RETIREMENT PLAN GIFT


Retirement Plan Gift
The spirit of Bohemia and the ancient art of Patronage have long been intertwined. Kings and emperors, lords and ladies, and citizens of wealth and power generously supported the creative process of poets and writers, painters and sculpturers, actors and musicians. The 'grand tradition' continues today...

Without the support of our generous circle of givers, PacRep Theatre could no withstand the "whipsand scorns of time." We thank the following individuals, without whom our community would lament the loss of so many of our treasured historic and cultural resources.

What is a Retirement Asset Gift?

This is also one of the easiest planned gifts you can make, and potentially the least costly to your heirs. You simply name PacRep as the beneficiary of your IRA, 401(k), 403(b), Keogh, or other retirement plan asset. You continue to control these investments and take required minimum distributions as required by law, plus any other distributions that you may need.

When should a Retirement Asset Gift be considered?

This type of gift is particularly attractive to those who will likely be subject to estate taxes. Upon the death of the owner (or spouse if named a primary beneficiary) retirement assets are subject to both income taxes and estate taxes. This can result in a loss of 70% or more of the asset to taxes. Alternatively, you can give this asset to Pac Rep and avoid both estate and income taxes on this asset.

What are the advantages of a Retirement Asset Gift?

The advantages are:
  • Easy to set up and change, simply contact your IRA custodian or retirement plan administrator and request of change of beneficiary form.
  • Does not reduce your current income or jeopardize your ability to sustain yourself financially while you are alive.
  • Enables you to provide a substantial future support to a cause that is important to you.
  • May reduce estate taxes and future income taxes (depending upon the size and structure of your estate).
  • This gift is revocable, which means you can change your mind at any time.
  • Membership in the Encore Circle, the community of PacRep supporters who have made similar provisions in their estates.


To discuss a contribution or show sponsorship, or to find out more about PacRep Theatre's planned-giving program, please call Executive Director Stephen Moorer at 831.622.0700 ext. 104.



Many individuals today have large qualified retirement plans such as an IRA, 401(k), or Keogh plan. These assets have been growing tax-free for years. Once the owner begins to receive payments from the qualified plans, the distributions are taxed. The plans are also included in the owner's taxable estate. A retirement plan may be an excellent source of funds for making a gift to Pacific Repertory Theatre.

One way to make a gift of your retirement plan is to create a charitable remainder trust through your will. It works like this: Your IRA assets will be transferred to a charitable remainder trust. There is no tax due because the charitable remainder trust is a tax-exempt entity. The trust will provide life income to the beneficiary (for example, your child) with an eventual gift to Pacific Repertory Theatre. The beneficiary will pay income tax on the distributions from the trust. Your estate will receive an estate tax charitable deduction for the value of Pacific Repertory Theatre's right to eventually receive the trust assets.


We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
For example: Mrs. Edwards irrevocably transfers $100,000 to create a charitable remainder annuity trust that will provide her with life income payments. Included in the trust agreement is the stated payout percentage of 7. She will receive $7,000 annually for her life ($100,000 x 7%). If income earned by the trust exceeds the fixed payment of $7,000, the excess is reinvested.

The many benefits of a Charitable Remainder Trust include:
  • receive income for life
  • eliminate taxes on capital gains on the sale of appreciated securities
  • receive immediate charitable income tax deduction based on your age
  • remove all or most of the assets donated from your estate, thereby
  • reducing potential estate taxes
  • receive the satisfaction of supporting Pacific Repertory Theatre
These types of trust allow you to attain your own personal financial objectives while making a significant gift to Pacific Repertory Theatre. The best type for you depends on your own individual needs.

A Pooled Income Fund is a type of charitable remainder trust that operates somewhat like a mutual fund, wherein your gift to the fund, along with similar gift from others, are invested in a common fund. A pooled income fund gift may be established with an amount as little as $5,000. You will receive income earned by the fund in proportion to the number of shares you have in the fund. Pacific Repertory Theatre may use the remaining principal only after your death (and the death of one surviving beneficiary if one is designated).

For example, Mr. Simon's $10,000 life income gift is invested in our pooled income fund. The fund's net income is 6 percent this year, so he receives $600--his share of the annual earnings. Each year, Mr. Simon's payment will reflect any increase or decrease in the fund's net income.

Note: Currently, pooled income fund gift are unavailable in the states of Arkansas, Connecticut, Florida, Mississippi, Nebraska and Tennessee.


We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.


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