Estate Planning & Planned Giving Options
Creating a Lasting Legacy
Through estate and gift planning, you can leave a gift to assist the school with current and future needs. Working with the Foundation, your gift can be designated per your wishes. Whether you decide to establish a named scholarship, support the ongoing needs of the operating a private, Catholic high school, or funding a pet project, such gifts ensure an impact that extends beyond one's lifespan.
Naming the Bakersfield Catholic Education Foundation as a beneficiary of your estate is one of the simplest, most direct ways to express support of the future of Garces Memorial High School. A bequest can take many forms including cash, artwork, real estate or making the Bakersfield Catholic Education Foundation the beneficiary of life insurance or retirement accounts.
IRA's are often the most tax favored asset to leave to the Foundation. These accounts are taxed when left to a loved one, but distribute tax-free when a non-profit such as the Foundation is the beneficiary.
For individuals older than 70 1/2, annual distributions from an IRA are a simple way to benefit Garces Memorial and receive tax benefits in return. The law allows gifting up to $100,000 from an IRA directly to a qualified charity - without paying income tax on the money. The distribution an satisfy all or part of the legal minimum distribution requirement each year. The donation generates neither taxable income nor the necessity to itemize deductions on tax returns.
Charitable Gift Annuities
A popular lifetime income arrangement, a charitable gift annuity is both simple and secure. It frees the donor up from the details and uncertainties of investment management while providing non-fluctuation income for life. The gift may be made with cash or appreciated securities and up to two beneficiaries can receive fixed income payments. Possible tax benefits include charitable income tax deduction, payments that are partially income tax-free, and reduced capital gains tax.
Charitable Remainder Trusts
A charitable remainder trust (CRT) offers lifetime income and is well suited to appreciated capital assets, such as stock or real estate. A CRT pays a variable annual amount, with the potential to provide a growing income stream. Tax benefits include a charitable income tax deduction at the time the trust is set up, avoidance or reduction of capital gains tax, and tax-free growth of the the trust principal.
Charitable Lead Trusts
A charitable lead trust is a good way to give financial support to Garces Memorial while providing a gift to your heirs at a lower tax cost. An appreciated assets is set up in a trust with the Bakersfield Catholic Education Foundation for a term of years, during which the Foundation receives income from the trust. At the end of the term, the remainder (the principal plus any appreciation) returns to your family or designated heirs. Charitable lead trust include the following benefits; payments to the Foundation are deductible from the trust's taxable income; any increase in asset value may pass to your heirs free of estate and gift taxes; and the asset returns to your heirs at a reduced rate.
Contributions of appreciated stocks are a form of outright giving that allow a full deduction for the value of the stock given while avoiding taxes on any capital gains.
Additional outright gift opportunities include real property, such as a residence, commercial property, or undeveloped land. An undivided interest in appreciated real estate can be contributed shortly before its sale with the donor obtaining a charitable deduction for the value of the interest given without having to pay taxes on the capital gain on the portion given.
Retained Life Estates
Transferring title of land or a residence to the Foundation provides several benefits: continuing to live there for life or a specified term and receiving credit for the donation and an income tax credit. Donors may terminate the life estate at any time, with the ownership passing to the Foundation, and take an additional income tax deduction.
The Foundation may also be named as beneficiary of life insurance policies and annuities. If no longer needed by the donor, they can be donated to the Foundation. Another option is for the donor to give the life insurance policy or annuity to the Foundation and continue to pay the premiums. In these situations, the premium payments represent charitable contributions and the policy or annuity is excluded from the donor’s estate, thereby avoiding estate taxes.
Donors are advised to check with his or her tax advisor prior to making a significant gift to the Foundation.