Providing for the future well-being of family, and, at the same time, supporting the educational mission of St. Anselm’s Abbey School can be accomplished by a variety of gifts known as planned gifts. St. Anselm’s Abbey School can assist you with designing a gift that will further your philanthropic goals, while reducing or eliminating income, gift, and estate taxes.
Planned gifts, such as bequests and income-producing gifts, can provide benefits to family now, and in the future, and are gifts that will live on, benefiting St. Anselm’s Abbey School for many generations to come. Other gift opportunities, including the use of retirement assets, allow for maximizing the current and future benefit to both family and St. Anselm’s.
Major Types of Planned Giving:
- Income-Producing Gifts
- Retirement Funds
- Other Giving Opportunities
After providing for your loved ones, a provision in your will to leave a gift to St. Anselm’s Abbey School will give you a great deal of satisfaction, knowing that your future gift will help St. Anselm’s students for generations to come. Gifts through wills are popular because they are both easy to arrange and can be changed at any time. Charitable bequests can include cash, securities, real estate, or other property, and may be identified specifically, as a percentage of your entire estate, or that part of your estate that remains after making specific bequests.
Estate Tax Savings
Your charitable bequest, in any form, is free from Federal estate tax and may significantly reduce taxes assessed against your estate. This means that St. Anselm’s will be able to use the full amount of the gift, whereas gifts to others may be substantially reduced by the estate taxes imposed.
Choosing How Your Bequest Will Be Used
The choice is yours:
Making Your Bequest
Making a new will, or changing your current will should be done with the assistance of your attorney. A St. Anselm’s Abbey School advisor will be happy to provide assistance to you and your attorney.
By making a gift through your will, you will know that your generosity will touch countless generations of future students at St. Anselm’s Abbey School, assuring the availability of the highest quality education in the 1500-year long Benedictine tradition for academically gifted young men.
One type of gift plan actually gives income back to you. You are able to make a significant gift to the school during your lifetime, and use those very same assets to provide income to yourself and your beneficiaries. in many cases, this results in a larger income than the assets would otherwise earn for you.
Tax and other advantages of Income-Producing Gifts
Because the school's investment team will manage the assets, your gift to St. Anselm’s Abbey School will be supporting the education mission of the school for generations to come. You may receive significant tax advantages, such as an immediate charitable income tax deduction, an avoidance of immediate capital gains taxes upon sale of appreciated assets, and eventual estate tax savings.
Gift with a Variable Income
A Charitable Remainder Unitrust is one in which the income from the trust varies with the value of the assets held in the trust. As the value of the unitrust assets grows, the income paid to you or others you select increases proportionately. However, if the value of the assets declines, the amount of income will decrease also.
Gift with a Fixed Income
A Charitable Remainder Annuity Trust is very much like the unitrust, except that with the annuity trust you receive a fixed income each year. The dollar amount of the income is set as a percentage of the amount originally placed in the trust. The advantage of this plan is that your annual income is fixed for the term of the trust and does not vary with the value of the assets held in trust. No additions may be made to annuity trusts.
Creating an Income-Producing Gift
You can make such a gift to St. Anselm’s Abbey School by irrevocably transferring securities, cash or other property to the school (or other qualified party) as the trustee. The trustee then manages the investment and pays an income to you, your spouse, and/or other beneficiaries. The income payments continue for the beneficiary's life, or for a period of years. Thereafter, the remaining trust principal goes to St. Anselm’s Abbey School to support a program that you may choose.
Often retirement funds are accumulated that neither you nor your family will ever use. For such an occurrence you may want to name St. Anselm’s Abbey School as the final (or contingent) beneficiary of a qualified retirement account, causing the funds in that account to be distributed directly to St. Anselm’s upon your death. This gift will not be reduced by estate taxes, and will support the school's mission. Your employer or retirement account manager can easily help you add or change beneficiaries.
Such an estate gift of a retirement account can benefit both you and your heirs. You will retain full control of the funds while you are alive, should you want to use them; and you will avoid paying estate tax on those funds. Additionally, by leaving estate assets other than the retirement funds to your heirs, your heirs will not be required to pay income tax on the transfer of the retirement plan.
To be sure that all pertinent regulations are followed, it is important to obtain the assistance of a qualified professional advisor. If you or your advisors have any questions, please contact the St. Anselm’s Abbey School Development Office.
Other Giving Opportunities
Many people use a revocable living trust to manage their assets while they live. The trust may also continue after death, distributing assets and managing them for loved ones.
You can also make gifts to St. Anselm’s Abbey School with a living trust. You can arrange for a yearly charitable gift to St. Anselm’s out of the earnings of the trust. And, upon your death, you may simply want to bequeath all or part of the remaining assets in the trust as a charitable gift to the school as well.
Charitable Lead Trusts
The Charitable Lead Trust is essentially the opposite of the remainder trusts. Instead of you, the donor, receiving income back from a trust, in a lead trust, the school receives the income interest for a specified number of years. At the end of the trust, the remaining principal is returned to the donor or, more commonly, another family member. The income that is paid to St. Anselm’s may be either a fixed amount (an annuity trust) or a fixed percentage of the annual value of the trust (a unitrust). At the time the trust begins, you or your estate will receive a charitable gift or estate tax deduction for the percentage payable to St. Anselm’s Abbey School.
A lead trust can be especially valuable in estate planning, because although income tax benefits of such a trust are often minimal, the estate and gift tax savings may be significant. Therefore, a charitable lead trust is often set up to begin upon the death of the donor. It may have extra value to family members when the assets are likely to appreciate substantially in value over the life of the trust.
Tangible Personal Property
Over the years, many individuals have given sculptures, paintings, book collections and other types of personal property to St. Anselm’s Abbey School.
A gift of this nature involves various regulations, and the Development Office staff can assist you and your attorney or other professional advisor, if you have specific questions or wish to discuss your particular situation in detail.
Quite often people find that they have more life insurance than they really need. For example, their children may be grown and life insurance that was intended to provide education funds is no longer needed. A gift of a life insurance policy, one that is paid up or one with premiums still due, makes a very good charitable gift. The gift can easily be made by naming St. Anselm’s Abbey School as both the beneficiary and owner of the policy. Normally, your charitable deduction will be approximately the cash value of the insurance policy at the time of the gift. You may even want to purchase a new policy to give to the school.
Appreciated real estate may be one of the best gifts that can be made to the St. Anselm’s Abbey School. From your perspective, as the property owner, the return from the property is often small and operating costs, such as taxes and maintenance, continue to rise. Should you sell the appreciated real estate, you will have to pay capital gains tax on the appreciated amount, considerably reducing your net gain from the sale. If, however, you make a gift of the real estate to St. Anselm’s Abbey School, you may be able to deduct the full market value of the property, including all appreciation.
Please note that there are some legal requirements that you will need to meet in order to make a charitable gift of real estate. The Development Office staff will be happy to assist you and your attorney or other professional advisor to comply with these requirements.
- Unrestricted Bequest: You allow the school to determine where the money is most needed.
- Restricted Bequest: You may choose to support ongoing needs such as: tuition assistance, faculty development, athletics, or construction and maintaining facilities.
Ms. Lisa McCurdy, Esq., Member of the Board of Trustees and a past parent, discusses planned giving.
St. Anselm’s GuildThe society was formed in 2007 to recognize those in the St. Anselm’s Abbey School community who have included St. Anselm’s Abbey School in their estate planning. If you have already done so, or are planning to do so, please let us know so we can say thank you.
St. Anselm’s Abbey School is happy to help you plan the gift that is right for you. For more information, or to be put in contact with a financial adviser with extensive knowledge regarding tax and estate planning issues, please contact us.
Contact the Development Office