HOW TO PLAN

Before you make your will and/or other estate and financial plans, be well prepared.

• 1. Make a list of the people you want to include—family, special plans, employees, and Santa Clara High School.
• 2. Then list the property you wish to distribute—include securities, real estate, life insurance, retirement plans, and personal possessions.
• 3. Consider ways to match the people or Santa Clara High School with the property.
• 4. Finally, list any professional planners you may need to consult—for instance, your attorney, banker, accountant, tax advisor, financial planner, investment advisor, or representatives of a charitable interest.

I. BEQUESTS or GIFTS BY WILL

The most desired type of planned gift. The donor names Santa Clara High School in their will or trust and when the donor passes, the school will receive the allotted gift of cash or property. The donor’s estate will, in turn, receive an estate tax deduction.

Benefits: The donor maintains ownership and use of property during their lifetime while benefiting Santa Clara High School when they pass away.

II. CHARITABLE GIFT ANNUITY

The donor makes a charitable gift of cash or property to Santa Clara High School in exchange for lifetime income from the Archdiocese of Los Angeles. The payment amount is based on the age(s) of payment recipient(s), when the gift is completed; the older the recipient(s) the larger the payments.

Benefits: The donor receives lifetime income in exchange for the gift of cash or property. Each payment to the donor from the Archdiocese of Los Angeles has partly tax-free income while the donor receives a current income tax deduction. If you and/your spouse are the only payment beneficiary, the amount used to fund a gift annuity is generally not subject to estate taxes that might otherwise be due.

III CHARITABLE REMAINDER TRUST

The donor deposits cash or property into a trust. The trust, in turn, makes income payments to the donor throughout his or her lifetime with the remainder of the trust’s assets going Santa Clara High School when the donor passes away.

Benefits: The assigned property placed into the trust avoids Capital Gains taxes that the donor may be obligated to pay since the trust sells the property tax free! The trust pays between 5-50% of its value yearly to the trust beneficiary, which can be the donor. The donor receives a current income tax deduction based upon the value of the assets appointed to Santa Clara High School after the donor passes away.

IV CHARITABLE LEAD TRUST

The donor deposits cash or property into a trust and that trust makes payments to Santa Clara High School for a specified period of time, with the remaining assets going to the donor’s family. A charitable lead trust can be created to provide income for charitable purposes for a designated period of time—typically 5, 10, 15, 20 or more than 20 years.

Benefits: The donor receives a current gift or estate tax deduction for the present value of the payments that will go to Santa Clara High School.

V. LIFE ESTATE RESERVED

The donor gives their house to Santa Clara High School but reserves the right to occupy the residence during their lifetime.

Benefits: The donor receives an income tax deduction for the remaining value of the house. The donor can continue to occupy their home for their lifetime and benefit Santa Clara High School when they pass away.

VI GIFTS OF LIFE INSURANCE

The donor gifts their non-needed life insurance policy to Santa Clara High School.

Benefits: The donor receives an income tax deduction for the current value of the life insurance policy. Santa Clara High School receives the policy proceeds when the donor passes away.

VII RETIREMENT PLANS

Whether it’s a company retirement plan, a private fund such as an Individual Retirement Account (IRA), or a combination of the two, you can designate Santa Clara High School as the final beneficiary of any remaining funds which you or your loved ones do not use.