Proper estate planning through a will or living trust may save your estate substantial taxes and ensure that the people and institutions you care about are provided for after you are gone. If you do not have a will or living trust, the state may make decisions about your assets that affect those closest to you. A bequest to Occidental reduces your taxable estate. Specific language for designating bequests for certain purposes (for example, scholarships or professorships) is available through the College’s Office of Gift Planning. Our "Suggested Forms of Bequest Language" may be helpful in your estate planning.
“I used to tell my freshmen I wanted a memorial at Forest Lawn with a direct line to Oxy’s president,” Winter jokes. “Well, I’ve revisited this notion—I would rather have architect Brenda Levin put a Myron Hunt façade on Coons Administration Building—and my bequest may just fund this!”Summary of Features and Benefits
- A bequest can allow you to pass your assets directly to Occidental.
- It can be established on a contingency basis so that Occidental receives your bequest only upon the occurrence or non-occurrence of certain circumstances you specify.
- You may also make a residuary bequest, in which case the College will receive only that portion of your estate that remains after distribution of all other specific bequests.
- Another popular option is to leave a certain percentage of your estate to the College.
- A bequest provides flexibility fulfilling your wishes after your death.
- You are entitled to an estate tax charitable deduction.
- A bequest reduces your taxable estate by removing the asset from your taxable estate.
- A living trust, which can include a charitable bequest, can reduce your probate costs.
IRAs and Qualified Retirement Assets
If you are already considering a bequest to Oxy through your will or trust, you may want to consider whether the bequest could be made by listing the College as a beneficiary of an Individual Retirement Account or qualified pension plan. Income and estate tax due on retirement assets at the time of death can often be substantial and absorb a significant portion of these assets. By designating the College as a beneficiary of your IRA or other qualified retirement plan, the portion earmarked for Occidental will not be subject to estate or income taxes upon your demise.
Another option is to use retirement plans to fund a charitable remainder unitrust upon your demise. Under this scenario your retirement funds are rolled into a charitable remainder unitrust which pays your spouse or children income for their lifetimes or a term of years (not to exceed 20 years); when the unitrust terminates the trust the assets could go to Occidental. Your estate would receive a charitable deduction for a portion of the amount used to fund the unitrust, your family still benefits from the income and Occidental ultimately benefits from your support.
This information is provided with the understanding that Occidental College is not engaged in rendering legal, accounting, or other professional advice and assumes no liability whatsoever in connection with its use. Because tax laws are constantly changing and are subject to differing interpretations, we urge you to consult your tax and financial advisors before acting on the information contained herein.
Last updated:12/17/07