Estate Planning

Estate Planning

If you are like other people in this day and age, supporting charitable organizations is important to you.  While you may have substantial cash or appreciated securities to donate, you may not want to give up the annual income you currently earn on your assets. Or you may have CDs coming due and are faced with lower rates. Today, many donors wonder “How can I give in a way that makes financial sense for my family and me?”

There is a way to give that has been around for over 100 years that can help donors who want to make larger gifts, but can’t afford to reduce their cash flow. That gift is the charitable gift annuity. It gives you the security of a fixed annual payment during your lifetime, while also allowing you the opportunity to make a gift to St. Rita School for the Deaf. You can even include a second beneficiary, such as your spouse, to receive the income after you.

 

How does the Charitable Gift Annuity work?

 

With a charitable gift annuity, you make an irrevocable donation of cash or appreciated securities to St. Rita School for the Deaf. In return, you receive the guarantee of a fixed payment as agreed to by you and St. Rita School for the Deaf. Your contribution minus the cost of the annuity is the basis of the charitable tax deduction you receive.

There are several option available for receiving your income. For example, you can choose to begin your annuity income payments immediately, or you can have them deferred until a later point in your life. This can be quite an advantage if you are younger and are worried about having enough money during retirement.

 

What are the tax advantages?

 

You will receive an immediate charitable deduction on a portion of the donation. The amount is computed from IRS tax tables base on the age of the income beneficiaries. If the gift is made of appreciated securities, the capital gains are spread out over a period of time for income tax purposes. You will want to consult your tax advisor for the specific tax advantages of your charitable donation.

 

Who determines how the Charitable Gift Annuity is invested?

 

The investment professional at Fifth Third will manage the charitable gift annuities, drawing on their extensive experience as consistent quality growth investment managers. The investment decisions will be made within guidelines established by St. Rita School for the Deaf. Fifth Third will also handle the administration of your gift, including the distribution of the payments by check or direct deposit.

 

Advantages of Charitable Gift Annuities

For You:

=         Fixed Income – your gift annuity will provide regular payments for your life.

=         Payment Dates – your quarterly annuity payments can begin now or at a future date to supplement your income in the future.

=         Tax Free Payments – a portion of each payment from the annuity is tax free.

=         Save Income Taxes – when funding the annuity, you are entitled to an income tax deduction for the gift portion of the transferred assets.

=         Guaranteed – your payments are guaranteed by St. Rita School for the Deaf. Fifth Third Bank will handle the administration of your gift as well as the distribution of your payments.

=         High Rates – your rate of payment is based upon your age. 

=         No Limit – to the number of annuities you can hold. Funding annuities annually allows you to take advantage of rate increases.

 

For St. Rita School for the Deaf:

=         Your Legacy Lives On – Your gesture ensures that our tradition of educating children who need special methods of communication will continue into the future.

=         We appreciate the opportunity to know of your commitment to support our work while you are living.

 

Bequests:

The most popular legacy gift is the simple charitable bequest in your will or living trust. A charitable bequest lets you retain control over the property. You also have flexibility in what you bequest. You can leave a specific amount, a percentage of your estate, or what remains of your estate after you’ve provided for family.

Good planning can magnify the impact of what you give. If you wish to make a bequest, it’s important to let us know so that we can provide the most appropriate legal language to you and your advisors. This will ensure that any designated use of your bequest is clearly outlined and understood.

Leaving a bequest to St. Rita School for the Deaf creates a life-changing legacy of hope for our students. Making your wishes known through a will assures that your intentions are fulfilled and allows you to plan your gift for the greatest legal and tax advantage to your heirs.
 

Plan a Gift:  

Careful planning can ensure that you realize maximum benefit from your giving.  For instance, equity donations - stocks, bonds, mutual funds and other properties can provide support for St. Rita School while accruing multiple tax advantages for the donor.  Contacting your financial advisor or calling St. Rita School for the Deaf for a referral is the first step toward sound planned giving.

St. Rita School for the Deaf is a registered 501c(3) organization.

For more information on supporting St. Rita School for the Deaf, please contact Hap Durkin, Director of Development at 513-771-7600 ext. 324 or hdurkin@srsdeaf.org

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