What will your legacy be?

Bequests: Perhaps the most obvious way to make a planned gift is with a provision in your will or trust, stating that SDCSL should receive a gift (either a speci fic asset, speci fic amount, or percentage of your estate) upon your death. Although it may be a simple process, a bequest might not be the best way for you. If you have a traditional Individual Retirement Account (IRA) or other tax deferred retirement account, you can make SDCSL a beneficiary of the IRA, stated as a percentage of the total value. You simply make a new beneficiary designation naming SDCSL as a beneficiary and, upon your death, SDCSL will receive the gift. The reason this might be a better way is that SDCSL is tax exempt, so what would have been taxable, if left to your heirs, is not taxable to SDCSL. The basic objective is to leave taxable assets to charity and nontaxable assets to your heirs. Other Revocable Planned Gifts: A legacy gift of real property A payable on death (POD) designation on a bank or brokerage account A designation of beneficiary of a life insurance policy A designation of beneficiary of a donor advised fund.

Irrevocable gifts might be an appropriate option, because they provide income and tax benefits now, in exchange for an irrevocable future gift to SDCSL. One option is a Charitable Remainder Trust (CRT) for more flexibility and control with the same or better income and tax benefits. A CRT involves higher maintenance costs and works best for a larger planned giving program. Because of their nature, you should always consult with your legal and tax advisors before making any irrevocable gift.

We can’t provide tax or legal advice but we can answer many questions relating to various types of planned gifts and which type might work best for you.