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Planned Giving
The following methods are available to those who wish to make planned gifts to the Williamson School:
For additional information, or to request a booklet on any of these topics, please contact Sylvia Bastani by e-mail at sbastani@williamson.edu, or call (610) 566-1776 or call toll free (888) 565-1095, or write The Williamson School, 106 S. New Middletown Road, Media PA 19063
Bequests to Williamson School
For many donors, a bequest is the most significant gift they can make to the School. A bequest removes assets from the donor’s estate and reduces its exposure to federal taxes. Bequests and other expectancies, which can be revoked by the donor if financial or other personal circumstances change, provide a solid foundation for the future. Bequests take various forms. Following are some samples of bequests for your consideration as you prepare your Will:
Specific Bequests
Likely the most popular form of bequest where one can designate the Williamson School to receive a specific dollar amount or piece of property. These can be restricted to meet a need at the School as specified by the donor. Common restrictions include endowing scholarships, professorships, lectureships, and book funds.
----- Example:
I give (insert dollar amount or description of property) to Williamson.
Unrestricted General Bequest
A specific bequest leaving the decision for the use of the funds where needed most by the School.
----- Example: I bequeath to The Williamson Free School of Mechanical Trades, the sum of (insert dollar amount) for its general purposes.
Bequest of Residual Estate
This type of bequest is used to give Williamson all (or a portion thereof) of an estate after all debts, taxes, expenses and all other bequests have been paid. ----- Example: "I devise and bequeath to The Williamson Free School of Mechanical Trades, the residue of my estate owned by me at my death, real and personal, and wherever situate".
Non-Grantor Lead Annuity Trust
A non-grantor charitable lead annuity trust is a gift plan defined by federal tax law that allows you to transfer assets to your family at reduced tax cost while making a generous gift to WilliamsonAs a lead annuity trust donor, you irrevocably transfer assets, usually cash or securities, to a trustee of your choice (for example, Williamson or a bank trust department.) During the trust's term, usually a fixed number of years, the trustee invests the trust's assets. Each year, the trustee distributes a fixed dollar amount to Williamson. These payments are used for the charitable purpose you designate and are made out of trust income, or trust principal if the trust income is not adequate. If trust income for a given year exceeds the annual charitable payment, the trust pays income tax on the excess. When the lead annuity trust term ends, its charitable payments cease and the trust distributes all of its accumulated assets to family members or other beneficiaries named by you.
----- Example:
If you irrevocably transfer $50,000 in cash to a non-grantor lead annuity trust that pays 7% of its initial value each year to Williamson for the lifetime of an individual, age 72… …you will qualify for a federal gift tax deduction of approximately $26,996. Your deduction may vary modestly depending on the timing of your gift. …Williamson will receive fixed payments in quarterly installments totaling $3,500 each year. …the beneficiaries of your trust (for example, family members) will receive all of the trust's assets when the trust terminates. Any asset growth that occurs within the trust will be distributed to your trust's beneficiaries free of gift or estate tax. …your gift will benefit from expert asset management, provided by the same professionals who manage Williamson's endowment.
Non-Grantor Charitable Lead Unitrust
A non-grantor charitable lead unitrust is a gift plan defined by federal tax law that allows you to transfer assets to your family at reduced tax cost while making a generous gift to Williamson. As a lead unitrust donor, you irrevocably transfer assets, usually cash or securities, to a trustee of your choice (for example, Williamson or a bank trust department). During the unitrust's term, usually a fixed number of years, the trustee invests the unitrust's assets. Each year, the trustee distributes a fixed percentage of the unitrust's value, as revalued annually to Williamson. These payments are used for the charitable purpose you designate and are made out of trust income, or trust principal if the trust income is not adequate. If trust income exceeds the charitable payment for a given year, the trust pays income tax on the excess. When the lead unitrust term ends, the unitrust distributes all of its accumulated assets to family members or other beneficiaries named by you.
----- Example:
If you irrevocably transfer $50,000 in cash to a non-grantor lead unitrust that pays 6.5% of its value each year to Williamson for the lifetime of an individual, age 72……You will qualify for a federal gift tax deduction of approximately $24,706. Your deduction may vary modestly depending on the timing of your gift. …Williamson will receive payments in quarterly installments each year. In the first year, these payments will be about $3,250; payments in future years will vary with the value of the unitrust. …the beneficiaries of your trust (for example, family members) will receive all of the trust's assets when the trust terminates. Any asset growth that occurs within the trust will be distributed to your trust's beneficiaries free of gift or estate tax. ...your gift will benefit from expert asset management, provided by the same professionals who manage Williamson’s endowment.
Charitable Remainder Annuity Trust
A charitable remainder annuity trust ("annuity trust") is a gift plan defined by federal tax law that allows you to provide income to yourself or others for life or a term of years while making a generous gift to Williamson. As an annuity trust donor, you irrevocably transfer assets, usually cash or securities, to a trustee of your choice (for example, Williamson or a bank trust department.) During the trust's term, the trustee invests the trust's assets. Each year, the trustee provides a fixed dollar amount to one or more income beneficiaries named by you. The payments must be at least 5% of the trust's initial value and are made out of trust income, or trust principal if income is not adequate. Payments may be made annually, semiannually or quarterly.
When the annuity trust term ends, the trust's principal passes to Williamson, to be used for the purpose you designate.
----- Example:
If you irrevocably transfer $50,000 in cash to an annuity trust that pays 5% of its initial value each year for the lifetime benefit of an individual, age 72….…you will qualify for a federal income tax deduction of approximately $30,717. Your deduction may vary modestly depending on the timing of your gift. Note that deductions for this and other gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of this kind on tax returns over the next five years, subject to the same 50% limitation. …your designated income beneficiary will receive fixed payments in quarterly installments totaling $2,500 each year for life. …your estate may enjoy reduced probate costs and estate taxes. …you will provide generous support of Williamson. …your gift will benefit from expert asset management, provided by the same professionals who manage Williamson’s endowment.
Charitable Remainder Unitrust
A charitable remainder unitrust ("unitrust") is a gift plan defined by federal tax law that allows you to provide income to yourself or others for life or a term of years while making a generous gift to Williamson. As a unitrust donor, you irrevocably transfer assets, usually cash, securities, or real estate, to a trustee of your choice (for example, Williamson or a bank trust department.) During the unitrust's term, the trustee invests the unitrust's assets. Each year, the trustee pays a fixed percentage of the unitrust's value, as revalued annually, to one or more income beneficiaries named by you. Payments must be at least 5% of the trust's annual value and are made out of trust income, or trust principal if income is not adequate. Payments may be made annually, semiannually, or quarterly. When the unitrust term ends, the unitrust's principal passes to Williamson, to be used for the purpose you designate.
----- Example:
If you irrevocably transfer $50,000 in cash to a unitrust that pays 5% of its value each year for the lifetime benefit of an individual, age 72……you will qualify for a federal income tax deduction of approximately $29,204. Your deduction may vary modestly depending on the timing of your gift. Note that deductions for this and other gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of this kind on tax returns over the next 5 years, subject to the same 50% limitation. …your designated income beneficiary will receive payments in quarterly installments for life. In the first year, these payments will be about $2,500; payments in future years will vary with the value of the unitrust. …your estate may enjoy reduced probate costs and estate taxes. …you will provide generous support of Williamson. …your Gift will benefit from expert asset management, provided by the same professionals who manage Williamson's endowment.
Charitable Gift Annuity
A charitable gift annuity is a simple contract between you and Williamson. In exchange for your irrevocable gift of cash, securities, or other assets, Williamson agrees to pay one or two annuitants, named by you, a fixed sum each year for life. The older your designated annuitants are at the time of the gift, the greater the fixed income Williamson can agree to pay. In most cases, part of each payment is tax-free, increasing each payment's after-tax value. Payments may be made annually, semiannually, or quarterly.
----- Example:
If you irrevocably transfer $50,000 in cash to Williamson in exchange for a $3,850 annuity for an annuitant, age 72……you will qualify for a federal income tax deduction of approximately $20,304.…your deduction may vary modestly depending on the timing of your gift. Note that deductions for this and other gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of this kind on tax returns over the next 5 years, subject to the same 50% limitation. …your designated annuitant will receive fixed payments, in quarterly installments, totaling $3,850 each year for life. In addition, $2,048.20 of each year's payments will be tax-free for the first 14.5 years. …your estate may enjoy reduced probate costs and estate taxes. …you will provide generous support for the Williamson.
Deferred Gift Annuity
A deferred gift annuity is a simple contract between you and Williamson.In exchange for your irrevocable gift of cash, securities, or other assets, Williamson agrees to pay one or two annuitants named by you a fixed sum each year for life, with payments starting at least one year after your gift. The older your designated annuitants are at the time of the gift and the longer payments are deferred, the greater the fixed income Williamson can agree to pay. In most cases, part of each payment is tax-free, increasing each payment's after-tax value.Payments are usually made annually, semiannually, or quarterly
----- Example:
If you irrevocably transfer $50,000 in cash to Williamson in exchange for a $3,900 annuity for an annuitant, age 72, starting at age 73……you will qualify for a federal income tax deduction of approximately $23,603. Your deduction may vary modestly depending on the timing of your gift. Note that deductions for this and other gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of this kind on tax returns over the next 5 years, subject to the same 50% limitation. Your designated annuitant will receive fixed payments in quarterly installments totaling $3,900 each year, starting at age 73, for life. In addition, $1,911.00 of each year's payments will be tax-free for the first 13.8 years. Your estate may enjoy reduced probate costs and estate taxes. You will provide generous support of Williamson.
Retained Life Estate
A retained life estate is a gift plan defined by federal tax law that allows you to donate your home or farm to Williamson while retaining the right to live in it for the rest of your life. As the creator of a retained life estate, you irrevocably deed to Williamson your home or farm, but retain the right to live in it for the rest of your life, a term of years, or a combination of the two. You may also use a vacation home to create this kind of gift. While you retain the right to live on your property, you continue to be responsible for all routine expenses - maintenance fees, insurance, property taxes, repairs, etc. If you later decide to vacate your property, you may rent all or part of the property to someone else or sell the property in cooperation with Williamson.
When your retained life estate ends, Williamson can then use your property or the proceeds from the sale of your property for the purpose you designate.
----- Example:
If you irrevocably transfer your home or farm, which has a total value of $50,000, to Williamson, and the right to live in it is retained for the lifetime benefit of an individual, age 72… …you will qualify for a federal income tax deduction of approximately $23,241. Your deduction may vary modestly depending on the timing of your gift. Note that deductions for this and other gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of this kind on tax returns over the next five years, subject to the same 50% limitation. …you will retain the right to live on your property for the rest of your life. …your estate may enjoy reduced probate costs and estate taxes. …you will provide generous support of Williamson
Flexible Gift Annuity
A flexible gift annuity is a simple contract between you and Williamson. In exchange for your irrevocable gift of cash, securities, or other assets, Williamson agrees to pay one or two annuitants named by you a fixed sum each year for life, with payments starting at least one year after your gift. The annuitants may elect to start receiving payments on any one of a range of dates. These dates and their corresponding payment amounts must be listed in your agreement. The older your designated annuitants are at the time of the gift and the longer they elect to defer payments, the greater the fixed income Williamson can agree to pay. In most cases, part of each payment is tax-free, increasing each payment's after-tax value. Payments are usually made annually, semiannually, or quarterly
----- Example:
If you irrevocably transfer $50,000 in cash to Williamson in exchange for an annuity with elective payment start dates that range from 6/1/2004 to 6/1/2018 for an annuitant, age 72...…you will qualify for a federal income tax deduction of approximately $23,603. Your deduction may vary modestly depending on the timing of your gift. Note that deductions for this and other gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of this kind on tax returns over the next 5 years, subject to the same 50% limitation. …if your designated annuitant elects to start receiving payments on 6/1/2004, from that date forward your designated annuitant will receive fixed payments in quarterly installments totaling $3,900 each year, for life. In addition, $1,911.00 of each year's payments will be tax-free for the first 13.8 years. …your estate may enjoy reduced probate costs and estate taxes. …you will provide generous support to Williamson. The deduction and annuity taxation numbers shown above may change if the elective payment start dates that are listed in your agreement do not match the elective payment start dates used in this example.
Bargain Sale
A bargain sale is a simple agreement in which you sell securities, real estate, tangible personal property, or other assets to Williamson for less than their current value.
----- Example:
If you sell property worth $50,000 with a cost basis of $50,000 to Williamson for $25,000….…you will qualify for a federal income tax deduction of $25,000. (Note that deductions to 50% of your adjusted gross income. You may, if necessary, take unused deductions of this kind on tax returns over the next 5 years, subject to the same 50% limitation. )…you will receive $25,000 from Williamson. …your estate may enjoy reduced probate costs and estate taxes. …you will provide generous support of Williamson.
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