A charitable gift by will or living trust is a popular method of giving that enables you to achieve your financial goals and benefit Caltech. No other planned gift is as simple to implement or as easy to change.
A bequest may be right for you if:
- You want the flexibility to change your mind.
- You want continued access to your gift assets, should you need them.
- A current tax deduction for your gift is not important to you.
Remembering Caltech in your will is a wonderful way for you to make a lasting gift. Large or small, your bequest will make an important contribution to our long-term strength and our ability to carry out path-breaking teaching and research.
But what if you don’t have a will? Don’t worry, you are not alone. Most Americans don’t have a will.
If you die without a will, the laws of your state will decide how your estate is divided up. Typically, this means your estate will be divided among your closest surviving family members according to a formula, and none of your estate will go to Caltech or any other charity.
If you wish to have a say in how your estate is distributed, you must have a will. We encourage you to work with an experienced attorney to create a will that accomplishes your goals for your estate.
Ways You Can Define a Charitable Gift in Your Estate Plan
There are several ways to define the amount of your gift to Caltech. They are:
- A gift of a particular amount of money. For example, you give $25,000.
- A gift of a specific item or items. For example, you give 1,000 shares of stock in ABC Corporation.
- A gift that will be made only if one or more conditions are met. For example, you give $25,000 provided we still offer a particular program or service.
- A gift that will be made from the remainder of your estate once all other bequests, debts, and taxes have been paid. For example, you give 25 percent of the remainder of your estate. Often called a “residuary bequest,” this approach assures that your family will be taken care of before your estate makes a bequest to us.
Ways to Specify How We May Use Your Bequest
You have several options for telling Caltech how we may use your bequest, once we receive it. They are:
- An unrestricted bequest: This can be the most useful kind of gift because it allows Caltech to put your gift to the best possible use at the time we receive it.
- A restricted bequest: This is a gift for a specific use, such as a special project or program that is important to you. It is best for you to consult with us before placing restrictions your bequest to make sure we can carry out your wishes.
- An endowed bequest: This approach assures that your gift will continue to benefit Caltech for generations to come; contact us to learn more. An endowed bequest can be unrestricted or restricted.
- An honorary bequest: This is a gift made in honor of someone else. Any form of bequest can also be an honorary bequest.
Make Sure We Can Carry Out Your Wishes
It is very important that your bequest be accurately and clearly described in your estate plan so that we can carry out your wishes as you intended. We are happy to consult with you regarding the terms of your bequest to make sure that Caltech will be able to fulfill your intentions.
To avoid any possible question that your bequest is to our organization, be sure to include our full legal name in your bequest.
Legal name: California Institute of Technology, a charitable, tax-exempt organization located in Pasadena, California. Federal Tax Identification Number: 95-1643307
We are happy to provide you with sample bequest language to assist you and your attorney. Please let us know if you have included Caltech in your estate plans. We would welcome the opportunity to thank you for your thoughtful gift and to make you a member of our Torchbearers legacy society.
You have complete flexibility to change your bequest at any time. If circumstances change in a way that makes you want to revise your gift to us, you can.
Because your bequest is revocable, you do not receive an income tax deduction when you create it. Rather, your estate will receive an estate tax deduction for the full value of your bequest in the year it is made. Depending on a variety of factors, including the size of your estate and estate tax law at the time your estate is settled, this deduction may or may not save your estate substantial estate taxes.
In addition to adding bequest language to your will, here are a few other simple ways for you to make a bequest to us:
- Make Caltech a designated beneficiary of a life insurance policy.
- Make Caltech a designated beneficiary of a retirement plan.
- Make Caltech a designated beneficiary of savings bonds.
- Instruct your bank to “pay on death” to Caltech some or all of a specific bank account.
- Instruct your brokerage firm to “transfer on death” to Caltech some or all of a specific brokerage account.
Please let us know if you have included Caltech in your estate plans. We would welcome the opportunity to thank you for your thoughtful gift and to make you a member of our Torchbearers legacy society.
Catherine Hanney a widow, has been a supporter of Caltech for many years. Catherine is in good health now, but does not want to be a financial burden to her children should she require expensive health care in the future.
Caltech is one of two charities to which she has been most dedicated. She would like to make a lasting gift to each of them in memory of her husband. After discussing her options with her estate planning advisor, she decides to create a residuary bequest in her will for each of her two favorite charities. Each charity will receive 50% of the remainder of her estate after all other obligations, such as bequests to her children and grandchildren and taxes, have been taken care of.
- Catherine’s assets will remain available to her should she need them.
- The revocable nature of her gift will minimize the possibility that she will ever need financial help from her children.
- If her estate is worth what she expects when it is settled, she will be able to provide generous legacy gifts to the two charities that have meant the most to her and her late husband.