WE LEAVE A
LEGACY

Make a gift that will impact lives for years to come by naming SFC in your will or trust.

PLANNED GIFTS

Although bequests are the most popular planned gift, there are many other ways to leave a legacy benefiting Santa Fe Christian Schools.

WHAT TO GIVE

Cash
Real Estate
Stocks and Bonds
Life Insurance
Retirement Assets

HOW TO GIVE

We make it easy to give. Contact our Development department and let them work with you to plan how you would like to leave a legacy.

Charitable Remainder Trusts

Charitable remainder trusts allow you to make a gift while retaining a benefit from the assets you give. These separately managed trusts can be tailored to meet your financial goals with respect to the payout rate, type of income stream (variable or fixed), and payment schedule. To establish a remainder trust, you make an irrevocable contribution of cash, securities, or other appreciated property, which is placed in trust. The trust pays an income stream to one or more named beneficiaries (which can include you) for life and/or for a set term of years (not to exceed 20), and SFCS receives the right to principal as a remainder interest.

The two most common types of charitable remainder trust are: (1) the annuity trust, which pays a fixed dollar amount each year based on a percentage (at least 5%) of the initial fair market value of the trust assets; and (2) the unitrust, which pays a variable income stream based on a percentage (again, at least 5%) of the fair market value of trust assets as revalued each year. A deferral feature is available for charitable remainder unitrusts. Because charitable remainder trusts (like an IRA or 401(k)) are tax-exempt, this deferral feature can make them a useful retirement planning tool if you are in a position to defer your receipt of an income stream. Charitable remainder trusts are typically funded with assets worth $100,000 or more. Establishing such a trust generally entitles you to claim an immediate income-tax charitable deduction. You should consult with your financial, tax, and legal advisors for more information on charitable remainder trusts as they pertain to your particular situation and needs..

Charitable Lead Trusts

A charitable lead trust is the reverse of a charitable remainder trust; the gift to SFCS is the income stream from the trust, not the remainder. Charitable lead trusts enable you to provide an income stream to charity immediately for a set term of years or for a term measured by one or more lifetimes after which the trust assets pass to you or your estate or to your heirs. Leaving the asset to heirs can significantly reduce the gift or estate tax that would otherwise apply. If you think a charitable lead trust could be a useful way to structure a gift, you should review the alternatives for structuring the trust with your financial, tax, and legal advisors.

Retirement Plan Assets

Assets in qualified (tax-deferred) retirement plans may represent a large portion of your total assets and therefore may be an important factor in planning testamentary charitable gifts. Retirement assets generally considered suitable for charitable gifts include such plans as IRAs, Keoghs, SEPs, 401(k)s, 403(b)s, and ESOPs.

Left to family members or friends, these assets are subject to income tax and may also be subject to estate tax and generation skipping transfer tax. Because of this potential double layer of tax, retirement plan assets may be particularly attractive as an asset to leave to charity. In other words, if you designate SFCS as a beneficiary upon your death, the portion of the plan payable to SFCS will generally escape estate taxes, and SFCS as a tax-exempt institution, will not be required to pay income tax on the distributions. As a general rule, if you intend to make both non-charitable and charitable gifts at death, it makes sense to consider using your tax-deferred retirement plan assets for charity and other assets for heirs.

Life Estate Reserved

A retained life estate arrangement is an opportunity to fund a charitable gift with your home, vacation home, or farm. You transfer ownership now, but continue to have use of the property for the remainder of your lifetime(s) after which the property comes to SFCS.

Life Insurance Policies

Naming SFCS as the beneficiary of an existing life insurance policy (that is no longer needed to provide for dependents) offers a simple way to support SFCS. Since you are the policy owner, the value of the policy will be included in your estate, but an offsetting estate-tax charitable deduction will generally be allowed. You may also be able to assign an existing whole life policy to SFCS, irrevocably making SFCS the owner and beneficiary, and claim an income tax charitable deduction for the lesser of either your basis in the policy or its fair market value in the year of the transfer. If the policy is not paid up and additional premium payments are due, you may donate cash or the equivalent to SFCS to pay the premiums each year and claim a full tax deduction for the gift. Lastly, you may be able to purchase a new policy naming SFCS as owner and beneficiary, pay the annual premiums (through SFCS), and claim the premium as a charitable contribution.
If you are considering donating a life insurance policy to SFCS, it is important that you consult your advisors about the possible restrictions on such a gift and about the amount of the charitable deduction you can expect to receive.

To further explore these options and how they might work for you, email [email protected] to request more information or schedule an opportunity to meet with our Planned Giving Specialist.