The Portland Museum of Art has established a Planned Giving Program to encourage financial support to the museum through Planned Gifts in wills, trusts, pooled life income gifts, and life insurance gifts. Planned Gifts can be an effective means of providing tax and financial benefits for you and your family as well providing ultimately for the museum. The information presented in this brochure is general in nature. Each donor should consult with his/her own attorney and financial and tax advisors before making a Planned Gift. If you are considering a Planned Gift to the Portland Museum of Art, please contact Will Cary, Director of Leadership Gifts & Planned Giving, at (207) 699-4909, who will work with you and your advisors on a confidential basis in regard to your proposed Planned Gift.
The Winslow Homer Society The Winslow Homer Society has been established to recognize and honor those members and friends who have included the Portland Museum of Art in their estate plans. Charles Shipman Payson’s gift of the Homer Collection in 1976 became a powerful catalyst for the Museum’s expansion, for significant long-term loans, and for outright gifts. Your membership in the Winslow Homer Society will help ensure the Museum’s financial stability and the continuation of its programs of excellence. If you have already placed the Portland Museum of Art in your will, you are encouraged to notify the Will Cary so that your name may be include in The Winslow Homer Society at the PMA.
Gifts By Will Your will is a very personal document. It designates your beneficiaries and spells out your ongoing priorities. Your will, when it is drafted by your lawyer, is hand tailored to incorporate your decisions. A bequest in your will to the Portland Museum of Art is exempt from the federal estate tax and the Maine estate tax. The following suggested forms of bequests are examples and can be adapted by you and your lawyer to meet your specific intentions.
Specific Bequest "I give and bequeath to the Portland Museum of Art, a Maine non-profit corporation, Seven Congress Square, Portland, Maine, the sum of $ ___________ (or specific described property such as a painting) to be used for the general purposes of the museum (or to be used for a specific purpose such as endowment, education, purchase of art, etc.)."
Residuary Bequest "I give and bequeath to the Portland Museum of Art, a Maine non-profit corporation, Seven Congress Square, Portland, Maine, all (or stated percentage of) the rest residue and remainder of my estate to be used for the general purposes of the museum (or to be used for a specific purpose such as endowment, education, purchase of art, etc.)."
Contingent Bequest A contingent bequest names the Portland Museum of Art to receive part or all of your estate in the event designated beneficiaries predecease you. You might insert in your will language such as the following: "If any beneficiary named in this will is not living at my decease, then I give, devise and bequeath to the Portland Museum of Art, a Maine non-profit corporation, Seven Congress Square, Portland, Maine, any bequest which said beneficiary would have received if he or she had survived me."
Gifts By Trust Gifts to the Portland Museum of Art may be included in either a lifetime or testamentary trust. A lifetime trust is sometimes referred to as a revocable, intervivos or management trust. A testamentary trust is one incorporated in your will. The language included in either a testamentary or lifetime trust would follow the language suggested for inclusion in your will. Trusts provide flexibility to you so that you might leave the income to a named individual with the principal to the Portland Museum of Art upon that individual’s death. There are two types of irrevocable trusts which you might want to consider to benefit the Portland Museum of Art.
Charitable Remainder Trust A Charitable Remainder Trust, which can be in the form of either a unitrust or an annuity trust, provides for the irrevocable transfer of assets to an independent trustee who pays income to you or any beneficiary you designate for life or a term of years and, upon the death of last beneficiary, the trust principal goes to the Portland Museum of Art. A unitrust provides that the fluctuating amounts paid during any one year to the beneficiary are a percentage of the fair market value of the unitrust assets, which by law cannot be less than 5 percent. An annuity trust provides that a fixed amount is paid annually to the beneficiary regardless of the value of the assets, but by law that amount cannot be less than 5 percent of the fair market value of the trust when it is established.
Charitable Lead Trust A Charitable Lead Trust provides income to a charity such as the Portland Museum of Art for a fixed number of years (10 to 20 for example) and then the principal of the trust reverts to you or your family members. Such a trust can be used to transfer income you may not need for a period of time to a charity for either its general purposes or a specific purpose, and then the principal reverts to you , or those named by you, often children or grandchildren. Under the Internal Revenue Code, there are tax advantages to the various trusts described and your legal, financial and tax advisors can assist you in maximizing those benefits.
Gifts By Pooled Life Income Fund The Portland Museum of Art has established a Pooled Life Income Fund, a managed fund which provides an easy vehicle for you to make a gift to the museum while reserving the income for your lifetime. Some of the advantages of a Pooled Life Income Fund gift are as follows:
- You receive an immediate charitable income tax deduction based on the age of the beneficiaries and the return of the fund
- You can give appreciated securities or other assets without having to pay a capital gains tax
- You may increase your income if you give low-paying appreciated securities
- You diversify your investments and obtain professional management through your gift — similar to a mutual fund
- Your estate taxes will be reduced
- You can receive income for someone else’s lifetime in addition to your own
- You have the satisfaction of knowing you are helping the Portland Museum of Art during your lifetime
Gifts By Life Insurance If you have a life insurance policy which you no longer require for family needs such as education, such a policy creates a charitable tax deduction for you on your federal and estate income tax returns in the year you transfer title to the policy to the museum. The amount of the deduction is roughly the cash value of the policy. Any premiums you pay on policy after transferring title to the museum qualify as a charitable deduction on your federal and state income tax returns for the year in which the premium is paid. The gift of a life insurance policy to the Museum removes that policy from your estate and reduces your federal estate tax. You should consult with your insurance agent or advisor for assistance in making a gift of an insurance policy.