Bequest and Life Income Agreements
(Intended as a general guide for use by attorneys)
STEAC is providing this sample gift/bequest language with the caveat that the language is just that - sample language. It may not simply be "dropped" into your living trust or Will because it could conflict with your current estate plan. Additionally, terms used in the sample language (e.g. "trust estate") may not dovetail with identical or similar terms used in your current estate plan. Because the authors of this sample language aren’t reviewing your entire estate plan, they simply don't know if the sample language will conflict with your current plan. STEAC therefore advises you to consult with your own estate planning professional before adopting this language or incorporating it into your estate plan.
STEAC’s legal and corporate name is Short Term Emergency Aid Committee, but the organization is also known as STEAC. The address of STEAC is 1712 Picasso Ave. Suite D, Davis, CA., 95618, and the phone number are 530-758-8435 and 530-758-8521 (FAX). E-mail: steac@steac.org. STEAC is a nonprofit California corporation that has earned tax exempt status under Section 501(c)(3) of the IRS Code (tax ID: 94-6138684).
A. Unrestricted Bequest
(Will) “I give to the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California, outright, the following:
• (Cash Bequest) _____________ dollars ($ ________).”
• (Stock Gift) ________ shares of common stock of _____________ Corporation.”
• (Percentage of Estate) ________ percent ( ___%) of the residue of my estate.”
• (Other) _________________________________________________________.”
(Trust) The Trustee shall distribute the following outright to the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California:
• (Cash Bequest) _____________ dollars ($ ________).”
• (Stock Gift) ________ shares of common stock of _____________ Corporation.”
• (Percentage of Estate) _______ percent (___%) of the residue of the trust estate.”
• (Other) _________________________________________________________.”
B. Bequest for Specific Purpose
(Will) “I give to the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California, _____________ dollars ($ ________) (or the property herein described) for the following purpose (or purposes) (insert desired clause – see samples below). In the event that any of the purposes for which the funds paid pursuant to this bequest become frustrated, unreasonably burdensome, or impractical (as determined by the governing board of STEAC in its discretion), such funds shall be used for such other purpose (or purposes), which shall be as close as practical to the purpose (or purposes) set forth herein, as determined by the governing board of STEAC in its discretion.”
(Trust) “The Trustee shall distribute_____________ dollars ($ ________) (or the property herein described) to the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California, for the following purpose (or purposes) (insert desired clause – see samples below). In the event that any of the purposes for which these funds are distributed become frustrated, unreasonably burdensome, or impractical (as determined by the governing board of STEAC, in its discretion), such funds shall be used for such other purpose (or purposes), which shall be as close as practical to the purpose (or purposes) set forth herein, as determined by the governing board of STEAC in its discretion.”
Sample “Purpose” Clauses
1. “…general support of the mission of the Short Term Emergency Aid Committee.
2. “…increasing the permanent endowment funds of STEAC, the annual income to be used to support and enhance the mission of STEAC.
3. “…support and enhance the programs and/or related to STEAC’s collecting and distributing food to low income residents of Davis, California.”
4. “…support and enhance the programs and/or related to STEAC providing emergency rental assistance to low income residents of Yolo County, California.”
5. “…support and enhance the programs and/or related to STEAC providing holiday gifts and food to low income residents of Davis, California.”
C. Bequest for an Unrestricted Memorial
(Will) “I give to Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California, _____________ dollars ($________) (or the property herein described), to be used to establish The_____________________Memorial. The funds shall be invested and managed by STEAC pursuant to its usual policies, and the income generated by these funds shall be used as the governing board of STEAC determines so as to best promote the work of STEAC. The governing board of STEAC shall have the right to expend the whole, or any part, of the principal of said sum in the erection of a building or in connection with some specific project or purpose, provided that suitable memorial in the name of ____________________ is established.”
(Trust) The Trustee shall distribute _____________ dollars ($ ________) (or the property herein described) to the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California, which shall be used to establish The_____________________Memorial. The funds shall be invested and managed by STEAC pursuant to its usual policies and the income generated by these funds shall be used as the governing board of STEAC determines so as to best promote the work of STEAC. The governing board of STEAC shall have the right to expend the whole, or any part, of the principal of said sum in the erection of a building or in connection with some specific project or purpose, provided that suitable memorial in the name of ____________________ is established.”
D. Bequest for a Named Endowment or Memorial Endowment Fund
(Will) “I give to the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California, _____________ Dollars ($________) (or the property herein described) to be known and designated as The ____________________ Fund. The funds shall be made a part of the endowment established by STEAC and shall be subject to the endowment’s investment and spending policy as may be determined from time to time. The income generated by these funds shall be used for STEAC’s programs.
(Trust) The Trustee shall distribute _____________ dollars ($ ________) (or the property herein described) to STEAC, a California nonprofit corporation, Davis, California, to be known and designated as The ____________________ Fund. The funds shall be made a part of the endowment established by STEAC and shall be subject to the endowment’s investment and spending policy as may be determined from time to time. The income generated by these funds shall be used for STEAC’s programs.
(Will and Trust) If the purpose for which the income is being used becomes frustrated, unreasonably burdensome, or impractical (as determined by the governing board of STEAC. (in its discretion), such funds shall be used for such other purpose (or purposes), which shall be as close as practical to the purpose set forth herein, as determined by the governing board of STEAC in its discretion.”
If a contribution to STEAC will be restricted, it is recommended that the intended provision be reviewed with STEAC officials at the time the bequest provision is drafted, to be certain the wishes of the donor can be carried out.
Please note the minimum amounts necessary to establish a meaningful named endowment fund are:
• Food Closet: $50,000
• Equipment: $50,000
• Administrative Office: $50,000
• Staff and volunteer support: $50,000
• Rental Assistance: $100,000
E. Gift of Residuary Estate
(Will) “I give the entire residue of my estate outright to the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California.”
(Trust) “The Trustee shall distribute the entire residue of the trust estate outright to the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California. “
F. Contingent Gift of Residuary Estate
(Will) “I give the entire residue of my estate to my spouse _____________name_____________ if (he/she) survives me. If my spouse does not survive me, I give the entire residue of my estate outright to the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California.”
G. Gift Dependent of Estate Size
(Will) “I give the greater of _____________ dollars ($________) or _______ percent (___%) of the residue of my estate outright to the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California.”
(Trust) “The Trustee shall distribute the greater of _____________ dollars ($________) or _______ percent (___%) of the residue of the trust estate outright to the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California.”
H. Gift to be Free of Taxes
“I direct that no estate or other transfer taxes reduce the amount or share of any gift to be made to the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California.”
I. Provision for Pledge Payment
(Will) “If any portion of any pledge that I have made to, or for the benefit of, the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California, remains unsatisfied at my death, such unpaid portion shall be a claim against my estate by the Short Term Emergency Aid Committee and shall be satisfied in full by my representatives.”
(Trust) “If any portion of any pledge that I have made to, or for the benefit of, the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California, remains unsatisfied at my death, such unpaid portion shall be a claim against the trust estate by STEAC and shall be satisfied in full by the Trustee.”
J. Specific Bequest
(Will) “I give the following property (indicate specific property) outright to the Short Term Emergency Aid Committee, a California nonprofit corporation, Davis, California.”
(Trust) The Trustee shall distribute the following property (indicate specific property) outright to the STEAC, a California nonprofit corporation, Davis, California.”
K. Bequest of Life Income for a Survivor with the Principal Going to STEAC on Survivor’s Death
A representative of STEAC would be pleased to discuss with you and/or your personal advisors, the alternatives available.
If you wish to make a bequest more restricted, limited in use to a specific program or function, or establish a named fund, we request you contact the STEAC office to determine wording that will ensure its utilization according to your intentions.
Real or personal property gifts (real estate, artwork, collections, and personal effects) are also accepted by STEAC in many instances. However, it is advisable to discuss such a gift with us first.
Due to costs associated with managing our work and current state budget challenges, 5% of your gift will be used to support STEAC’s general efforts and outreach costs.
