Estate & Planned Giving
Bishop Montgomery Legacy Society Members Receive:
- Invitations to special events & Masses
- Listing on the Bishop Montgomery Legacy Society Honor Roll, Annual Report, and Website
Bishop Montgomery Legacy Society Honor Roll
Justine Black '65 (in memory of Mary Russell '65)
Carol & Steve Hoffman '62
Maria & Paul Reis '91
Frances & Michael Ruggera
Charitable Gift Annuity
A charitable gift annuity is a contract between a donor and a charity with the following terms:
• As a donor, you make a sizable gift to charity using cash, securities or other assets;
• In return, you become eligible to take a partial tax deduction for your donation, plus you receive a fixed stream of income from the charity for the rest of your life.
How does a charitable gift annuity work?
1. You make a donation to a single charity;
2. The gift is set aside in a reserve account and invested;
3. Based on your age(s) at the time of the gift, you receive a fixed monthly or quarterly payout for the rest of your life;
4. At the end of your life (as well as your spouse’s, if giving as a couple), the charity receives the remainder of the gift.
Minimum gifts for establishing a charitable gift annuity may be as low as $5,000, but are often much larger.
Charitable Remainder Trust
A charitable remainder trust (CRT) is an irrevocable trust that generates a potential income stream for you, as the donor to the CRT, or other beneficiaries, with the remainder of the donated assets going to your favorite charity or charities.
How does a charitable remainder trust work?
1. Make a partially tax-deductible donation
• Donate cash, stocks or non-publicly traded assets such as real estate, private business interests and private company stock and become eligible to take a partial tax deduction.
2. You or your chosen beneficiaries receive an income stream
• Based on how you set up the trust, you or your stated beneficiaries can receive income annually, semi-annually, quarterly or monthly. The annual annuity must be at least 5% but no more than 50% of the trust’s assets.
3. After the specified timespan or the death of the last income beneficiary, the remaining CRT assets are distributed to the designated charitable beneficiaries.
Charitable Lead Trust
At their most basic level, a charitable lead trust works in the following way:
1. The grantor, or person establishing the charitable lead trust, makes a contribution to fund the trust which is set up to operate for a fixed term such as a set number of years or the life of one or more people;
2. Payments from the trust are disbursed to the selected charity or charities as either a fixed annuity payment or a percentage of the trust, depending on how the trust has been structured;
3. At the end of the term, the remaining assets are distributed to non-charitable beneficiaries, often family members.
Bequests
A bequest can be funded with a variety of assets, including:
- Cash;
- Appreciated securities;
- Real estate;
- Personal property;
- Closely held stock.
One of the easiest and most flexible ways to express your passion about supporting Bishop Montgomery is through a beneficiary designation. By simply naming Bishop Montgomery High School as a beneficiary, you can direct certain assets to the school without changing your will. Beneficiary designations are made through a separate form, making this a straightforward and convenient way to give.
This approach is also flexible—you can review or change your beneficiary designations at any time. Assets that can be designated include:
- Retirement plan assets;
- Life insurance policies;
- Commercial annuities;
- Bank accounts, certificates of deposit, or brokerage accounts.
Life Insurance
Donating a life insurance policy you no longer need can be a meaningful way to support Bishop Montgomery High School. Benefits of this type of gift include:
- Transferring ownership of a paid-up life insurance policy to Bishop Montgomery High School;
- Allowing the school to either cash in the policy now or receive the death benefit in the future;
- Receiving gift credit and an immediate income tax deduction for the policy’s cash surrender value;
- Making a significant gift without adversely affecting your current cash flow.
Consider a Charitable Bequest Through Your IRA
You may wish to consider making a charitable bequest of part or all of your IRA to Bishop Montgomery. By naming Bishop Montgomery as the beneficiary of your IRA, you can eliminate the potential for double taxation—both federal estate and income taxes—that your heirs may otherwise face.
Key Benefits of Naming Bishop Montgomery as Your IRA Beneficiary
- Maximize your charitable impact. One hundred percent of your IRA assets designated to Bishop Montgomery will support a cause that is meaningful to you.
- Avoid unnecessary taxes. Your estate may avoid taxation on up to 60 percent of your IRA assets by eliminating estate and income taxes that would otherwise apply.
- Receive a charitable estate tax deduction. When your IRA is transferred directly to Bishop Montgomery upon your death, your estate may claim a charitable estate tax deduction.
- No income tax burden for heirs. Neither your estate nor your heirs will be required to report taxable income from the IRA distribution.
Because IRAs are subject to both income and estate taxes when left to individuals, an IRA bequest is one of the most tax-efficient ways to make a charitable gift through your estate.
How to Make an IRA Bequest
The simplest way to make a gift of your IRA assets is to name Bishop Montgomery as a beneficiary on your IRA beneficiary designation form. To do so, contact your plan custodian, who can provide the appropriate forms and assist you with this designation.
IRA Owners 70 1/2 and Older
If you are 70 ½ or older, you can make a tax-free gift directly from your IRA account to BMHS. This law allows you to transfer any amount up to $111,000 annually directly to a qualified charitable organization without paying income tax on the distribution. The transfer does not generate taxable income or a tax deduction, so you benefit even if you do not itemize your tax deductions. Your gift can satisfy all or part of your required minimum distribution (RMD).
More information below.
Stocks may be transferred directly to the Archdiocese for the benefit of Bishop Montgomery. These gifts will not affect your cash flow, and they provide the following tax benefits:
- A possible charitable deduction to help you save on taxes;
- Bypass of federal and state capital gains taxes;
- Avoidance of the tax on net investment income.
From a tax perspective, a gift of appreciated assets makes good sense. You can make the capital gains taxes optional, achieve significant tax savings and support our programs.
Please contact:
Karen Dunphy, Archdiocese of Los Angeles / 213-637-7504 / [email protected]
Mayra Sanchez, Archdiocese of Los Angeles / [email protected]
Information about making a gift via stock transfer can found below under "Resources."
Personal Property & Real Estate
To make a gift of personal property and/or real estate, contact the Advancement Office at 310.540.2021 x246.
When making a planned gift to Bishop Montgomery, the school's legal title is "The Roman Catholic Archbishop of Los Angeles, A Corporation Sole, for the Benefit of Bishop Montgomery High School."
For more information, please contact:
Andy Marafino, Director of Advancement, Bishop Montgomery at 310.540.2021 x246 or [email protected], or
Karen Dunphy, Archdiocese of Los Angeles at 213-637-7504 or [email protected]
The Archdiocese of Los Angeles has provided a "Notification of Gift Intention" form for any planned gift (see below). Although it is not mandatory to complete, it does provide BMHS with an accurate record of your gift.
