Gift Planning FAQs

This page includes the most common questions regarding estate gift planning.

If you would like to know how your Estate Planning can help Lake Avenue Community Foundation, please contact Greg Helton, Development Director at 626.817.4508 or email at gregh@lakeave.org

Thank you.

Questions

  1. Do I really need an Attorney to draft my will? Why can’t I just use the Internet or buy a form and fill in the blanks?
  2. If I already have a will do I need to create a whole new one?
  3. Tell me, what is a Bequest gift?
  4. Can I make a Bequest to support/underwrite a specific Lake Avenue Community Foundation program?
  5. What are the Tax Advantages of a Charitable Bequest to my Estate?
  6. What are some other Charitable options that you may wish to consider?

  1. Do I really need an Attorney to draft my will? Why can’t I just use the Internet or buy a form and fill in the blanks?

    Your will is one of the most important document you will ever sign. It is your testimony about what matters most in your life and your plan for giving away your most valuable assets. Lake Avenue Community Foundation really encourages you to plan for your family, friends and others, and then to prayerfully consider gifts to the Foundation. Getting Legal Counsel is very important for the preparation of your will. Your attorney will help clarify your intentions, eliminate confusion for your beneficiaries, and the cost is surprisingly affordable.

  2. If I already have a will do I need to create a whole new one?

    No! A new will is not necessary. Sometimes, all that is needed is to add a Codicil to your will. However, if it has been a few years since you have made your will, then you should consider reviewing and or updating it. This is especially true if any of the following events have recently occurred in your life:

    • A marriage or remarriage
    • Birth or death of beneficiaries
    • When there has been a significant change in your assets
    • When there has been a substantial change in your assets
    • When there have been significant changes in Tax Laws affecting estate gifts

  3. Tell me, what is a Bequest gift?

    A bequest is a gift made in a will to a named beneficiary. It may provide a specific dollar amount, a percentage of your estate or a specific asset. A bequest made to Lake Avenue Community Foundation may be in the form of cash, securities, real estate or other tangible property. A bequest may be made in the form of an Outright Bequest, a Residual Bequest, or a Contingent Bequest. Following is some helpful wording for making a bequest to Lake Avenue Community Foundation.

    • Outright Bequest: This is one where you give a specified dollar amount or a specified asset such as stocks, bonds, real estate or other tangible property. Your attorney may wish to use wording: “I give, devise, and bequeath to Lake Avenue Community Foundation, 712 East Villa Street, Pasadena, CA 91101 the sum of $______________ to be used for its general purposes.” Also, instead of a specific dollar amount you can indicate a percentage (____%) of your estate, or specifically describe an asset to be given.
    • Residual Bequest: This is one in which you give all or a percentage of your estate to Lake Avenue Community Foundation, 712 East Villa Street, Pasadena, CA 91101 after all specified amounts bequeathed to your other beneficiaries are distributed and estate related expenses are paid. “I give, devise, and bequeath to Lake Avenue Community Foundation, 712 East Villa Street, Pasadena, CA 91101 _____% of the residue of my estate used for its general purposes.”
    • Contingent Bequest: This is one made on the condition that a certain event must occur before distribution to the contingent beneficiary. For example, the primary beneficiary predeceases you. “In the event that _______________________ predeceases me, I give, devise, and bequeath to Lake Avenue Community Foundation, 712 East Villa Street, Pasadena, CA 91101 the sum of $__________ to be used for its general purposes.”

  4. Can I make a Bequest to support/underwrite a specific Lake Avenue Community Foundation program?

    Yes! You may designate your bequest to support a purpose or a special program that reflects your personal or professional interest. Such requests do require additional language so it is recommended that your contact our office to ensure that your gift will be used in accordance with your wishes.

  5. What are the Tax Advantages of a Charitable Bequest to my Estate?

    Only your tax advisor can accurately determine your estate tax liabilities. However, in general, most charitable gifts made through your will are exempt from estate tax. In addition, certain assets that may be subject to double taxation such as 401K and IRA Retirement Accounts may be the most advantageous gifts you can make. Since retirement finds are often tax deferred that means both income tax and estate taxes are due. Charitable organizations like Lake Avenue Community Foundation are tax-exempt and not liable for these unpaid taxes.

  6. What are some other Charitable options that you may wish to consider?

    Lake Avenue Community Foundation recognizes that many of our friends have created a Living Trust as the center of their estate plan. As with a will, you can use your Living Trust to make outright, residual or contingent gifts to Lake Avenue Community Foundation. Still there are other friends that may wish to consider making Lake Avenue Community Foundation the primary contingent beneficiary on a Life Insurance policy or IRA’s, Retirement accounts, Pooled Income Fund (a no cost fund “charitable mutual fund” established and managed by a charity), Charitable Lead Trust (a time fixed trust set for a number of years) and the Bargain Sale of Property to the Foundation. This is where an asset is sold to the Foundation for less than its fair market value, the donor receives a charitable deduction for the “Bargain” portion of the gift, avoidance of capital gains on the bargain portion of the gift and the Foundation receives a substantial gift that can be kept or sold.

    All of these options are easy to accomplish so consult with your attorney and tax advisor today and look at all new ways to help Lake Avenue Community Foundation for years to come.