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The Legacy Circle - Planned Giving

The Legacy Circle invites donors who declare an interest in the future of Ballet Austin by including the Ballet Austin Foundation in their wills, insurance, charitable remainder or charitable lead gifts. The Ballet Austin Foundation is extremely grateful to these individuals as their generosity and foresight will enable Ballet Austin to maintain its growth and stability, enriching the lives of future generations.

For information on The Legacy Circle Benefits, click here.

Planned Giving Opportunities

Wills and Bequests - For a list of FAQs, please click here.

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 The Nutcracker every year.  In honor of this special tradition, Sue provided in her will that one third of her cash estate 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.
  • No upper limit on estate tax deductions for your charitable bequest.

Plan now for the future and name the Ballet Austin Foundation in your will or revocable trust.

Life Insurance

Example
John owns a life insurance policy he no longer needs.  He learns that if he transfers ownership to the Ballet Austin Foundation, he can deduct the cash value of the policy now as well as leave a generous gift to the Ballet Austin Foundation in the future.

Benefits to you

  • You receive the immediate income tax deduction for the cash value of the policy.
  • You are able to make a generous gift to the Ballet Austin Foundation without affecting your cash flow.
  • You can transfer ownership of a life insurance policy to the Ballet Austin Foundation who would then receive the death benefit of the policy.

Charitable Remainder Annuity Trust

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 or the trust.  They also receive monthly payments from the trust until their time of their death.  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 specified term.
  • You defer payment of the capital gain tax on appreciated assets you donate.
  • You receive the benefits of the donation now and Ballet Austin Foundation benefits from it in the future.

You transfer assets to a trust that makes fixed payments to you or a beneficiary.  When the trust ends, the principal is donated to the Ballet Austin Foundation.

Charitable Lead Trust

Example
Mike establishes a lead trust, valued at $500,000, to benefit the Ballet Austin Foundation.  The trust will pay the BAF an annual income of 5% of the trust’s value for 15 years, starting with an initial payment of $25,000.  Mike may receive an income tax deduction for present value of the payments.  After the 15 years, the remainder of the trust passes to Mike’s family. The trust’s appreciation goes tax-free to his family.

Benefits to you

  • You receive a gift tax deduction for the present value of the annuity payments to the Ballet Austin Foundation.
  • The transfer taxes due when the principal is paid to your heirs can be lessoned or eliminated based on the structure of the annuity payments and the term of the trust.
  • Your heirs receive the appreciation on the trust tax free.
  • Your lifetime available estate tax exemption (currently $3.5 million per person) can be applied to reduce taxes on transfers to your heirs.
  • You are able to make a generous donation to the Ballet Austin Foundation now while reducing the taxes on transfers to your heirs later.

You transfer assets to a trust that makes fixed payments to the Ballet Austin Foundation for specified term.  When the trust ends, the principal goes to your heirs.

IRA or 401(k)

Example
Jane is a Board Member of Ballet Austin.  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 continue to make withdrawals, but will be able to leave the remainder to the BAF upon her passing.

Benefits to you

  • You can avoid income and estate taxes on residual left in your account.
  • You can continue to make withdrawals during your lifetime.
  • You can change beneficiaries throughout your lifetime.

You can name Ballet Austin Foundation as a beneficiary of your IRA or 401(k).

For more information on planned giving, please contact the Development Office at 512.476.9151, ext. 114.

 

 
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