A Gift for Generations to Come
A gift from your estate provides lasting music education for children and adults. There are many ways to leave a musical legacy depending on your goals.
Naming UVMC as the beneficiary of a will, a trust, a retirement fund or life insurance policy, especially paid-up insurance policies that are no longer needed.
Sample Bequest Language
I give [the sum of $________ or ________ percentage] of my estate to The Upper Valley Music Center, a New Hampshire not-for-profit 501 (c) 3 tax exempt organization having a principal place of business at 8 South Park Street, Lebanon, NH 03766, federal tax ID #03-0345579, for its general purposes.
Gifts from a Traditional IRA
Effective December 2015, starting at age 70-1/2 you can make gifts (annual or capital) by rolling over funds directly from your IRA to The Upper Valley Music Center (UVMC). Such gifts do not create a taxable event for the donor, and help to satisfy the annual RMD (required minimum distribution). The annual cap for these types of rollovers is $100,000.
At death a traditional IRA is viewed by the IRS as Income in Respect to Decedent (IRD). As such it may be subject to dual taxation (both income and estate taxes). You can avoid this by making UVMC the beneficiary of all or a part of your IRA or 401K.
Life Income Gifts
These types of arrangements offer you a way to make an eventual gift and to receive income in the meantime. They offer an immediate income tax deduction as well as a stream of payments to you for your life (or for your and your spouse’s lives).
A Charitable Remainder Unitrust (CRUT) needs a lawyer’s involvement to craft a document that becomes a legal, tax paying entity. The advantages are that you receive a fixed amount for life, after which UVMC receives the remaining principle. CRUT’s can be funded with illiquid assets (real property for instance, subject to certain restrictions).
A Charitable Lead Trust (CLT) is a way to “park” money for a number of years allowing UVMC to use a certain amount (or percentage) annually. Sophisticated donors often use a CLT like a pledge agreement. At the end of a fixed term of years, the corpus is returned. For many a CLT is a tax efficient way to move money to the next generation while making a charitable gift.
Tangible Personal Property
Donations to UVMC in whole or in part including art or other collectibles and partnership interests. Note that special IRS rules will apply.
Real Property (Real Estate)
Retained Life Estate: Donate the deed to real property now, receive a large tax deduction for your donation and retain the right to live in the property for life.
Donate either all or a partial interest in a property prior to signing a purchase and sale agreement; receive a tax deduction and avoid capital gain tax exposure.
Upper Valley Music Center’s Address and Tax ID
Upper Valley Music Center
P.O. Box 826
Lebanon, NH 03766
Tax ID #: 03-0345579