St. Sebastian's School - Academic Rigor | Spiritual DepthThe order of the day is to love God, work hard, and take good care of one another. William L. Burke iii, Headmaster

Bequests, Trusts & Annuities

 

Gifts Which Give Back

Charitable Gift Annuity
A charitable gift annuity is a simple contract between you and St. Sebastian’s School. In exchange for your gift of cash or appreciated securities, St. Sebastian’s will provide you (and/or one other individual) with a fixed income, guaranteed for life, and backed by all of St. Sebastian’s assets. There are a number of income and tax benefits, including:

  1. As donor, you receive an immediate federal income tax deduction for a portion of your gift.
  2. Should you fund your annuity with appreciated securities, your income, as well as your deduction, will be based on the full, fair market value of the securities, not your basis.
  3. As beneficiary, your income is taxed favorably at a combination of ordinary and capital gain rates.
  4. A portion of each annuity payment may be treated as tax-free income.
  5. Because St. Sebastian’s School follows the guidelines of the American Council on Gift Annuities you know you are offered the highest rates possible with good stewardship of your gift.
  6. You have the satisfaction of knowing that you have provided for the future of St. Sebastian’s School.

View Charitable Gift Annuity Income/Deduction Charts.

Deferred Payment Charitable Gift Annuity
St. Sebastian’s School offers donors the option of maximizing their tax and income benefits by making a gift now but reserving the right to receive income at some designated future date (e.g. to supplement retirement income). The benefits are similar to those listed above, with the added advantage of the flexibility of having income begin at the optimal time for you and your family - from one year, to twenty or more, the choice is yours!

Charitable Remainder Trusts
Charitable remainder trusts provide greater flexibility for the donor who wishes to address specific and, sometimes, changing financial strategies. Funded with cash, appreciated securities, as well as other assets, such as real property, these trusts can provide one of two income payments, either a fixed dollar (annuity trust) or a fixed percentage (unitrust). Benefits include:

  1. As donor, you receive an immediate federal income tax deduction for a portion of your gift, reflecting the age of the beneficiaries and the payout rate you have selected.
  2. Should you fund your trust with appreciated securities your income, as well as your deduction, will be based on the full, fair market value of the securities, not your basis.
  3. No capital gain tax is due on appreciated assets used to fund charitable trusts.
  4. It is possible to name more than two income beneficiaries.
  5. Trusts can be either for life or for a term of up to twenty years.
  6. Donors can name St. Sebastian’s School to serve as Trustee.
  7. Alternatively, donors can serve as their own trustees or co-trustee with a bank or other financial institution.
  8. Trusts can be funded with a variety of assets, including real estate.

Charitable Remainder Unitrust
The unitrust pays income to its beneficiaries as a fixed percentage of the fair market value of the asset held in trust, valued annually. By law, it cannot pay less than 5%. Actual dollars paid to the beneficiary will fluctuate as the value of the trust’s assets fluctuates. The rate of return can be established to provide for higher income or for growth over time to meet the needs of the income beneficiary. Charitable remainder trusts are ideal for those alumni and friends who like financial flexibility and who have more to invest. There are a number of variations that are available to donors who wish to explore the benefits of a unitrust.

Charitable Remainder Annuity Trust
The annuity trust pays income to its beneficiaries as a fixed dollar amount, which is established at the outset. By law, it cannot pay an amount less than 5% of the original asset used to fund the trust. The primary advantage of the annuity trust over the gift annuity is the donor’s ability to use the trust for a specific term of up to twenty years. These trusts are commonly used to provide a stream of income when there is a timeframe attached, such as a desire to provide for tuition for a child or grandchild.

Remembering St. Sebastian's School In Your Estate Plans

For those alumni and friends who would like to support the future of St. Sebastian’s School without affecting current income or taxes there are many gift options, including bequests, life insurance, pension plan assets, and retained life estates.

Bequests
Specific Amount or Asset - I give, devise and bequeath to St. Sebastian’s School, located in Needham, Massachusetts the sum of $________________ (or, all my right, title and interest in the property as described herein).

Specific Percentage - I give, devise and bequeath to St. Sebastian’s School, located in Needham, Massachusetts, _____% of the residue of my estate.

Contingent Bequest - Should (name of individual) predecease me, then I direct that my executor provide that his/her interest shall be made payable to St. Sebastian’s School, located in Needham, Massachusetts.

Alumni and friends are encouraged to consider an unrestricted gift to St. Sebastian’s, providing the School with the ability to meet ever-changing financial needs. Should you wish to restrict your gift, you are encouraged to first call the Development Office to discuss your interests and intentions.

** This information is not intended to serve as legal or financial advice. Please contact your attorney or financial advisor for specific advice.