Planned Giving Options

Gifts may be restricted or designated for a particular purpose, and there is no minimum gift amount. While the disclosure of the amount or type of gift is helpful to St. Margaret's School as we plan for the future, it is not required.

Wills & Bequests

A bequest is an easy way to leave a lasting legacy at St. Margaret’s without affecting your assets during your lifetime. Any bequest made to St. Margaret’s has tax benefits for federal estate tax purposes, as the estate is typically allowed to take a tax deduction for the value of the bequest. There are several different types of bequests which you may want to consider:

Specific Bequest: a gift of a specific asset which is transferred directly from your estate to St. Margaret’s School. Appreciated securities or real estate, art, and personal property are examples of specific bequests.

Outright Bequest: a gift of a designated dollar amount or percentage of your estate. The amount or percentage of the gift is set by you and stated in the terms of your will.

Residuary Bequest: St. Margaret’s can also be named a residuary beneficiary in your will, which means that St. Margaret’s would receive all or a percentage of the estate assets remaining after all specific bequests and other obligations of the estate have been satisfied.

Contingent Bequest: This type of bequest is only fulfilled if certain conditions are met. For instance, if your primary beneficiary does not survive you, you can indicate your next choice through a contingent designation.

Trusts


A Charitable Remainder Trust is an irrevocable trust established to provide payments for the life of one or more people or for a specified term not to exceed 20 years. When the term of the trust expires, the remainder is distributed to one or more qualified charities like St. Margaret’s.

When you establish Charitable Remainder Trust, your assets are transferred to a trust and you or a loved one can receive income for your lifetime from the trust. After your lifetime or that of your designated beneficiary, St. Margaret’s receives the remainder of the assets in the trust.

Charitable Remainder Trusts may be an annuity trust, which pays a fixed dollar amount, or a unitrust, which pays a set percentage of the fair market value of the trust’s assets, to be at least five percent of the fair market value of the trust’s assets as valued annually. Whether annuity or unitrust, both types of payments must be distributed at least on an annual basis, and often are distributed on a quarterly or bi-yearly basis.

A Charitable Lead Trust is a creative way to accomplish family and charitable goals you may have for the distribution of your assets. When you establish a Charitable Lead Trust, your assets are transferred to a trust and St. Margaret’s receives payments from the trust for a specified period of time or for your lifetime. After the term of the trust has expired, the assets are passed back to you or to your designated heirs.

A Charitable Lead Trust may be an annuity trust, which pays a fixed dollar amount, or a unitrust, which pays a set percentage of the fair market value of the trust’s assets, to be at least five percent of the fair market value of the trust’s assets as valued annually. Whether annuity or unitrust, both types of payments must be distributed at least on an annual basis, and often are distributed on a quarterly or bi-yearly basis.

All types of Charitable Trusts give numerous tax advantages, including income tax deductions for the life of the trust, relief from capital gains taxes on appreciated assets placed in the trust, and significant estate tax savings on the assets used to fund the trust. The trust can be tailored to meet your specific financial and tax planning needs and accomplish all the goals you have established for your estate plan and the distribution of your assets.

When considering a gift such as this, you should always consult your attorney and financial planner for advice and guidance.

Gifts of Real Estate

Real estate property such as personal residences, undeveloped land, or farms may be transferred by deed to St. Margaret's School with no liability for income or estate taxes on the appreciation.

Tax benefits for gifts of appreciated real estate are virtually identical to those for gifts of appreciated securities. When the property is deeded to a non-profit organization like St. Margaret’s, the donor does not have to pay capital gains tax on the appreciated property and the gift provides a charitable tax deduction for the full fair market value of the property.

When considering a gift of real estate, you should always consult your tax professional or attorney for further guidance.

IRAs and Pension Plans

Your estate can save both income taxes and estate taxes if you make St. Margaret’s a beneficiary of your individual retirement account, pension, 401(k) or other retirement savings plan.

It may seem logical to designate a family member as the successor beneficiary of your retirement plan and use other assets to make a charitable gift. But using retirement assets to make your donation and leaving other assets to your heirs is also an option and can allow you to give more to your heirs.

Non-profit organizations like St. Margaret’s do not pay income tax on the distributions from your plans, and the gift will not be subject to estate tax. The entire amount comes to St. Margaret’s, your estate gets the benefit of the estate tax deduction, and your heirs will benefit from a reduced estate tax burden and receive other assets from your estate.

When designating a non-profit organization as the beneficiary of your retirement plan, IRA, or pension plan, be sure to use the beneficiary designation form of the plan and name the non-profit organization as the direct beneficiary. This ensures that the assets in the plan will pass directly to the organization and not be included in your estate.

When making a decision such as this, you should first contact your plan administrator, and always consult with your attorney or financial planner before changing your beneficiary designation.

Life Insurance

Life insurance policies are another way that you can support St. Margaret’s in a significant way. A tax-deductible gift of a whole or universal life insurance policy can be made by naming St. Margaret’s as owner and beneficiary. You could purchase a new policy or donate a policy that you currently own but no longer need.

A gift of life insurance can also provide a significant charitable tax deduction. To claim a charitable deduction, you must designate St. Margaret’s as both the owner and beneficiary. The full cash value of a donated policy may be deductible, as well as any continuing premium payments that you make.

Check with your insurance agent for further details.

Contact the Development Team with questions about planned giving or if we can be of any assistance to you, your family, your attorney, or your financial planner. If you have already made a planned gift to St. Margaret's and would like to share your generous intent with us, please do so by submitting a commitment form.

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