Securing the Future of Music
Consider Including the Da Camera Endowment Fund in your Estate Plan
Da Camera of Houston was created to address the concerns of a dwindling audience for classical music. Since Da Camera's inception, it has successfully touched the lives of an ever-expanding audience while broadening its repertoire to capture a new and more diverse following. By mixing various genres and creatively interweaving literature and visual art with music, Da Camera of Houston has acquired a reputation for leading the way with ingenious thematic ideas and innovative productions. From incorporating the passions of jazz to enveloping the intimacies of chamber music, Da Camera of Houston ignites an appreciation for the varied and rich destinations one can explore through music.
Your support of Da Camera of Houston's mission is instrumental in building a community where live music thrives. If you are in the process of creating an estate plan or updating your will, consider including a gift to the Da Camera Endowment Fund. The Da Camera Endowment Fund was incorporated to provide financial security to Da Camera of Houston and exclusively supports Da Camera's productions and programs.
If you do not presently have a will, now is the time to have one prepared. The security and peace of mind that come with having your estate plan in order is invaluable as well as the assurance that you and your loved ones are cared for according to your wishes. Below are a few important reasons to have an up-to-date estate plan:
- guardianship of children in the event something might happen to you and your spouse;
- reduction of administrative costs and time;
- proper allocation of assets pursuant to your wishes, rather than the court's;
- selection of a trusted individual to serve as the executor of your estate;
- minimization of federal income and estate tax consequences;
- consideration of life insurance and long-term health care insurance needs;
- power of attorney for healthcare and financial decisions in the event you become temporarily incapacitated;
- advanced directives for health care;
- succession planning and trusts for health care, living expenses, care of a loved one or educational purposes; and
- support of charitable organizations that are close to you and your family.
It is easy to include the Da Camera Endowment Fund in your estate plan by any of the following means:
Bequest in your Will
Gift of Appreciated Securities
Beneficiary designation in your IRA, 401(k) or 403(b)
Beneficiary to a Charitable Remainder Trust
Beneficiary to a Charitable Lead Trust
Gift of Life Insurance
Assignment of Royalty Interests or Copyright Interests
It is always important to consult your attorney or financial advisor before making a deferred gift to charity. In the event you already have a will, your attorney can draft a codicil (amendment) to your will to include a charitable bequest to the Da Camera Endowment Fund. Below are a few examples of the types of bequests that can be included in your will and the sample bequest language may be shared with your attorney:
A bequest in your will may take any of the following forms:
A general bequest is for a certain dollar amount of property, usually cash: "I give to the Da Camera Endowment Fund the sum of $20,000 . . ."
A specific bequest directs that Da Camera is to receive a specific piece of property: "I give to the Da Camera Endowment Fund 100 shares of XYZ stock . . ."
A residual bequest designates all or a portion of whatever remains after all debts and specific and general bequests have been paid: "I give to the Da Camera Endowment Fund ten percent (10%) of the rest, residue and remainder of my estate . . ."
A contingent bequest takes effect only under certain conditions: "In the event my wife does not survive me, I give to the Da Camera Endowment Fund the sum of $100,000 . . ."
Retirement Plans - One of the Best Assets to Consider Giving to Charity
You may want to think of your IRA, 401(k) or 403(b) first when giving to charity. IRAs and other similar retirement plans are taxed differently than most assets in your estate because they can be subject to both estate and income taxes. This potential "double-taxation" can result in the Internal Revenue Service receiving up to 70% of the funds remaining in your retirement plan at death. Your beneficiaries are responsible for paying the income tax due on the amount they receive with the exception of charities because they are tax-exempt. Consequently, if you are trying to decide which assets to give to family, friends and charity, naming a charity as a beneficiary to all or a portion of your retirement plan may be an attractive option. The ease of making such a gift is often overlooked. You merely need to request a "Change of Beneficiary" form from your plan administrator. In addition, you can adjust the amount of the gift at any time by requesting another form. Therefore, as your needs change this can be reflected in your philanthropic directives.
New Legislation Pertaining to Retirement Plans - Congress recently enacted the Pension Protection Act of 2006 which offers individuals an opportunity to make gifts from their IRAs and exclude the amount of their gifts from gross taxable income. To qualify a donor must be 70 1/2 years of age or older; transfers must be made directly from the IRA to qualified charities; gifts cannot exceed $100,000 per taxpayer per year; and gifts must be made outright (this excludes gifts to donor advised funds, supporting organizations, and life income gift vehicles such as charitable remainder trusts). This opportunity is only available in 2006 and 2007 and a charitable income tax deduction is not allowed. Please consult your tax advisor for additional information.
For more information without any obligation, contact Sarah Loudermilk at 713-524-7601 ext. 12 or via email: email@example.com. All inquiries are kept strictly confidential. The Da Camera Endowment Fund is a 501(c)(3) tax exempt organization and the Tax I.D. number is 76-0621130.
Please note: Da Camera of Houston does not provide legal or tax advice. Please consult your legal or financial advisor before you consider any of the above-mentioned estate planning options.