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Deferred gifts are a popular way to contribute to Agnes Irwin. These gifts may be arranged through trusts, annuities and other estate planning vehicles. If you would like to learn more about these estate planning ideas, or how other alumnae and friends of The Agnes Irwin School have provided for the School in their estate plans, please contact Margaret Welsh, Director of Development at mwelsh@agnesirwin.org or 610.526.1673.
NAMING OF THE LAUREL SOCIETY
MEMBERSHIP IN THE LAUREL SOCIETY
BEQUESTS
CHARITABLE GIFT ANNUITY
POOLED INCOME FUND
RETIREMENT ASSETS
CHARITABLE REMAINDER TRUSTS
CHARITABLE LEAD TRUST
NAMING OF THE LAUREL SOCIETY
An adventure began in 1998 to name Agnes Irwin's bequest and planned giving society, and, like many wonderful journeys, the search led home. Surrounding the School's lamp emblem are two graceful branches of laurel. Laurel trees and shrubs are evergreen, and their handsome, large, glossy, aromatic leaves have been cherished for centuries. In ancient times, sprigs of laurel were chosen to make the crowns that were conferred as a mark of great honor and distinction.
Agnes Irwin is dedicated to developing each student's highest potential in intellect, character and well being. By remembering Agnes Irwin in their wills and by making other kinds of planned gifts, Laurel Society members are keeping the lamp fire burning for future generations. The Laurel Society honors them for their commitment, generosity and vision.
MEMBERSHIP IN THE LAUREL SOCIETY
The Laurel Society recognizes the alumnae, parents and other members of the Agnes Irwin family who establish a deferred gift arrangement with The Agnes Irwin School. Planned gifts include bequest intentions, charitable remainder trusts, gift annuities, the pooled income fund, and other forms of deferred support. A bequest intention or planned gift of any size qualifies a donor for membership in the Laurel Society. Unrestricted gifts are usually added to the School's endowment. Other gifts may be made to a variety of established funds, or the donor may wish to establish and name a new fund. These naming opportunities may be discussed with representatives of the School at the donor's convenience.
Open the Planned Gift Calculator to see how establishing a planned gift with Agnes Irwin may benefit you!
Membership in The Agnes Irwin School Laurel Society is a testament to your commitment to the education of girls and perpetuates your legacy with the School. Providing for The Agnes Irwin School in this way helps to deepen a vital tradition of philanthropy, which sustains the School. Laurel Society members receive a gold laurel leaf pin, a design based on the laurel branches that surround the School's lamp emblem. Membership includes invitations to the Laurel Society Reunion breakfast and other special events.
BEQUESTS
One of the easiest ways to join the Laurel Society is to designate The Agnes Irwin School as a beneficiary in your will. If your will is already written, you may add the School as a beneficiary by instructing your attorney to include a codicil (an amendment) to your bequest intentions. Wills and codicils typically include language such as:
"I give and bequeath to The Trustees of The Agnes Irwin School of Rosemont, PA, (the sum of ____ dollars) or (all the rest, residue and remainder of my estate) to be used for the general purposes of the School at the direction of its Board of Trustees."
You may specify that an exact dollar amount, a particular asset, or a portion or all of your residuary estate be given to The Agnes Irwin School. You also may specify that you would like The Agnes Irwin School to use all or a part of your bequest to first provide a life income for a family member.
CHARITABLE GIFT ANNUITY
A Charitable Gift Annuity will provide you a guaranteed fixed quarterly income for life, while also allowing you to make a significant gift to The Agnes Irwin School. Annuity payments are backed by the school's endowment and are guaranteed, regardless of fluctuations in the stock market or interest rates. In addition to a steady income, a gift annuity provides valuable tax benefits. It entitles you to a charitable income tax deduction, favorable tax treatment of a portion of the payments you receive, and a potential estate tax savings. The Agnes Irwin School accepts gift annuities in the amount of $10,000 and higher, and offers all alumnae and friends of the school, age 68 and older, the same income rate of 6%.
Here's how it works:
If a 72-year-old alumna establishes a 6% Gift Annuity for $100,000 with The Agnes Irwin School, and she uses appreciated securities to fund the gift, The Agnes Irwin School will pay her 6% of $100,000, or $6,000 per year, in quarterly installments of $1,500, for her lifetime. In addition, she will receive a charitable deduction of about $40,000, and because she used appreciated stock to establish her gift annuity, she avoids the capital gains tax on a portion of the appreciation. On her death, the annuity principal will be added The Agnes Irwin School's scholarship endowment, or other endowed fund, exactly as she has designated.
POOLED INCOME FUND
The Agnes Irwin School Pooled Income Fund operates like a "charitable mutual fund," and will provide you or up to two beneficiaries income for life. You receive income based on the performance of the Pooled Income Fund, not on a set rate of return. The School combines your gift (minimum gift of $10,000, and subsequent gifts of $5,000), with those of other donors. The funds are invested jointly, in a mix of bonds and equities, and each contributor receives a pro rata share of dividend and interest income. You will receive a charitable income tax deduction for a portion of your gift in the year you make it, with up to five additional years to take any unused portion of the deduction. The Fund is currently paying between 4% and 5%.
RETIREMENT ASSETS
Gifts of retirement plan assets may be particularly appealing because these assets are often subjected to several taxes: (1) federal income tax; (2) federal estate tax [upon your and your spouse's death], and (3) state income and estate taxes. This can generate leaving only 25 cents on the dollar available for one's heirs. There are several ways to give these retirement assets to The Agnes Irwin School: (a) name Agnes Irwin as the primary or secondary beneficiary of your plan by contacting your plan administrator and completing a new beneficiary form; (b) take structured withdrawals from your plan, beginning at age 59 1/2 or 70 1/2 and make outright gifts to the School that generate an offsetting charitable deduction; and (c) set up a Charitable Remainder Trust in your will into which you transfer any residual in your retirement plan at your death, naming your surviving spouse or children as income beneficiaries for life or a term of years and The Agnes Irwin School as the charitable remainderman. The Agnes Irwin School, under any of these arrangements, will receive a full dollar for every dollar remaining in your retirement account.
CHARITABLE REMAINDER TRUSTS
A Charitable Remainder Trust (CRT) is a separately invested and managed charitable trust that pays income to you, or to beneficiaries you name, for life or a term of years. At the termination of the trust, the principal goes to the School. A CRT provides unusual flexibility. You can use a variety of assets to fund a CRT: cash, publicly traded stocks and bonds, closely-held stock, real estate, and, in some instances, tangible personal property, such as works of art. You can tailor it to suit your needs: build retirement income, generate a higher income from assets you currently own, or provide for your spouse, family members or other beneficiaries. You can name a bank, Agnes Irwin or yourself as the trustee.
Open the Planned Gift Calculator to see if a gift annuity is right for you!
There are two basic types of Charitable Remainder Trusts:
(1) A Unitrust (CRUT) which pays a variable income (typically between 5-7% per year) based on a fixed percentage of the trust assets as revalued once a year. One advantage of a unitrust is that your income can increase as the trust principal grows over time. Also, you may make additional contributions to the unitrust principal at any time.
(2) An Annuity Trust (CRAT) which gives you the opportunity to choose to receive a fixed dollar amount from the trust each year. Those who are interested in the security of a fixed annual income often prefer the annuity trust. Additional contributions cannot be made to annuity trusts.
CHARITABLE LEAD TRUST
A Charitable Lead Trust (CLT) is a powerful way to make a future transfer of assets to your heirs at a significantly reduced gift and estate tax cost. During a specified number of years, an annuity or a fixed percentage of the trust assets is paid to The Agnes Irwin School. At the end of the trust term, the assets are passed to the beneficiaries you name. There are two types of lead trusts, Non-Grantor and Grantor. In a non-grantor lead trust, the assets revert to your children, grandchildren, or other heirs. In a grantor lead trust, the assets revert to you, rather than to your heirs, at the end of the term. A grantor lead trust may be useful if you wish to accelerate future charitable deductions.
For people who have significant assets, a CLT offers gift and estate tax relief. For example, a non-grantor CLT has these advantages: (1) you receive a charitable gift tax deduction for the annual trust payments to The Agnes Irwin School; and (2) the income earned by the trust is excluded from your gross income and is, therefore, not taxable to you (In effect, this produces a reduction of your taxes over the trust term.); and (3) any appreciation in the assets during the term of the trust is not subject to additional gift or estate taxation. As a result, you can pass on to your heirs a larger estate after taxes than would otherwise be possible. You can fund a CLT with publicly traded securities, closely-held stock, income-producing real estate, partnership interests or a combination of these. You can establish a CLT during your lifetime, as a testamentary trust under your will, or through a pour-over from a "dry" trust established during your lifetime.
The foregoing estate planning ideas, descriptions, and illustrations are provided as an educational service and should not be interpreted as financial or legal advice. Please consult your own financial and legal advisors for the plans and instruments most appropriate to your particular circumstances. | |
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