Creating a Legacy - Your Planned Giving is a Gift to the Future . . . How Will You Be Remembered?
What is a planned gift?
Planned giving describes the many ways in which individuals make charitable gifts, perhaps much larger than thought possible, that become fully funded at some point in the future. A variety of planned giving vehicles are available to those who wish to create a lasting legacy and provide for the future benefit of LISD.
Determining what gift is right for you is just as important as making the gift. Charitable funds may be established during your lifetime or by bequest and can be tailored to your specific requirements and interests. The LEF staff is available to work with your attorney and accountant to design the best solution for you and your family.
Methods of Investing in the Future
You have several options available to you in making a planned gift that name The Lewisville ISD Education Foundation as beneficiary. These include:
Gifts of Stocks or Bonds: A charitable gift of stocks or bonds provides an opportunity for tax savings while generously sharing with others. A gift of stock owned for more than one year entitles you to a charitable deduction for the full market value at the time the gift is made. If the stock has appreciated, you also avoid a capital gains tax on the appreciation.
Bequest: One of the simplest ways to give is through a bequest that is specified in your will or living trust.
Charitable Remainder Trust(CRT): Through a gift of assets, you can establish a trust naming The Lewisville ISD Education Foundation as the ultimate beneficiary while providing an income stream for you or a named beneficiary for life. Upon the death of the named beneficiary, the principal of the trust is distributed to a charitable fund with LEF. By establishing a CRT, you will gain an immediate income tax deduction, reduce estate taxes, possibly increase income from your assets, provide for a spouse and/or heirs, and deter or eliminate capital gains taxes – all the while making a gift that will continue in perpetuity.
Charitable Lead Trust (CLT): With a CLT, a part of your estate is donated to the trust immediately, and the income goes to a charitable fund with the Lewisville ISD Education Foundation for a designated number of years. The trust can be created during your lifetime or at death and will reduce estate or gift taxes. When the period of the trust concludes (such as when children or grandchildren reach a certain age), the trust is terminated and the assets return to their benefit.
Qualified Retirement Plan: Individual Retirement Accounts (IRAs) left to heirs may be subject to taxes that could total over half of the IRA's value. Designating the Lewisville ISD Education Foundation as the beneficiary of an IRA is an excellent way for you to make a charitable gift while reducing the impact of income, estate, and generation-skipping taxes on a family's inheritance by removing the asset from the donor's estate.
Life Insurance: A paid-up, existing life insurance policy may be donated by designating the Lewisville ISD Education Foundation as owner and beneficiary. You also may donate a life insurance policy that is not fully paid up, by designating the Lewisville ISD Education Foundation as owner and beneficiary and by continuing to pay the annual premiums. These gifts provide you with a current charitable income tax deduction and also may reduce your estate tax. When the policy is redeemed, a permanent fund is created to support the charitable goals described by the donor.
Life Estate: Like many people, your major asset may be your home. You may irrevocably transfer the ownership of your residence to the Lewisville ISD Education Foundation and retain the right to occupy the premises throughout your lifetime while receiving a tax deduction based on the property's value. This gift also would lower estate taxes since the property is no longer a part of your estate.
The Lewisville ISD Education Foundation can assist you in determining the best method for your planned gift. However, we encourage you to seek the advice of your financial advisor or estate planner before making a final decision. Should you not currently have such counsel, we would be happy to recommend several reputable professionals to assist you. Please contact Mary Worthington at (469) 948-2013 or via email at worthingtonm@lisd.net.
The Foundation has been designated as a 501(c)(3) non-profit organization by the IRS.
Donations made to the foundation are tax deductible as defined by the IRS Revenue Code.
