Westminster has grown and prospered due to the thoughtfulness and generosity of those who included the school in their estate plans. In particular, the largest gift the school has received came in the form of a bequest.
Gift planning springs from a charitable motivation. How to make a gift; when to make it, and what assets to gift are three essential considerations for planning. Given the many tax advantage ways to make a gift, the process of gift planning involves finding the best way for an individual to carry out his/her charitable intent.
To honor and recognize individuals who have made provisions in their estate plan for Westminster, the Cornerstone Society was established. Individuals who have made such ultimate gifts have done so through bequests, life-income arrangements, naming Westminster as the beneficiary of an individual or group life insurance policy or retirement assets. While all of these gift options provide attractive tax considerations, these arrangements also provide future support for the school. The following are the types of gift arrangements that the school encourages:
Bequests
The most common form of a planned gift is a bequest. Most bequests are in the form of a specific amount or a percentage stated in a will. For younger families, a contingent bequest may be more appropriate.
Life-Income Options
Charitable Gift Annuities are a simple contract between you and the school. Specifically, in exchange for a gift of cash or securities, the school guarantees to pay you a fixed income for the rest of your life. In return, you are entitled to a charitable deduction as well as reduced estate taxes.
Charitable Remainder Trusts are vehicles where a donor places securities or cash into a trust that will pay an annual income to the donor for the term of the trust or for the donor’s lifetime. A charitable deduction is available when the trust is funded and the asset is considered outside of the donor’s taxable estate. At the termination of the trust, the remainder goes to the designated charitable entity named in the trust document.
Charitable Lead Trust is the mirror of a charitable remainder trust. When the trust is funded, charitable gifts must be made annually for a specified number of years. The trust is entitled to a charitable deduction each year. When the term of the trust expires, the remainder of the trust goes to the beneficiaries named. This is a wonderful vehicle for those people who are trying to pass along assets to children or grandchildren with reduced tax consequences.
Life Insurance
A common way to remember Westminster is to name the school the beneficiary of the policy. The same could be done with group life policies offered by employers. Also, it is possible for donors to gift paid-up policies to the school. For more information, please do not hesitate to contact the school.
Retirement Assets
It is possible to name Westminster the beneficiary of your retirement assets. It is important to keep in mind that these assets are taxed heavily by the government, which makes it an ideal option for gifting purposes to Westminster.