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frequently asked questions

• What Is A Bequest?
• I'm Not Wealthy, Can My Bequest Still Make A Difference?
• I have a will. Do I need anything else?
• Can bequests be handled in a living trust?
• What happens to my personal possessions?
• If a trust agreement is established as irrevocable, it means that it can't be revoked (broken) except under unusual circumstances. Why would anyone want an irrevocable trust?
• What is the difference between a charitable remainder unitrust and a charitable remainder annuity trust?
• What happens to my assets in a trust for a charity if the charity goes out of business before the expiration of the trust?
• Should I name a charity as trustee of my charitable remainder trust?
• How often should I update my will or trust?
• Can I use my insurance to benefit charitable organizations?
• How can I fund a charitable gift annuity and how is my income calculated?
• Can I set up a charitable gift annuity and delay the start of the income until I will more likely need it, such as at my retirement, when my income is lower?

What Is A Bequest? Bequests are the actual gift disbursals that result, upon one's passing, from a specifically worded commitment in a will or trust agreement. Bequests are unlike any other gifts we receive because they represent individuals' final statements about what is most important to them. Every bequest is a powerful expression of loyalty, good will, and faith in the future of us and our mission.

Actor Steven Epp gets ready for a show at the Tony Award-winning Berkeley Repertory Theatre

I'm Not Wealthy, Can My Bequest Still Make A Difference? You do not have to be wealthy to create a legacy. A bequest of any size can be significant in helping to preserve our mission and our reach.

I have a will. Do I need anything else? In addition to a will, most experts recommend that you have a durable power of attorney, which allows another person to act on your behalf should you become incapacitated. Also, a living will is helpful to your heirs in that it directs at which point you do not want your life artificially supported.

Can bequests be handled in a living trust? Certainly. You may wish to consider a living trust as an estate planning tool. More information is available. Living trusts may be either revocable or irrevocable and there are advantages and disadvantages to consider in both.

What happens to my personal possessions? Personal possessions are best distributed through a tangible personal property memo in which you list the personal items you wish to give to specific people. Your will must mention the existence of this memo and you should keep a copy of it with your will.

If a trust agreement is established as irrevocable, it means that it can't be revoked (broken) except under unusual circumstances. Why would anyone want an irrevocable trust? There are always specific reasons for making an irrevocable trust agreement. Perhaps it involves a family business where some of the family members are getting on in years and the family wants to make certain that management continues to run smoothly even if hindrances, such as senility, enter the picture.

Many times the reasons for an irrevocable trust involve estate and/or income tax avoidance. In order to be successful in such avoidance, the trustor must not have any direct or indirect power or control over the trust property or income. The regulations on this subject, set out in the Internal Revenue Code, must be carefully followed.

What is the difference between a charitable remainder unitrust and a charitable remainder annuity trust? The major difference is in the valuation of the assets of the trust, which establishes part of the calculation for the determination of the amount of income received by the income beneficiary(-ies). The annuity assets are valued at the time the assets are placed in the trust and are never revalued. Annual payments remain the same, whether the assets appreciate (increase in value) or decline (lose value). The assets in the unitrust are revalued annually. If the trust assets appreciate, the payment to the income beneficiary(-ies) will increase. If the trust assets depreciate, the payment will decrease.

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