Types of Planned Gifts
Types of Planned Gifts
One of the easiest ways to make a planned gift is through a bequest in your will or trust specifying a gift to Opera Philadelphia, which can be for a specific dollar amount, a percentage of your estate, or a certain piece of property.*
Beneficiary Designation: Retirement Plan and Life Insurance Policy
You may make a significant planned gift with minimal legal paperwork by making Opera Philadelphia the beneficiary of a life insurance policy or a retirement account—IRA, 401(k), 403(b)—often by completing a one-page form available from your account provider. Retirement plans are among the most highly taxed assets one can hold. By naming Opera Philadelphia as the beneficiary of your retirement plan, the funds remaining upon your death are not taxed and your loved ones have no hidden income tax liability. Similarly, by naming Opera Philadelphia as the sole or partial beneficiary of your fully-paid life insurance policy, you may be able to avoid the estate tax on the proceeds.*
IRA Charitable Rollover Gifts
An IRA Charitable Rollover provides you with an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate. To qualify, you must be age 70½ or older at the time of gift and transfers must be made directly from a traditional IRA account by your IRA administrator to Opera Philadelphia. Funds that are withdrawn by you and then contributed do not qualify. Gifts from 401(k), 403(b), SEP and other plans are not qualified charitable distributions. Your gift of up to $100,000, per spouse per year, counts toward your required minimum distribution (RMD) for the year from your IRA*.
Charitable Remainder Trusts
A charitable remainder trust allows you to make a gift to Opera Philadelphia while continuing to receive the interest and earnings on your investment during your lifetime and receiving a substantial charitable income tax deduction. You can choose either a fixed income or a set percentage of the value of the trust, which is set annually. A charitable remainder trust may allow you to avoid capital gains tax on your donated assets and you will receive a tax deduction for a portion of your gift. The trust will provide you income for life while contributing to the Opera in the future; when the trust is terminated, the remainder will pass to Opera Philadelphia.*
Life Reserved Agreement of Real Estate
This legal arrangement gives your home to Opera Philadelphia now, and allows you to continue living in it while providing you with substantial tax savings. You deed your home to Opera Philadelphia. The deed will include a provision that gives you the right to use your home for the rest of your life, while you continue to provide for the maintenance, insurance and taxes on the property.*
Charitable Lead Trusts
A charitable lead trust is the opposite of a charitable remainder trust. It gives Opera Philadelphia income for a set number of years but retains the principal for you or your estate. A charitable lead trust is especially helpful to you if you have a large estate and are concerned about federal gift and estate taxes. Removed from your estate, assets placed in a lead trust can be passed to loved ones exempt of these taxes.*
For information about making a planned gift, including information about membership in the Legato Society, contact Michael Bolton, Individual and Planned Giving Officer, at 215.893.5927 or email [email protected].
* Please consult your financial and/or legal advisors to determine which type of gift is best for you and for legal requirements regarding these gifts.