WAYS TO GIVE
One of the most important aspects of financial stewardship is often one of the most overlooked elements: your Will. This legal document ensures that your estate is distributed and your family is cared for as you choose. With a Will, your wishes – your will- are carried out.
PAYABLE ON DEATH ACCOUNTS
Payable on Death Accounts are a simple way to designate those who will receive funds upon your death. These accounts allow you to name a beneficiary, including Individual Retirement Accounts, bank accounts, pensions, and more. These accounts often allow you to choose more than one beneficiary.
Payable on Death Accounts allow you to retain your assets for emergencies while helping reduce your estate taxes. Since you are considered the owner of your account, you can cancel or change it as you wish. Unlike Wills, Payable on Death Accounts do not involve probate, allowing for quicker distribution. Also, since it is a private account, your distributions remain private unlike a public Will.
Most people purchase Life Insurance to provide for their children, to protect their home mortgage, or to secure retirement funds. As people age, they often find that they no longer need financial protection in these areas. If that describes you, consider how our Life Insurance policy could help Norwalk Catholic School/St. Paul High School.
There are a number of ways your Life Insurance policy can support the work of Norwalk Catholic School/St. Paul High School. For example, you can name the school the owner and beneficiary of your policy, you can name it as a secondary or co-beneficiary, or you could assign your annual dividends to NCS/SPH. You will receive varying tax benefits depending on the method of giving you choose for your Life Insurance.
Retirement Assets are tax-deferred retirement savings accounts, including profit sharing, IRAs, 401(k), 403(b), and Keough and pension plans. You can give Retirement Assets now or in the future. While there are penalties for early withdrawals from these types of tax-deferred accounts, if you give the money to charity, there should be no withdrawal penalty (if you are older than 59 and ½). You would still be liable for income tax on the amount withdrawn. Another option would be to give your Retirement Assets upon your death. This helps avoid both income and estate taxation. As a nonprofit organization, Norwalk Catholic School School/St. Paul High School receives the full amount from your Retirement Assets. You can also support NCS/SPH by designating the school as primary or contingent beneficiary.
Any type of Real Estate you own can be donated to Norwalk Catholic School/St. Paul High School: house, farm, rental property, business property, land, vacation home, and more. Real Estate donations, however, must be readily marketable and without environmental contaminants.
By donating appreciated Real Estate, you gain a significant tax advantage because you may be able to avoid all capital gains tax. Your charitable contribution deduction is for the appraised value of your property. If the value of your Real Estate has decreased, you can deduct long-term capital loss by first selling the property and then donating the proceeds. You can also use Real Estate to set up a Revocable Living Trust, an Irrevocable Deferred Gift or a Deferred Gift, or a Deferred Life Estate Gift.
Stocks, bonds, and mutual funds are the most common type of Securities in a person's portfolio. If you are looking to give Securities, it's important to know if they have increased or decreased in value since you purchased them. If your Securities have increased in value over time, giving the Securities directly will enable you to avoid capital gains taxes while potentially providing a charitable deduction for the fair-market value of your gift.
In circumstances where your Securities have depreciated, you will be better off selling them and donating the proceeds. This allows you to receive a deduction for your capital loss plus a charitable contribution deduction for the amount given.
With a Gift Annuity, your donation of cash or securities not only supports Norwalk Catholic School/St. Paul High School, it provides you with regular payments over your lifetime. The size of these fixed payments is based on, among other factors, the size of your gift and your age at the time of the gift. Payments can be deferred, allowing for a larger charitable deduction and greater Annuity benefits.
Gift Annuities provide substantial tax advantages and flexibility. You receive a tax deduction the year our gift is made, and a portion of Annuity payments is nontaxable. Because Annuities cannot be legally changed, great care should be taken to ensure that you have other means to meet any emergency needs.
CHARITABLE REMAINDER TRUST
Also known as a Unitrust, a Charitable Remainder Trust is a custom designed, individually managed trust. It enables you to retain a variable income for your life (or a fixed number of years), claim a current income tax deduction, and make a future gift to Norwalk Catholic School/St. Paul High School.
The Charitable Remainder Trust can make payments to you and a spouse or loved one in several ways. The most common is paying a fixed percentage, but there are other options.
The Charitable Remainder Trust is an irrevocable agreement. Once you enter the Trust, the terms cannot be altered by you or the trustee. For this reason, make sure that you retain sufficient resources to meet your emergency needs.
REVOCABLE LIVING TRUST
A Revocable Living Trust provides you with an arrangement for management and distribution of your assets, helping create a financial plan that can provide for your needs and make an eternal impact. These Trusts do not replace a Will, but they do help determine how your assets will be distributed upon death. Assets in a Trust do not go through probate, potentially saving time and money.
A Revocable Living Trust provides for investment management while you are living and allows for withdrawals or transfers from the trust. A Trust is a legal arrangement, and the trustee is responsible for holding and investing your assets, collecting income, paying normal expenses, and distributing net income. Your written instructions drive all transactions.
For more information contact:
93East Main St.
Norwalk, Ohio 44857
419-668-7223 ext. 276