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A Bequest to Save Taxes

A Bequest to Save Taxes
Thomas was a widower who had a great love for our organization. As an individual who had directly benefited from our work, Thomas wanted to thank us with a gift from his estate.

Thomas told his attorney that he wished to leave a bequest to us as part of his estate plan. Thomas's estate included some stocks, real estate and an IRA. Thomas's attorney recommended that he give the appreciated stock and real estate to his children and leave his IRA to charity.

Thomas: My attorney told me that if I gave the stock and real estate to my children, these assets would receive a step up in basis at my death. My children could then sell them without paying tax. However, if I gave my children my IRA, the IRA would be subject to estate and income tax. After paying all of these taxes, very little would be left for my family. By giving the IRA to this organization, I could make a nice gift and avoid any additional tax for my estate and children.

Thomas contacted his IRA custodian to obtain a beneficiary designation form. He filled out the form and designated our organization as the 100% recipient of his IRA account. Thomas's attorney then specified in Thomas's will the bequest of his other assets to his children.

Thomas: I was so impressed with my attorney's advice that I named him executor of my will!

Thomas called and notified us of his bequest. He was pleased that because our organization was a tax exempt institution, it would receive the full amount of the IRA value when he passed away, creating a legacy for the future.

Is a bequest right for you?


It is easy and convenient to include a bequest in your will or living trust. This link includes sample bequest language that can very easily be included in your will.

You might find it helpful to print this page and the bequest language to give this information to your attorney. If you or your attorney have any questions, please contact us.

*Please note: The name and image above are representative of a typical donor and may or may not be an actual donor to our organization. Since your benefits may be different, you may want to click here to view a color example of your benefits.


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"Members of the Oxy community who support Oxy through their estate plans have provided us with an incredibly distinctive gift-an infinite investment in the College. We are grateful to these generous donors whose forethought will allow Oxy to deliver our exceptional liberal arts education to generation upon generation of talented students."

- President Harry J. Elam, Jr.

"Oxy showed me that the path to one's goals need not be linear or conventional. I learned how to think, to write, to create; to trust my instincts and pursue my interests with passion and a standard of excellence. Not a day has passed that I have not been rewarded in some way by my Occidental education."

- Michael J. Fields '70

Michael and his wife Pamela recently documented an estate gift to support the Obama Scholars Program and the EdgertonOccidental Merit Scholarship.