A Bequest Gift to the School
FIRST YOU MUST HAVE A WILL: Those who already have a will are exceptional. Fewer than one out of every three adults have a will; and of those who do, many wills are now out of date. The first step in making a charitable bequest to St. Charles Preparatory School is establishing a current will.
WHY A WILL IS IMPORTANT: A will allows you to:
– Name the person who will manage and settle your estate, according to your instructions.
– Reduce and often eliminate estate taxes and other expenses of settling your estate, allowing you to pass most of your assets to those you wish to receive them.
– Specify how your estate is to be distributed to family, friends, and organizations that are important to you.
– Establish trusts for your spouse, children, or others. Trusts can assure that loved ones are provided for without saddling them with the burden of managing large sums of money. Trusts can also be helpful in minimizing taxes.
– Make a bequest to St. Charles Preparatory School and other charitable organizations.
– Be recognized as a donor to St. Charles Preparatory School even though you choose not to make a current outright gift.
A DO-IT-YOURSELF JOB? A will is not a do-it-yourself proposition since laws governing the proper execution of wills vary from state to state. Fill-in-the-blank forms may be all right in a limited number of cases but most situations require a “custom fit.” An attorney can make sure that your wishes are communicated clearly in a will and can make sure that your particular estate planning needs are addressed. Finally, an attorney will see that your will is properly executed and, therefore, valid.
WHEN SHOULD I REVISE MY WILL? If you already have a will, it may be a good idea to review it and consider updating it. Consider the following questions as you review your will:
Have you moved to another state?
Are the beneficiaries still living?
Do you still want your estate distributed to the same beneficiaries in the same amounts?
Do you still own the specific property mentioned? Do you have new property?
Are you able to assist your favorite charitable organizations with a bequest?
A CHARITABLE BEQUEST You can name St. Charles Preparatory School and other charitable organizations in your will at the time the will is written or when you revise your will. If you have a current will, your attorney can add a codicil – a simple amendment – to include a charitable bequest.
BEQUESTS TO THE SCHOOL Bequests to St. Charles Preparatory School can take several forms. You can indicate the amount of money or the specific assets that should go to the St. Charles. You can even specify that St. Charles would receive a bequest after your children, parents, or other primary beneficiaries are provided for, or in the event that they do not survive you. Samples of these various forms are provided below. You should ask your attorney to adapt these samples for use in your will or codicil:
“I give, devise and bequeath to St. Charles Preparatory School, Columbus, Ohio, the sum of $_____ (or a specific asset) to be used for …” (See information on designation below)
PERCENTAGE OF YOUR ESTATE:
“I give, devise and bequeath to St. Charles Preparatory School, Columbus, Ohio, _____% of my estate to be used for …” (See information on designation below)
“I give, devise and bequeath all the rest, residue and remainder of my estate, both real and personal property of whatever kind and wherever situated, which I may own or have the right to dispose of at the time of my death, to St. Charles Preparatory School, Columbus, Ohio, to be used for …” (See information on designation below)
“I give, devise and bequeath to (Named Beneficiary) the sum of $_____ (or _____% of the estate), but if he/she shall not be living, then I give, devise and bequeath the same to St. Charles Preparatory School, Columbus, Ohio, to be used for …” (See information on designation below)
A TESTAMENTARY TRUST All or part of your estate may be left in trust to provide income to your beneficiaries. Upon the death of the survivor, or after a pre-determined number of years, the principal goes to St. Charles Preparatory School.
DESIGNATING THE USE OF YOUR BEQUEST Just as in a gift of cash, your bequest can be unrestricted, meaning that you will leave it up to the Principal and the St. Charles Advisory Board to determine how best to use your gift when it is received. It is also possible to designate that your bequest should benefit a specific use at St. Charles such as scholarships for needy students, merit scholarships to recognize academic excellence, faculty support, and physical facility upgrades. You may also specify that the funds be used for program support. These purposes may be school-wide or restricted to a specific department or program. It is usually advisable to consult with a member of the St. Charles Development staff who can assist you in developing a designation that will be meaningful to both you and the school.
ENDOWED FUNDS Many donors find it satisfying to know that their bequest can establish a permanent fund from which only the income will be used. A named endowed fund can be established at St. Charles with a gift of $25,000 or more. Named endowed funds provide a lasting memorial to the donor, the donor’s family, or those the donor wishes to honor. More on Endowments
FLEXIBILITY In the drafting of all bequests having a restricted purpose, we respectfully request that you and your attorney consider a clause to permit St. Charles the flexibility in meeting your wishes. Such a clause might read as follows:
“If, at the time this bequest is received by St. Charles Preparatory School, or anytime thereafter, the need for this fund should cease to exist or so diminish as to provide unused income, then another use shall be designated by the Advisory Board as recommended by the appropriate school official in order to carry out the desire of the donor.”
CONFIDENTIALITY AND RECOGNITION There is, of course, no obligation to tell St. Charles about your bequest. However, we would be happy to work with you and your advisors to develop bequest language and endowment descriptions that will be mutually beneficial to St. Charles and you. Should you choose to be recognized, St. Charles gives special recognition to all alumni and friends who have St. Charles Preparatory School in their wills.
A WORD ABOUT TAXES Unlike a cash gift, a bequest will not provide you with an income tax deduction. However, your estate will receive an estate tax charitable deduction for the fair market value of your charitable bequests. Your attorney, accountant and other advisors can give you more detailed information about the tax consequences of your estate plans.
If you would like more information on making a Bequest Gift, please contact the school’s Development Office and ask to speak with Michael Duffy, the St. Charles Development Director. He can be reached at (614) 252-9288 extension #20 or at [email protected]