Estate Planning Tools

You may provide for CAPS through a variety of estate-planning tools, including:

1. Gifts to CAPS through your will or trust (the most common method)

  • Gifts may include cash, securities, real estate, a vehicle, or a collection (see more examples below).
  • For example, you may make a gift of your residence so that you and your family can continue to use it for your lifetimes, while you receive a current income tax deduction.
  • Your will can create one or more trusts to provide for specific heirs. Upon their deaths or at the end of the term of the trust, the balance could then be given to CAPS. These trusts can be charitable trusts that offer an estate tax deduction.
  • You can add CAPS to your will simply through an amendment called a codicil; thus your entire will does not have to be redrafted. 

Sample language to give through your will or trust:

  • General/outright bequest: “I leave $____ or ____percent of my estate to CAPS, Santa Barbara, California.”
  • Specific bequest: “I leave my (name property here) to CAPS, Santa Barbara, California.” Examples include 1,000 shares of ABC stock, a primary or secondary residence, a farm, undeveloped land, vehicles such as a car, airplane or boat, or a collection of art.
  • Residuary bequest – after you have provided for your heirs: “I leave ____ percent of the remainder of my estate to CAPS, Santa Barbara, California.”
  • Contingent bequest – remembers CAPS if a named heir does not survive you: “I leave $_____ to my sister Jennifer. If she does not survive me, then this bequest shall be made to CAPS, Santa Barbara, California.

2. Naming CAPS as a beneficiary of your life insurance policy, retirement plan, royalties, or mineral rights

  • Giving a new insurance policy, or one you no longer need, to CAPS offers a current charitable deduction, and additional premiums paid by the donor will be tax-deductible each year.
  • Retirement plans like an IRA, 401(k), 403(b) or pension plan are wonderful vehicles for charitable giving but poor vehicles for transferring assets to heirs as they can be subject up to 70% in combined estate and income taxes!  Adding CAPS as one of your plan beneficiaries is a simple change available through your plan account administrator.
  • You may also give a gift to CAPS in the form of royalties or mineral rights.

3. Charitable gift annuity

  • Are you looking for a secure source of fixed income for now or your future? Consider giving through a charitable gift annuity.
  • How it works:  You transfer property to us. In exchange we pay you a fixed income for life.
  • The fixed income can be quite high depending on your age - often higher than CD rates at a bank.
  • A portion of your income stream may even be tax-free. You will receive a charitable deduction for your gift and the satisfaction of furthering CAPS' mission.

4. Life-income gifts such as charitable trusts

  • Charitable trusts and other life-income gifts can be made while you are alive or, upon your death, through a will or trust. Life income gifts may provide significant annual income for you or your heirs or may significantly reduce estate taxes.

If you have already included CAPS in your estate plans, thank you and please let us know so we may welcome you into CAPS’ Legacy Society. If you would like to learn more about making an estate gift to CAPS, please contact (805) 564-6626 x105 or development@capsweb.org.

Note: Tax deductions are based on the asset’s fair market value. Non-cash bequests may require an appraisal.

A website cannot tell you everything you need to know about estate planning and which methods would be best for you and your family. This information is not intended to constitute legal or financial advice. Your estate plans are important legal documents that should express your wishes and should be prepared by your attorney. Please consult your attorney and financial advisors.

Top