A Smart Planning Tool
Making a gift to The Philadelphia Orchestra or Ensemble Arts Philly through a beneficiary designation is often overlooked—but it can be one of the most effective ways to support a cause you care about while preserving other assets for your loved ones. Like many supporters, you may be unsure how much you’ll need in retirement and reluctant to give up assets now. A beneficiary designation lets you keep full control during your lifetime while planning a meaningful future gift.
Here’s why—and how—this approach may work for you and The Philadelphia Orchestra or Ensemble Arts Philly.
More Than a Will or Trust
Your will controls the distribution of assets that pass-through probate. A living trust distributes only the assets titled in the trust. However, many of your assets are not governed by either document.
In fact, a significant portion of many estates passes through beneficiary designations—sometimes more than through a will or trust.
Assets with Beneficiaries
Beneficiary designations typically control who receives:
- Retirement accounts
- Life insurance policies
- Bank accounts such as savings or certificates of deposit
- Investment accounts held at brokerage firms
- Commercial annuity contracts
These assets pass directly to the individuals or organizations you name, outside of your will or trust.
Why Taxes Matter
Most retirement accounts—such as IRAs, 401(k)s, and 403(b)s—were funded with pre-tax dollars. Income taxes are due when funds are withdrawn. If you name heirs as beneficiaries, they must generally withdraw and pay taxes on the assets within 10 years, often at higher tax rates.
If your estate is subject to estate tax, these assets may be taxed again—further reducing what your heirs receive. The Philadelphia Orchestra and Ensemble Arts Philly are tax-exempt. When we are named as a beneficiary, the full value of the account can be used to advance our mission to share the transformative power of the performing arts and arts education with the widest possible audience.
Next Steps
Talk with your professional advisors about how naming The Philadelphia Orchestra or Ensemble Arts Philly as the beneficiary of some or all of your accounts fits into your overall estate plan. To make a designation, request beneficiary forms from your account administrator. Many financial institutions also allow you to update beneficiaries online.
A beneficiary designation is a simple step that can make a meaningful difference—for The Philadelphia Orchestra or Ensemble Arts Philly and for those you care about most.
