The Olympic Club Foundation
30th Golf & Tennis Classic
and Grand Auction
May 17, 2010
Save the date and
register online today »
The Olympic Club Foundation
30th Golf & Tennis Classic
and Grand Auction
May 17, 2010
Save the date and
register online today »
In estate planning, you first need to think about yourself, your family and loved ones. Once these needs have been addressed, the Internal Revenue Code provides a number of opportunities for you to benefit the nonprofit institutions which you support. The money you divert from flowing to the government in taxes can instead flow to these charitable causes, such as the Olympic Club Foundation. Major gifts to the Foundation from Olympians and others have significantly increased its endowment over the years.
If you have an interest in supporting the Olympic Club Foundation, the Foundation is willing to help you through this process, working with you and your estate planners. When you are ready, contact us to set up a time to meet and discuss your particular situation. If you have specific ideas as to what Foundation activities you would like to support, such as the Athletes Fund, for example, or wish to make a gift directed to a specific charitable purpose which falls within the Foundation's guidelines, we can discuss this also in more detail. Named gifts are also possible. First, however, please take a moment to read the following brief examples of charitable giving strategies. While this is not a compete list, it should give you some ideas for consideration.
Many donors elect to provide support in the form of a bequest, effective at the donor's death and specified in a will or trust agreement. Such charitable bequests are fully deductible for federal estate tax purposes. The structure of a bequest can take many shapes. Frequently, it is a specific figure or asset. Alternatively, it can be a residual estate - or percentage thereof - after non-charitable bequests to family members are fulfilled. Illiquid assets in an estate - art objects, antiques, real estate, rare books - often are troublesome because high valuations may cause executors to sell these items at depressed prices in order to pay estate taxes. Conveying illiquid assets to the Foundation by bequest eliminates this problem. Your estate planner can draw up wills or trusts with bequests that effectively shelter your assets.
There are two principal ways a donor can use life insurance to support the Foundation. One is to establish a new policy with the Foundation as beneficiary. The other is to transfer an existing policy from its original beneficiary to the Foundation when its original purpose is no longer necessary. Both methods are cost-effective and tax-efficient. Post-transfer premium payments are tax deductible.
Designating the Foundation as a beneficiary of a qualified savings and investment plan such as an IRA, 401k or Keogh plan is among the simpler strategies for reducing income and estate taxes upon death. For donors in higher tax brackets, combined taxes can significantly reduce the market value of these assets upon transfer. The gift can be for either the entire balance or for a specific portion.
Several Olympians have asked us if it is possible to make a gift on a deferred basis so that a spouse or child can receive the benefit of income from an asset for a period of time prior to transfer to the Foundation. The general category for such a gift is the Charitable Remainder Trust.
Charitable Remainder Trusts, while irrevocable, offer a superb way to meet family planning goals and at the same time provide an opportunity to support the Olympic Club Foundation in the future. You can create such a trust during your lifetime or upon your death by transferring assets to a trustee, who under the terms of the trust instrument, invests and manages those assets for the benefit of your beneficiaries.
With a Charitable Remainder Trust, you irrevocably transfer cash, securities, or property to your Trust. The Trust pays you (or your designated beneficiaries) a payout which represents a percentage of the trust assets. The percentage can be a "unitrust" payout or an "annuity" payout. With a Unitrust payout, the trust reflects the market, so your income is variable. Because income increases with trust growth, the Unitrust can provide an excellent hedge against inflation. With an Annuity payout, the payout is based on the value of the assets at the time the annuity trust is established, and it remains fixed for the term of the agreement. At the termination of the Trust (either at the death of income beneficiaries or after a specified term of years), the remainder is transferred to the Olympic Club Foundation as your gift.
When you create a Charitable Remainder Trust, you are entitled to a significant income tax deduction generally equal to the value of the property you contribute less the value of the Unitrust or Annuity payouts to be made to you or to your beneficiaries. The value of the Unitrust or Annuity payouts depends upon the expected term of the trust, the percentage to be paid, and the fair market value of the assets used to fund the trust. The value of the deduction you may claim is limited to a percentage of your Adjusted Gross Income (AGI).
When the Unitrust or Annuity interest ends, the trust terminates and the principal is available for the use of the Olympic Club Foundation.
A Charitable Lead Trust can be described as a mirror image of the Charitable Remainder Trust. During the term of the Charitable Lead Trust, an annuity or unitrust amount is paid to the charity, and upon the expiration of the term the remaining assets of the trust are paid over to the non-charitable remaindermen - usually the donor's children. Upon funding a Charitable Lead Trust, the donor generally does not receive an income tax deduction. However, the amount of the gift to children is reduced for gift tax purposes by the value of the annuity or unitrust interest given to the charity. The longer the trust term, and the higher its payout rate, the greater the gift tax savings. Further, future appreciation on the contributed assets is not subject to further gift or estate taxes when the trust terminates. This is an excellent strategy to enable a Trustor to save on gift and estate taxes while benefiting the Olympic Club Foundation.
The giving strategy called "Life Estate" allows the donor to transfer ownership of real estate - a home or even a second home (including condominiums and cooperatives) - to the Foundation while retaining use of the real estate for the life of the donor and spouse. The benefit is that an immediate income tax deduction is earned, which would not be the case if the gift were made in the form of a bequest.
The Olympic Club Foundation "Legacy Circle" was formed to recognize and thank those who have included the Foundation in their estate plans through a bequest, life income plan, or other type of planned gift.
The Foundation would be very grateful for your support which strengthens our Foundation and ensure that we will be able to continue to provide support for sports programs for young athletes, many of whom are disadvantaged.
When you step forward, others are encouraged to do the same.
When you make a planned gift, please download and complete the attached form and send it to: The Olympic Club Foundation, P. O. Box 280608, San Francisco, CA 94128 or complete the online form. When you notify us of your gift, we will enroll you in our Legacy Circle. As a member, you will be given your choice of a recognition gift and invited, together with other members, to our annual special recognition event for planned giving donors. In addition, unless you prefer to remain anonymous, you will be recognized in publications such as the Olympian magazine, the Foundation's newsletter, our display cases downtown and at Lakeside, and on our website, www.olyclubfdn.org.
Although not a requirement, should you name the Foundation in a planned gift, we would welcome a copy of the legal document that accompanies your gift. This can make estate administration easier when you gift is received and ensure that it will be put to the intended purpose(s). However, this is entirely your option.
Should you require assistance is determining the best planned giving technique for your individual circumstances, the Foundation can refer you to one of our experts for a free consultation. Of course, your professional advisors are welcome to be involved in these discussions.
Thank you for considering including the Olympic Club Foundation in your estate plan. If you have any questions, please contact us at 415-345-5230 and we will put you in touch with the person with the appropriate expertise to respond to your questions.
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