Gift Planning

One of the simplest ways to make a gift to the Boston Symphony Orchestra is to include a contribution in your will or living trust. Bequests can be changed at any time (although you may also make your plans irrevocable) and can be for a specific asset or dollar amount, a percentage of what remains in your estate after your death, or contingent on other factors important to you.

In exchange for your gift of $10,000 or more, a gift annuity would produce fixed payments for life for you and/or another individual. These payments are based on the age(s) of the designated beneficiaries at the time of the gift and the size of your gift. At the end of the gift annuity contract (typically the death of the income beneficiary/ies), the funds are used by the BSO for one or more purposes agreed upon when the annuity was created.

Charitable remainder trusts are among the most versatile gift vehicles that pay income. You can receive income for life from the trust, and the BSO receives the remainder when the trust terminates. Moreover, charitable remainder trusts can be structured to pay either fixed or variable income. Other benefits include:

• Attractive income for life or term of up to 20 years
• An income tax charitable deduction equal to a portion of the gift amount
• No up-front capital gains tax if long-term appreciated property is donated

A lead trust is designated to pay income to the BSO for a term of years, after which the trust’s balance would pass to you or family members. When a lead trust is created for the future benefit of children or grandchildren, estate gift taxes can be reduced or even eliminated. Other benefits include:

• Annual payouts that support the BSO’s mission
• Significant reduction in gift and/or estate taxes
• Retention of assets in the family

By naming the BSO as an ultimate beneficiary of your IRA, or 401(K) or other qualified retirement plan, you can make a future gift while continuing to take required withdrawals during your lifetime. Remaining assets will then pass tax-free to the BSO.

Real estate gifts can provide transformative ways to support the BSO. Gifts of real estate can take many forms, including:

• Deeding all or a portion of a piece of real estate to the BSO before entertaining purchase offers
• Using debt-free real estate to fund a charitable remainder trust
• Transferring your home or farm to the BSO now, while retaining lifetime use of the property

Gifts of real estate are unique, and the BSO must evaluate each proposed gift on its own merits to ensure that the gift is mutually beneficial to you and to the BSO.

If you own a life insurance policy that you no longer need, it may provide a way to make a gift to the BSO. Naming the BSO as the beneficiary and owner of a paid-up life insurance policy generally entitles the donor to an income tax deduction for a portion of the policy’s value. In some cases, a paid-up policy could be used to establish a charitable remainder trust, paying income to you or others.

If you have an existing donor-advised fund, consider the option of adding the BSO as an account beneficiary. It is a simple and effective way to ensure that your recommendations are known.