Planned Giving: The Legacy Circle

Example

Sue grew up attending The Nutcracker and then began taking her daughter when she was young. Now, Sue, her daughter and her granddaughter have a tradition of attending Ballet Austin’s production of The Nutcracker every year. In honor of this special tradition, Sue provided in her will that one third of her estate would be given to the Ballet Austin Foundation, ensuring the future of Ballet Austin and The Nutcracker.

Benefits to you:

• You have control of your assets during your lifetime.
• You can make modifications to your bequest.
• There is no limit on the estate tax deductions for your charitable bequest.

*Note: There is no minimum gift—we appreciate and accept all cash designations.

Example

Jane and John have stock worth $75,000 for which they originally paid $35,000.  They learn they can support the Ballet Austin Foundation by donating this stock to a charitable remainder trust. They defer the tax on the $40,000 capital gain and receive an income tax deduction this year for a portion of the amount contributed to the trust. They also receive annual payments for the rest of both their lives. The balance of the trust is donated to the Ballet Austin Foundation.

Benefits to You

• You receive an immediate income tax deduction for a portion of your contribution to the trust.
• You or your designated beneficiaries receive a predictable, stable income for life or a specified term.
• You defer payment of the capital gains tax on appreciated assets you donate that are sold.

Example

Mike establishes a lead trust, valued at $500,000, to benefit the Ballet Austin Foundation. The trust will pay the BAF an annual distribution of 5% of the trust’s value for 15 years, starting with an initial payment of $25,000. After 15 years, the remainder of the trust passes to Mike’s family.

Benefits to you:

• You transfer assets to a trust that makes fixed payments to the Ballet Austin Foundation for a specified term. When the trust ends, the principal goes to your chosen beneficiaries.
• The portion of the contribution benefitting the Ballet Austin Foundation is eligible for the gift tax charitable deduction, and the gift tax consequences can be reduced based on the structure of the annuity payments and the term of the trust.
• The contributed assets and their appreciation are removed for your taxable estate for estate tax purposes, providing you an opportunity to leverage your estate tax exemption to shelter assets expected to appreciate.

Example

Jennifer is employed with a company that offers a 401(k). She is thinking about ways to support Ballet Austin in the future and learned she can name the Ballet Austin Foundation as a beneficiary of her 401(k). After she retires, she will withdraw funds as needed for living expenses and can leave a portion or all of the remaining balance to the BAF upon her passing.

Benefits to you:

• You can continue to make withdrawals during your lifetime.
• You can change beneficiaries at any time.
• Unlike individual beneficiaries would, the Ballet Austin Foundation does not pay income tax on the retirement benefits it receives. Therefore, the retirement benefits passing to the Ballet Austin Foundation at your death avoid income taxation.  If you were planning to benefit Ballet Austin under your estate plan, doing so through your retirement benefits offers a tax-efficient way to accomplish this goal.

The Legacy Circle is a group of donors who are securing the future of Ballet Austin by making a gift to the Ballet Austin Foundation in their wills, revocable trusts or other planned giving instrument.

You become a member of The Legacy Circle upon notifying the Ballet Austin Foundation of your intention to make a gift in a will or other vehicle for planned giving by signing The Legacy Circle Letter of Intent.

Yes, you should always seek legal counsel in order to make sure that your intentions are clearly and accurately stated, and to avoid unnecessary expense and frustration to your family due to ambiguity in your documents. Although all circumstances are different and vary in levels of complexity, it could be as simple as asking your lawyer to add a codicil to your will or amendment to your revocable management trust. If you are unsure of exactly what you need to ask your lawyer, the Ballet Austin Foundation’s legal advisor, Derry Swanger, would be happy to have a complimentary confidential conversation to discuss your situation. Brooke Holmes can put you in touch with Derry.

Depending on the level of complexity associated with your own situation, you can expect to require 1-5 hours of your lawyer’s time to add the Ballet Austin Foundation to your will.

We always suggest that you seek legal counsel for any changes to your will, but if you would like to see some sample language for adding a gift in your will, please contact Brooke Holmes.

Yes, you can always change your will. Your Letter of Intent to the Ballet Austin Foundation is not binding.

We welcome the opportunity to retain a copy in our files, but it is not a requirement for membership in The Legacy Circle

Yes, either option is available and your lawyer should be able to explain to you the various options for including the Ballet Austin Foundation in your will.

There is no minimum gift—the Ballet Austin Foundation appreciates and will accept cash designations of any amount.

The funds you designate will go directly to the Ballet Austin Foundation account, which is managed by Fiducient. All donations in this account stay intact as the principal is never spent. The annual grant the Foundation gives to Ballet Austin is funded through the earnings on the account including interest, dividends and unrealized gains. As the account grows, the grant to Ballet Austin grows supporting Ballet Austin’s exceptional artistic programming, arts education, scholarships, and access for the entire Central Texas Community.

The names of the members of The Legacy Circle are listed in the Ballet Austin production programs and on our website. In addition, we honor the members of The Legacy Circle by displaying their names publicly at the Butler Dance Education Center.