A charitable bequest is one of the easiest ways to make a lasting impact on the Pasadena Senior Center. The benefits of leaving a gift to the Center through a bequest include:
- Maintaining control of your assets during your lifetime
- Having the flexibility to modify your bequest if your circumstances change
- Reducing your taxable estate
- Making a significant gift with opportunity to designate how it should be used
- Knowing that you can continue to help older adults after your passing
Will or Revocable Trust
A bequest can be made in your will or trust that then directs a gift to the Pasadena Senior Center upon your passing. Bequests can be made in several ways:
- Percentage of your estate
- Specific dollar amount or asset
- Balance or residue of your estate after your family has been provided for
A bequest made through a will or revocable trust allows you to maintain control over your assets during your lifetime and then provide a charitable gift that is exempt from federal estate tax upon your passing. Adding bequest language or a simple codicil to your current will or trust is easy. Contact your estate planning attorney to discuss your specific situation.
A bequest of retirement assets is another easy way to make a gift to the Pasadena Senior Center. Assets include those earned through a 401(k), 403(b) or Keogh Plan, a traditional IRA, and/or a profit sharing pension plan.
Upon your passing, the value of your retirement assets may be significantly diminished by estate and income taxes if bequeathed directly to individuals. By designating a qualified charity as the beneficiary of your retirement assets (or a portion thereof), the full value of the asset is transferred -- tax-free -- to that charity upon your passing. Your estate then receives an estate tax charitable deduction, thus reducing the size of your taxable estate.
You can designate the Pasadena Senior Center as a beneficiary of your retirement assets using a Beneficiary Designation Form. Check with your retirement plan’s custodian for more information or to receive a form.
New Charitable Giving Rules for Traditional IRA’s
Congress has now passed legislation that permanently allows individuals who have reached the age of 70 ½ and older to make charitable gifts from their traditional IRA account directly to charities without being subject to federal taxes. Up to $100,000 can be given each year, and the amount of the gift can be applied against an individual’s Required Minimum Distribution (RMD). Although the gift itself does not qualify for a charitable deduction, the gift does lower the individual’s adjusted gross income, resulting in a tax savings and satisfying his or her RMD. Consult with your tax advisor or financial planner for more information.
Life Insurance Policies
Designate the Pasadena Senior Center as the beneficiary of your life insurance policy. The policy will be included in your taxable estate upon your passing, but your estate will benefit from an estate tax charitable deduction for the value of your gift.
You can also name the Pasadena Senior Center as a beneficiary of your Certificate of Deposit (CD) and other Bank and/or Brokerage accounts.
TRANSFER OF APPRECIATED SECURITIES
We also welcome the transfer of appreciated stocks, bonds, and mutual funds. The current value of your appreciated securities must be greater than their original cost, and they must have been purchased more than one year ago. A tax deduction may be taken for full fair market value of the securities. Donating appreciated securities directly to the Pasadena Senior Center may allow you to avoid paying tax on the capital gains of the investment. See how your gift of appreciated securities can provide you with a tax savings and further the mission of the Pasadena Senior Center.
Kindly notify us of your intent to leave a charitable bequest to the Pasadena Senior Center so that we can formally recognize you for your support.
The Pasadena Senior Center is a tax-exempt, 501(c)(3) non-profit organization located at 85 East Holly Street, Pasadena, CA 91103.
Taxpayer ID# 95-2085393.
All inquiries should be directed to:
Pam Kaye, Associate Director of Development
Direct Line: (626) 685-6756
The Pasadena Senior Center does not provide tax or legal advice, nor is the information on our website intended to be used or relied upon by the reader to avoid federal tax penalties.