There are many ways to support The Calhoun School, and there are many reasons to do so in the form of a planned gift--whether for the tax benefits that planned gifts offer, the financial flexibility they afford, or the lasting legacy they can help a donor leave behind. No matter what your goal, there is a type of planned gift that will allow you to make a significant impact on Calhoun through your estate plan.
Bequests: Naming Calhoun as a beneficiary in your will or in a codicil to your will. Most planned gifts are bequests. They allow a donor to make a larger contribution after death than is generally possible during their lifetime. The donor receives an estate tax charitable deduction for this gift.
Charitable Lead Trust: A trust created by the donor that provides an income stream to Calhoun for a specified term of years. When the trust terminates, the principal goes to beneficiaries chosen by the donor. The donor does not incur income tax on the income stream paid to the School. The gift tax, on the principal passing the beneficiaries, is reduced or eliminated.
Life Income Gifts (Charitable Remainder Trust or Charitable Gift Annuity): A trust or annuity created by the donor that provides an income to the donor's beneficiaries for a specified term of years. When the trust or annuity terminates, the principle is paid to Calhoun. The donor receives an immediate income tax deduction for the value of the deferred gift of the principal to the School.
Life Insurance Plans: The transfer of ownership of a life insurance policy on the donor's life to the Calhoun School. The donor continues to pay any premiums after the gift is made, for which they receive an income tax deduction. The total investment in the life insurance policy is also tax-deductible.
Retirement Assets: Naming Calhoun as a beneficiary of the any balance remaining in an IRA, 401(k), or other retirement plan at the time of death. The amount that is gifted to Calhoun is not subject to income tax or estate tax (as it would be if left to an individual).
Remainder in Real Estate: A gift of real estate (such as a home or a vacation home) that allows a donor to reserve the right to live in and use the property for the rest of his or her life. The donor receives an income tax deduction for the value of the deferred gift. Calhoun receives the property upon the donor's death.
The material presented here is intended as general educational information on the topics discussed herein and should not be interpreted as legal, financial or tax advice. Please seek the specific advice of your tax advisor, attorney and/or financial planner to discuss the application of these topics to your individual situation.