revocable living trust becomes irrevocable after your lifetime.  The same bequest language used in a will can be used in a living trust.  Here is sample language to share with your estate planning attorney:

 

“I, [name], of [city, state and zip code], give, devise and bequeath the sum of $_____ [or name of specific property; or ____% of the residuary of my estate] to San Antonio International Piano Competition, federal tax identification number _______, having the permanent address of P.O. Box ___, San Antonio, TX _____, for its unrestricted use and purpose.”

 

There are also more complex types of legacy giving, such as life income gifts, charitable gift annuities, charitable remainder trusts, to name a few.  These types of giving require particularly careful assistance from an estate planning attorney.