How to include SBHS Alumni Association in your estate planning
Are you interested in giving the Santa Barbara HIgh School Alumni Association some or all of your assets while you are alive or upon your passing? Option 1: The best option is by using the irrevocable Trust. The assets you transfer in the name of Trust will become the property of the Trust, not yours, which means they can easily bypass the long probate process and remain untaxed. You can also set specific rules and conditions for asset distribution or administration. Just make sure to communicate with a representative from the organization beforehand to ensure your donation aligns with their needs and requirements. Option 2: A Charitable Rollover is a permanent provision that means a person whose age is 70.5 years or older can donate up to $100,000 per year from the Individual Retirement Accounts (IRAs) to the eligible charity organization without paying taxes. For married couples, the limit exceeds up to $200,000 ($100,000 for each spouse) per year. Once you’ve donated, you should get a written acknowledgment that includes the date, donation amount, and the benefits you get before filing tax returns. Option 3: A will is typically considered to distribute the estate to the family members. It can also be used to leave a charitable legacy (any assets) for an organization following a simple process. Simply contact your Last Will & Testament lawyer and request to include a bequest for the charity. A bequest means giving a gift of assets such as stocks, jewelry, or money up to $18,000 to a recipient. If you wish to give more, you may be subject to the Federal Gift Tax. Option 4: If you’ve stock that has grown in value, gifting it directly to a charity organization is the best way not only for charity but also for gaining tax advantages. To donate the stock, first contact the organization to find out whether they have a brokerage account or not (we do). Upon receiving the information on the brokerage account, you can proceed with the further steps. Contact the broker and tell them you want to donate your stock, and they’ll initiate the transfer process.