Leave a Legacy that Lasts a Lifetime and Beyond
Planned giving is a strategy that allows you to donate assets in a way that secures your charitable intent, offers a tax benefit for you or your estate, and provides for future needs of the school. There are a variety of ways to give a planned gift including bequests, life insurance, charitable trusts, real estate and qualified IRAs.
The benefits of charitable estate planning are many: your charitable intentions are ensured, estate and inheritance taxes are reduced, and organizations that you care about are sustained well into the future.
Ways to Make a Planned Gift
Income Interest Gifts
Through an income interest gift, a donor may contribute the income from an asset while retaining ownership of that asset. In this case, the school receives income for a designated period of years, after which the asset and any subsequent income return to the donor, spouse, children or other designated person. This form of gift offers both immediate and future tax advantages.
An existing life insurance policy, which is no longer needed by the donor, can be given to the school or a new policy may designate the school as owner and beneficiary. In either case, the value of the existing policy (or the donor’s investment, if less), or the donor’s payments to cover annual premiums on a new policy, are fully deductible as charitable contributions.
Through the remainder gift, a donor may contribute assets, such as securities or real estate to the school and retain for life the income from those assets for himself or herself, his or her spouse, or both. A remainder gift permits the donor to take an income tax deduction for the charitable portion of the value of the gift. Furthermore, if the gift is in the form of appreciated securities or real estate, the donor may not pay capital gains tax on the appreciation.
Tangible Personal Property
If the donor gives a tangible asset, such as a work of art that has appreciated in value, and that asset is used by St. Anne’s School in its educational program, the donor receives a charitable deduction equal to the asset’s full fair market value. If the asset is not used by the school, the donor’s charitable deduction is limited to the cost basis of the property.
A donor may include a bequest to the school in his or her estate plan. Bequests may be for a specific amount, a percentage of the donor’s estate, or even a residual portion. To make a bequest from your retirement account, IRA or other account, simply ask for a beneficiary form from your account management company and complete the percent of that account you wish St. Anne’s School to receive. That portion will not be subject to estate taxes.
The St. Anne’s Legacy Society
The St. Anne’s Legacy Society recognizes those members of the St. Anne’s School of Annapolis community who participate in our planned giving program. Our generous members help ensure our future by including St. Anne’s School in their estate or financial plans. This may be through a variety of methods including bequests, retirement account assets and life-income arrangements.
Careful planning will ensure the promise of excellence for future generations of St. Anne’s School students while providing tax benefits for you and your family.
For more information about planned giving, contact Director of Development Hutchey Doley at 410.263.8650 ext.116.