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Consider the following ways to arrange your estate plan to include The Old Globe. Gifts of cash, personal property, securities, or real estate are the most direct ways to support the Globe for generations to come.

Click each item below for more information:

  • Bequests made through your will, a living trust, or a life insurance policy can designate The Old Globe as a beneficiary after your passing.
  • Charitable gift annuities transfer cash, securities, or other assets to the Globe and, in turn, will pay a fixed sum and provide a tax deduction to one or two designated individuals for life.
  • Individual retirement accounts can benefit the Globe without incurring multiple estate and income taxes.
  • Charitable remainder trusts provide income and tax deductions to you for a set period of time and earmark the remainder of the trust to the Globe.
  • Charitable lead trusts reduce taxable income by donating a portion of the trust’s income to the Globe and then transferring the remainder to the beneficiaries.
  • Life insurance policy donations.
  • Donor-advised funds are a giving vehicle established at a public charity.
  • Life estates allow you to deed your home to the Globe while enjoying living in your home during your lifetime.

Read on for more information about ways to make a legacy gift.

Bequests

By naming The Old Globe as a beneficiary of your estate by a will, trust, or any other instrument, your bequest to The Old Globe stays in your control during your lifetime, and your gift will be distributed to the theatre upon your passing. If the gift is revocable, you may change it at any time. An irrevocable gift will need the attention of an attorney and proper paperwork. You may receive estate-tax charitable deductions and/or retain life use and control of your property and assets.

Charitable Gift Annuity (CGA) and Deferred Gift Annuity

A charitable gift annuity is a contract between you and your chosen beneficiary. You may donate cash, securities, or other assets and receive a charitable tax deduction up front. The beneficiary will invest the funds and return some of it to you in fixed payments for the rest of your life. Donors normally contribute a minimum of $10,000 to $25,000 and are at least age 65 to begin receiving payments. You may elect to start payments immediately or later. The older you are, the higher the payout rate. You can also choose a reduced payment over two lives instead of one, so the income stream would continue until the second person died.You may deduct the part of your donation that will not be returned to you in annuity payments. The deduction is calculated by taking the full amount of your gift and subtracting the present value of all the payments you are expected to receive during your lifetime. If you are donating cash, part of your payments each year will be a tax-free return of principal, and the rest will be subject to ordinary income tax. The Old Globe arranges with the San Diego Foundation to secure CGA’s and deferred gift annuities.

Retirement Accounts and IRA Charitable Rollovers

By naming The Old Globe as a beneficiary of a retirement account or IRA charitable rollover, you may receive fixed income for life and receive the benefit of tax savings from a charitable deduction. You may pay fewer taxes as a result of your planned gift, and reduce required minimum distribution. It is easy to contact your IRA administrator and request a direct transfer from your IRA to The Old Globe at any time. You will not experience a tax liability from the required minimum distribution, which if, very high, may have a significant tax liability.

Charitable Remainder Trust (CRT)

A charitable remainder trust (CRT) is an irrevocable trust that generates a potential income stream for you, as the donor to the CRT, or any beneficiary you would select. This charitable-giving strategy generates income and enables you to pursue your philanthropic goals while also helping provide for living expenses. Charitable trusts can offer flexibility and some control over your intended charitable beneficiaries as well as lifetime income, thereby helping with retirement, estate planning, and tax management. A CRT is a “split interest” giving vehicle that allows you to make contributions to the trust and be eligible for a partial tax deduction, based on the CRT’s assets that will pass to charitable beneficiaries. You can name yourself or someone else to receive a potential income stream for a term of years, no more than 20, or for the life of one or more non-charitable beneficiaries, and then name one or more charities to receive the remainder of the donated assets.

There are two main types of charitable remainder trusts:

  • Charitable remainder annuity trusts (CRATs) distribute a fixed annuity amount each year, and additional contributions are not allowed.
  • Charitable remainder unitrusts (CRUTs) distribute a fixed percentage based on the balance of the trust assets (revalued annually), and additional contributions can be made.

Contributions to CRATs and CRUTs are an irrevocable transfer of cash or property, and both are required to distribute a portion of income or principal, to either the donor or another beneficiary. At the end of the specified lifetime or term for the income interest, the remaining trust assets are distributed to one or more charitable remainder beneficiaries.

Charitable Lead Trust (CLT)

A charitable lead trust is an irrevocable trust designed to provide financial support to one or more charities for a period of time, with the remaining assets eventually going to family members or other beneficiaries.

Charitable lead trusts are often considered the inverse of a charitable remainder trust. Charitable lead trusts operate for a set term, which could be the life of one or more individuals, and payments are made to one or more designated charitable beneficiaries for that time period. After the end of the trust term, the remainder of the trust is distributed to non-charitable beneficiaries, such as family members. A charitable remainder trust, in contrast, can provide a stream of income for family members for the term of the trust before the remaining assets are transferred to one or more charitable-organization beneficiaries.

A charitable lead trust can be funded either during the lifetime of the individual creating the trust or by will. It is a strategy most frequently used by the charitably inclined for estate or gift-tax planning purposes. It can potentially provide benefits such as income tax deductions or estate or gift-tax savings on assets ultimately passed to the individuals designated as remainder beneficiaries. At the same time, the trust distributes regular payments to benefit a preferred charity or charities during the term of the trust.

You can use the following types of assets to fund a charitable lead trust:

  • Cash
  • Publicly traded securities*
  • Some types of closely held stock*
  • Real estate*
  • Certain other complex assets*

*Assets may need to be sold or coupled with a cash donation to ensure the trust has adequate resources to disburse the required payments. There may also be tax consequences.

There are several notes one must consider regarding a charitable lead trust. It is not tax-exempt, and trust income is taxed like the income of any other complex or grantor trust. It does require legal setup and likely ongoing maintenance costs. Careful planning is required to ensure the trust can make its required payments during the trust term, and the trust is irrevocable.

Key benefits include the fact that CLT reduces estate taxes, as your estate will be eligible for an estate tax charitable deduction for the value of the interest paid to the charity. This may not only reduce the amount of tax your estate has to pay upon your death, but it may also preserve wealth for your heirs. It may also reduce gift taxes. If you make a contribution to a non-grantor charitable lead trust during your lifetime, you may be eligible for a gift-tax charitable deduction, based on the present value of the interest going to the charity. However, if the remainder beneficiary of a charitable lead trust is someone other than yourself, then you might be subject to gift taxes on the value of the remainder interest. It is important to note, however, that it may be possible to structure the specific terms of the trust, such as length of term and payout percentage, in a way that could potentially eliminate gift taxes on the remainder amount passing to the end beneficiary.

Life Insurance Policy Donation

If you own a life insurance policy and it is no longer needed as determined when you created it, you may receive an income tax deduction upon donation without making a cash contribution. You may designate The Old Globe as the beneficiary of the policy, or you may name the theatre as the owner of the life insurance policy. Upon donation you may receive an estate-tax charitable deduction on your donated policy and receive current charitable income tax deduction with tax savings for up to six years.

Donor-Advised Funds

A donor-advised fund, or DAF, is a giving vehicle established at a public charity. It allows donors to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from the fund over time. One of the main benefits of a donor-advised fund is that it allows individuals with philanthropic intent to have their charitable assets professionally managed and distributed to desired causes at a fraction of the cost of a private foundation. But, lower cost is only one of many benefits. The Old Globe works with the San Diego Foundation and the Jewish Federation of San Diego very closely and can help you learn more about creating your own donor-advised fund.

Pair a charitable lead trust with a donor-advised fund to maximize your giving.

Depending on the type of charitable lead trust established, changing charitable beneficiaries may be difficult or impermissible. Many donors wish to preserve a greater level of flexibility without having to amend the trust in the event of a desired change in charitable organizations. A donor-advised fund is a dedicated account for the sole purpose of supporting charitable organizations you care about. If you name a charity sponsoring a donor-advised fund program as the lead beneficiary of a charitable lead trust, you can retain greater flexibility over which charities ultimately benefit. How it works: the donor-advised fund will receive payments from the trust. Then, you can recommend grants from the donor-advised fund balance to support the charities of your choice. At the same time, you retain the benefits of the charitable lead trust in passing assets to your loved ones.