- Planned Gifts
- Life Income Gifts
- Life Insurance
- Charitable Lead Trust
- Residence or Farm
- More Information
Planned gifts are often referred to as deferred gifts. Our donors often make these gifts after planning their estates and writing their wills. A planned gift is a way of supporting Trinity-Pawling in a way that maximizes your personal objectives while minimizing the after-tax cost.
Depending on the choice of the gift asset and the type of gift you might make, you can generally expect to realize some or all of the following benefits:
- Fulfillment of philanthropic goals.
- Income-tax savings through charitable deduction for the value of the gift.
- Avoidance of capital-gain tax on contributions of long-term capital-gain property.
- Payments for life for the donor and/or other beneficiaries.
- The possibility of increased spendable income.
- Elimination of federal estate tax on the value of the interest in property passing to Trinity-Pawling upon your death.
- Reduced costs and time in estate settlement.
The following are the benefits of various forms of planned charitable gifts that can be made to Trinity-Pawling School. It is recommended that you consult with your tax and legal advisors for a full discussion of the tax implications of particular gift plans.
Providing a gift for Trinity-Pawling in your will helps build the School's endowment and provides a stream of operating income to T-P in future years. Charitable will bequests may specify a dollar amount or a percentage of your residual estate. (Your residual estate is the amount remaining after your will has paid estate costs and provided for specific bequests to heirs and other beneficiaries.) In each case, the amount of the gift is excluded from the valuation of your estate for estate tax or inheritance tax purposes.
Life Income Gifts
In making a significant gift to Trinity-Pawling School, you may commit to the gift now but delay the School's possession and use of the gift until your death or the death of the final beneficiary. Charitable Remainder Unit Trusts (aka Unitrusts) and Charitable Annuity Trusts offer the satisfaction of making a gift to T-P while retaining income from the principal for your use. These irrevocable trusts qualify for special tax consideration.
You can name Trinity-Pawling as the primary beneficiary of a life insurance policy. This would enable you to retain ownership of the policy and have access to the policy's cash value. This type of gift can reduce your estate tax liability.
Should you wish a more immediate tax benefit, you may elect to name Trinity-Pawling School as the owner of the policy. This would be an irrevocable assignment to T-P of all rights in the insurance policy. You would be allowed an immediate federal income tax charitable deduction.
Charitable Lead Trust
This type of trust provides for a gift of payment from the trust property to Trinity-Pawling School for a term of years, after which the property reverts to you or passes to a non-charitable beneficiary - such as one or more family members - designated by you. The charitable lead trust, depending upon the manner in which it is structured, can significantly reduce or even eliminate either the gift tax or estate tax.
Residence or Farm
You may give a personal residence or farm to Trinity-Pawling School while retaining the right to occupy the property. This type of gift provides an income-tax deduction that frees up tax dollars into spendable income without causing any disruption to your lifestyle. It also permits you to escape any potential capital-gain tax on the built-in appreciation.
A singe-family dwelling, condominium, vacation home, or stock owned by you as a tenant-stockholder in a cooperative housing corporation qualifies as a personal residence if used each year by you. A gift arrangement of this type would be contingent on a number of factors including Trinity-Pawling's assessment of the marketability of the property and its ability to maintain the property for an extended period of time.
To learn more about planned gifts, contact Regan LaFontaine, Director of Advancement, at (845) 855-4838 or via email to firstname.lastname@example.org.