Planned gifts are often referred to as deferred gifts. Our donors make these gifts after planning their estates and writing their wills. A planned gift is a way of supporting Trinity-Pawling 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
Planned Charitable Gifts
The following are the various forms of planned charitable gifts that can be made to Trinity-Pawling. We recommend that you consult with your tax and legal advisors for a full discussion of the tax implications of particular gift plans.
- Life Income Gifts
- Life Insurance
- IRA Charitable Rollover
- Charitable Lead Trust
- Gifts of Real Estate
Providing a gift for Trinity-Pawling in your will helps build the School's endowment, which provides a stream of operating income to Trinity-Pawling 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 it 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 Trinity-Pawling 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 Trinity-Pawling of all rights in the insurance policy. You would be allowed an immediate federal income tax charitable deduction.
The IRA Charitable Rollover provides you with an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate. An IRA charitable distribution is a terrific way to make a gift to Trinity-Pawling School. If you are 70½ years or older, any amount up to $100,000 can be distributed tax-free from your Individual Retirement Account (IRA). If you make your gift by or before December 31, the amount of your gift can count toward your required minimum distribution (RMD) for that calendar year.
How it works:
- You must be 70½ or older at the time of distribution.
- You may distribute any amount up to $100,000 in a calendar year to Trinity-Pawling.
- Your IRA administrator must make the distribution directly to Trinity-Pawling, or you may write a check payable to Trinity-Pawling from your IRA checkbook.
Please note: Certain restrictions apply and requirements* must be followed when making this type of gift. If you have questions, please contact Colleen Dealy at 845-855-4831. Before proceeding, you should also consult with your tax advisor to discuss your particular situation including any impact of your state’s tax laws.
Transfers must be made directly from a traditional IRA account to Trinity-Pawling School. Funds that are withdrawn by you and then contributed will not qualify.
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.
Gifts of Real Estate
Trinity-Pawling accepts gifts of real estate, including personal residences. This type of gift provides an income-tax deduction that frees up tax dollars into spendable income without causing any disruption to your lifestyle. If you’d like to learn more about gifts of real estate, please contact the Office of Advancement.
My father was a Pawling School graduate from the Class of 1923, and I'm a Trinity-Pawling graduate from the Class of 1953. I do not give to Cornell (my alma mater), but I do give to Trinity-Pawling and shall continue to give as long as I can.
Gil Lamb ’53