Preserving the Future…What we
, may secure the future for
Palma’s Legacy Society
The Legacy Society is a way
to recognize our alumni, parents, grandparents and friends who have included Palma
School in their estate plans. Legacy
Society members acknowledge the importance of providing future support for the
programs of Palma School.
Planned Giving Opportunities
- A bequest is a simple yet deeply meaningful way to make a gift to Palma
School. Made as a part of your
will, you can make it for a specific amount or as a percentage of your estate The advantage of making a gift through a bequest is that gift
and estate taxes are reduced or avoided.
Insurance - The contribution of a life insurance policy can provide a
significant gift in a manner that can be especially attractive to younger
donors. By designating the school
as both the owner and beneficiary of a life insurance policy, the premiums or
the value of the policy at the time of donation may be tax-deductible to the
Gift Annuities - Charitable Gift Annuities are a simple way to give money
to the school, receive a guaranteed income for life and take an immediate tax
charitable gift annuity (CGA) is a type of life income gift that pays a fixed
amount for life in exchange for an irrevocable gift to SFS. The amount of
income to the donor (the annuity rate) is determined by the donor’s age and/or
the age of another income beneficiary. The rate is typically governed by the
American Council on Gift Annuities. These rates change occasionally.
- A gift annuity qualifies for
immediate tax benefits. A portion of the gift is deductible as a charitable
contribution, and a portion of the income received each year is tax-free. Also,
if the gift annuity is funded with long-term appreciated securities, the donor
may also receive additional tax advantages. For example, any reportable capital
gain on the gifted asset is spread over the term of the gift annuity rather
than all in the same year.
Charitable Gift Annuity - Similar to a CGA but allows the
donor to defer the income until a later date, such as retirement, while
benefiting from an immediate income tax deduction. The donor may determine the
deferral period (which must be at least one year from the date of the gift).
The annuity rate and corresponding income is typically higher than with a CGA,
once the payments begin.
Trusts - Like Gift Annuities, an easily established charitable trust can
provide a current charitable deduction for you in addition to income for you
and/or Palma during your lifetime. Trusts can be especially appealing because they have the potential to
increase in value over time for both the donor and the charitable beneficiary.
Life Estate (or Life Estate Reserved) - A donor may make a gift of his or
her personal residence and retain the right to live on the property for life.
By deeding the home to Palma School while the donor is living, he or she is
entitled to a significant tax deduction in the year of the gift. The amount of
the deduction depends on the value of the property and the donor’s age (and the
age of any person given life use). The donor continues to be responsible for
maintenance, insurance and taxes on the property. The retained life estate may
apply to a principal residence, farm or vacation home.
Rollover - Palma School may be named as a
primary or partial beneficiary of a retirement fund balance (Traditional or
Roth IRA, 401(k)). Unlike a
non-charitable beneficiary, a charity generally will owe no federal or state
income taxes (often times these taxes can eat away at over half of the
accumulated assets) on such a gift that would be taxed as income if received by
an individual beneficiary following the plan contributor’s death. This
designation can be made through your accounts manager.
Insurance - A donor may name Palma School as a
primary or contingent beneficiary of a life insurance policy. If you retain any
control over the policy, no income tax deduction is allowed; however, if Palma
School is named both the sole owner and beneficiary of a paid up policy, you
may receive an immediate charitable deduction for the lesser of the policy’s
fair market value and the net premiums paid. Additional premiums that you pay
may also be tax deductible
Do you want to help
continue our work, but can’t right now?
Consider a gift to us in your will or living trust. Called a charitable bequest, this type
of gift works well for people who believe in our cause but can’t part with
money today. Plus, it has these
Simplicity. Just a few sentences in your will or
trust is all that is needed. We
can give you the correct wording to use.
Flexibility. Because you are not actually making a
gift until after your lifetime, you can change your mind at any time.
Versatility. You can structure the bequest to leave
a specific item or amount of money, or leave a percentage of your estate to us.
Relief. When you make a gift
to Palma School in your will, your estate is entitled to an estate tax
charitable deduction for the gift’s full value.
Should a bequest be a
specific dollar amount or a percentage of the value of your estate?
Making bequests of a percentage of the value of your estate
is often the best way to carry out your objectives because it’s sometimes
difficult to determine what size donation will make sense. Emergencies happen, and you need to
make sure your family is financially taken care of first. Including a bequest of a percentage of
your estate ensures that your gift will remain proportionate to your estate
size, no matter how it fluctuates over the years.
For a more complete explanation of possible ways to leave assets, please
contact the Advancement Office