Funding
·
Annual
Dinner - Every November, a formal dinner is held at the Maronite Center to
raise funds for the Foundation.
·
Memorial
Contributions
·
Estate
Plans
2.
Gifts of Retirement Plan
Assets
For
more information on the role "The St. Maron Education Foundation" can
play in helping you through your planning, contact one of the committee members
listed on our home page.
Many people think estate planning is only
for the very rich. But
actually, the more modest your estate, the greater the need to arrange for its
careful handling and disposition.
The tools of estate planning ensure that
the job is done right.
1.
A
will
2.
Trusts
3.
Life
insurance policies
4.
Buy-sell
agreement
5.
Deferred
employee benefits
The first step of every estate plan is
compiling an inventory of personal data.
This includes the current value of all your assets, how they are owned,
your liabilities, and names and addresses of intended estate beneficiaries.
This is also the time to indicate those
charitable institutions that are to receive a bequest in your will.
Without a plan, your loved ones are forced
to pick up the pieces of a confused financial puzzle when illness strikes or an
accident occurs. We urge you to take the
first step now to activate your plans for the future of your estate.
2.
Gifts of Retirement
Plan Assets
Did you know that your retirement plan
assets are facing double taxation? If
you leave the assets to your heirs, you will generate "income in respect
of a decedent." So not only is the
amount diminished by estate taxes, but the recipient also must pay income taxes
on it!
Undoubtedly, your decision of who gets the
remainder depends on your family members' circumstances; their needs come
first. But, if you can make other
provisions for them, there is a better option for your retirement plan assets -
a charitable gift. This could result in
a tax savings of over 50% to you and your heirs.
The bargain sale rule in tax law applies
when you sell property to a qualified charitable organization at a price below
its market value. The difference between
the market value and the price you get from us qualifies as a charitable
contribution.
Key results:
·
Income
tax savings
·
Capital
gains tax reduction
·
Receive
cash promptly
If you are considering a significant
charitable gift, you should look first to your stock portfolio. Often stocks have appreciated in value by so
much that potential donors do not realize how much they have.
People who invested in stock at age 30 are
often quite surprised by how much the stock has increased by age 70. They find it rewarding to make a substantial
gift for what essentially amounts to a small expenditure in their minds - the original
cost of the stock. Yet you deduct the
current market value.
If you are unable to make an outright gift
of stock because you still need the continued income, you can make a
life-income gift. This will pay you an
income, often for the rest of your life.
At the end of that time, the asset is transferred to the charitable
organization.
There are two types of charitable remainder
trusts: the annuity trust and the unitrust. The trust
must first pay a flow of income to you and any other individual you name. At termination, all assets of the trust must
pass to a qualified tax-exempt organization such as ours.
·
Annuity trust: You
receive a fixed sum each year, which can be expressed either as a dollar amount
or as a percentage of the net fair market value initially placed in the
trust. With this type of charitable
remainder trust, you have the security of knowing that you receive the same
dollar amount annually, no matter what the trust actually yields.
·
Unitrust: You receive payments each year determined by
multiplying a fixed percentage by the fair market value of the trust assets, as
revalued each year. With the unitrust, you have a built-in hedge against inflation
because if the value of the trust increases, so do your annual payments. The annual payments are guaranteed by the
charity assets and you get an immediate tax deduction.
Suppose you would like to give us an income
from certain assets for a number of years, and then you want the principal to
be given to your family or returned to you.
That describes a charitable lead trust.
There are two types of lead trusts:
·
Guaranteed annuity interest: The trust pays us a fixed dollar amount
annually for the term of the trust. The
trust can last for the number of years you specify or for the life of one or
more individuals you name.
·
Unitrust interest: The trust pays us an amount each year
determined by multiplying the fair market value of the trust assets by a
specific percentage. The amount is
computed anew annually, using the current valuation of the assets. Here again, the term of the trust can be
limited either by number of years or by certain lives.
In both cases, the income to the trust is a
tax deduction to you on the gross basis.