Deed of Gift to Museum of Undivided Share of Donors Entire Interest In Work of Art
DEED OF GIFT made on [date] by [name] residing at [address] (the Donor) to the [name of institution], a nonprofit institution chartered by the State of [State] having its principal offices at [address] (the Donee).
WHEREAS, the Donor is the owner of an original sculpture called [name], sculpted by [name] (the Work); and
WHEREAS, the Donee is a tax-except organization under Section 501(c)(3) of the Internal Revenue Code one of whose purposes is to have public exhibitions of works of art such as the Work and also to provide facilities for art students and art historians to examine works such as the Work; and
WHEREAS, the Donor wishes to transfer to the Donee an undivided 25 percent (25%) interest in and to the Work;
NOW THEREFORE, KNOW ALL MEN BY THESE PRESENTS THAT:
1. Gift. The Donor irrevocably gives, transfers, and assigns an undivided 25 percent (25%) interest in and to the Work to the Donee.
2. Donee's Possessory Rights. The Donor grants to the Donee the right to possess and control the Work for three consecutive months of each twelve-month period commencing with the date hereof. The Donee, in its sole discretion, may decide during which months it will exercise its right provided that its initial period of possession will be for at least three months during the current 12- month period.
3. Insurance. The Donor will maintain a fine arts policy covering the Work in force at all times in an amount not less than ---------- dollars ($----------). The Donor and Donee shall be the beneficiaries thereof in accordance with their respective interests. The Donor shall pay all premiums due on the policy. The Donee will repay 25 percent (25%) of all premiums to the Donor upon the Donor's demand therefore. Should the Donor fail to demand the repayment of 25 percent (25%) of any premium, the amount shall be deemed a contribution made by the Donor to the Donee. The parties shall reappraise the Work from time to time to determine whether the amount of insurance coverage for the Work should be increased.
4. Disposition of Gift. The Work will not be sold or otherwise disposed of, without the written approval of both the Donor and Donee. If the Work is sold, the net proceeds of such sale shall be divided 25 percent (25%) to the Donee and 75 percent (75%) to the Donor. If the Work is exchanged for another work of art the provisions of the Deed of Gift shall apply to such other work of art as if it were the original Work.
5. Appraisal. The Donor has had the Work appraised by [name of appraiser], a person qualified to appraise works of art, on [date], [name of appraiser] has found the Work to be worth ---------- dollars ($----------). A copy of the appraisal is annexed hereto as Schedule A [omitted]. On or before [date], the Donor will submit a completed Internal Revenue Form 8283 to the Donee containing a summary appraisal of the Donee's 25 percent (25%) interest in the Work showing its value to be ---------- dollars ($----------) signed by [name of appraiser]. The Donee will promptly sign the submitted Form 8283 and return it to the Donor so that the Donor may attach the Form to the Donor's Federal Income Tax Return for 20--.
IN WITNESS WHEREOF the Donor has executed this Deed of Gift the day and year first above written.
The above described gift is accepted by [name of institution] upon the terms and conditions contained in the Deed of Gift.
[name of institution]