Types of Planned Gifts
Learn some of the benefits of different types of planned gifts:
Gift of Remainder in Real Estate
Bequest: A provision in your will or in a codicil to your will that provides for a transfer, at death, of a specified amount or a percentage of your estate to Breck School. Read about the five types of bequests.
- Benefits to you: You receive an estate tax charitable deduction.
- Benefits to Breck: Breck receives the bequest in the form of cash, securities or real estate at your death.
Charitable Lead Trust: A trust you create that pays an income stream to Breck for a specified term of years. When the trust terminates, the principal goes to persons (often children or grandchildren) whom you designate.
- Benefits to you: You do not incur an income tax on the income stream paid to Breck; and your gift tax, on the principal passing to your designated beneficiaries, is reduced or eliminated.
- Benefits to Breck: Breck receives an income stream each year during the term of the trust. This income stream can be either a fixed amount (an annuity) or a specified percentage of the principal revalued each year (a uni-interest).
Charitable Remainder Trust: The reverse of a charitable lead trust. An income stream is paid to you or to someone you designate (often a spouse or child) for a specified term of years or for life. When the trust terminates, the principal goes to Breck School.
- Benefits to you: The trustee, whom you select, can sell the trust assets without incurring a capital gains tax and reinvest the proceeds to provide a higher annual return. You receive an immediate income tax deduction for the value of the principal to the school.
- Benefits to Breck: Breck receives the principal of the trust at the end of the specified term.
Gift of Life Insurance: The transfer of the ownership of a life insurance policy, on your life, to the school. You agree to continue to pay any premiums due after the gift.
- Benefits to you: You receive an income tax deduction for your investment in the policy and for any premiums you pay subsequent to the gift.
- Benefits to Breck: Breck receives the death benefits under the policy upon your death.
Gift of a Remainder in Real Estate: The donation of a residence (including a vacation home or farm) to the school subject to your right to occupy the property for the rest of your life.
- Benefits to you: You receive an income tax deduction, when the arrangement is created, for the value of your deferred gift.
- Benefits to Breck: Breck receives the property upon your death. The property may be used or sold.
Gift of Retirement Assets: A deferred gift to Breck, of any balance remaining at your death in your IRA, 401(k), or similar retirement plan.
- Benefits to you: The amount passing to Breck is not subject to either income or estate tax. (Left to a beneficiary, the inheritance would be subject to both income and estate taxes.)
- Benefits to Breck: Breck receives the balance remaining in the plan after your death.
