Bequests
You can be assured that your support will continue in perpetuity by including TPCS in your will. TPCS is committed to utilizing your gift in the best way possible by continuing its mission to provide a school environment that promotes the whole child. Contributions through your will can be made in a number of different ways. You may give:
- A Percentage: “I give, devise, and bequeath to TPCS of Santa Cruz, California, _____ % of my estate to be used for its charitable purposes.”
- A Specific Dollar Amount: “I give, devise, and bequeath to TPCS of Santa Cruz, California, $xxx,xxx to be used for its charitable purposes.”
- A Residue: (Whatever is left after other bequests have been granted.) “All the residue of my estate, including real and personal property, I give, devise, and bequeath to TPCS of Santa Cruz, California, to be used for its charitable purposes.”
( Note: The above wording is suggested. Consult your attorney when preparing any legal document.)
Life Insurance
Although life insurance is an under-used form of charitable giving, its flexibility allows almost anyone to make a meaningful contribution. Possibilities include:
- Give a Percentage – A percentage of your life insurance policy may be allotted as a gift to TPCS.
- Give a Paid-Up Policy- Many life insurance policy holders have policies that have outlived their original purpose. Policies, such as those for a college education, those insuring a business, or those protecting a mortgage can be ideal gifts to charitable organizations like TPCS. As an added benefit, the donor can receive charitable income tax deduction benefits for the replacement value of the policy.
- Buy a New Policy- Donors that would like to make a much larger gift than is otherwise affordable may opt to purchase a life insurance policy and name TPCS as owner and beneficiary. The future premiums paid are deductible as cash contributions.
- Buy Insurance to Replace a Bequest – Some donors may have assets they wish to bequeath to TPCS but would like to make a more immediate contribution. They may replace their assets by purchasing a life insurance policy for an amount equal to their value. By doing so they have the satisfaction of giving now and receiving the tax deduction now, when they need it the most. The beneficiaries still receive the same amount.
- Add a Beneficiary – Some donors may opt to add TPCS as a secondary or final beneficiary on a new or existing policy. Almost any one can do this, regardless of their financial circumstances. By doing so, if the first beneficiary(ies) predeceases you, TPCS becomes the new beneficiary. Because it’s not definite, the donor does not receive any income tax benefits from such a gift; but if TPCS does receive any funds, they will be deducted from federal estate taxes.
Retirement Assets
Gifts of retirement assets can be ideal because they save heirs undue tax burdens and enable donors the accomplishment of their charitable objectives. Depending on the amount of the wealth transfer, bequeathing retirement assets to your heirs can leave them with taxable assets. This means that their inheritance is considerably less than the original amount once the taxes due on the assets are paid. However, TPCS would not have to pay income taxes on assets bequeathed to the organization. By bequeathing your assets to TPCS, you will be able to make a larger gift and possibly save other nontaxable assets for your heirs.
Another possibility for donors is setting up a charitable trust of retirement assets, naming TPCS as the last beneficiary. Such a trust would enable you to provide payments for your spouse or another loved one for the rest of his/her life. Following the death of your primary beneficiary(ies), you would simply transfer your remaining assets to TPCS. These assets can be used by TPCS to continue our work. There are estate or income taxes imposed on the assets at the time of the gift.
This information is not intended as specific legal advice. Consult your attorney when considering any legal matter. State laws which govern wills and contracts vary and are subject to change.
