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There are several easy ways to remember and honor
Naples Christian Academy in one’s will. The Academy
may become a beneficiary through a specific bequest,
a contingent bequest, or a residuary gift. An example
of a specific bequest would be: “I leave $20,000 to
Naples Christian Academy.” A contingent bequest could
be something like “I bequeath my property on Harbour
Drive to Naples Christian Academy should I have no
family living to inherit the land.” An example of
a residuary gift is “I give the rest, residue, and
remainder of my estate to Naples Christian Academy
to be used for its general purposes.”
A donor can sell a piece of property to Naples Christian
Academy for less than the value of the property. This
type of transaction is essentially part gift and part
sale. The amount of the gift would be the excess of
the fair-market value of the property over the sale’s
proceeds. The donor would report any gain incurred
on the sale portion of the property and would receive
a charitable deduction on the portion of the property
that was a gift.
A donor may make a gift of a personal residence or
other real estate to Naples Christian Academy and
continue to live there for the rest of his or her
life. Donors receive an immediate income tax deduction
for the value of the remainder interest that will
eventually go to NCA. The charitable income tax deduction
is based on the donor’s age (and the age of any other
lifetime beneficiary) and the value of the property.
In making a gift annuity, a donor transfers cash or
other property to Naples Christian Academy in exchange
for a commitment by the Academy to pay the donor a
specific amount each year during the remainder of
the donor’s life (and/or another beneficiary). This
transaction is both a purchase of an annuity and a
charitable contribution. The amount of the charitable
deduction is based on the donor’s age and the size
of the annuity. A portion of each annuity payment
is tax-free because the donor is allowed to “recover”
the investment in the annuity. In addition, if the
annuity is funded with appreciated property, the gain
is reported ratably over the donor’s life expectancy.
The tax savings generated by the charitable deduction
often offsets any capital gains resulting from the
transfer of appreciated property for a gift annuity.
A donor can create income for life or for a period
of time up to 20 years by transferring assets to a
trust that pays the donor or another beneficiary an
income amount annually. Later, the assets of the trust
are given to Naples Christian Academy. A donor receives
a charitable deduction the year the trust is created
based on the donor’s (and any other income beneficiary’s)
age and the amount to be paid. No capital gains are
incurred when appreciated property is used to fund
a charitable remainder trust. Charitable remainder
trusts can be established by a will.
A charitable lead trust works in the opposite manner
of a remainder trust in that the donor gives property
to a trust, creating an income interest in favor of
Naples Christian Academy for a period of years, and
then the remainder interest either reverts to the
donor or is given to non charitable beneficiaries
or family members. A charitable lead trust is a creative
way to make annual gifts to NCA while transferring
property that is about to appreciate to children or
grandchildren at a reduced tax value. Charitable lead
trusts can be established by a will.
If a donor owns a life insurance policy, the donor
may give it to Naples Christian Academy and name the
school as beneficiary. Donors will receive an income
tax deduction for the cash value of the policy plus
any premiums the donor continues to pay. NCA will
receive the future proceeds from the policy.
Information on this page is deemed
reliable; however, it must not be used as definite
information for estate planning or tax planning purposes.
Please consult your estate planning attorney or tax
advisor before making planed giving decisions.
A COPY OF THE OFFICIAL
REGISTRATION AND FINANCIAL INFORMATION MAY BE OBTAINED
FROM THE DIVISION OF CONSUMER SERVICES BY CALLING
TOLL-FREE (1-800-435-7352) WITHIN THE STATE. REGISTRATION
DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION
BY THE STATE. #CH16852
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