Leaving a Legacy:
Making a Planned Gift
There are many ways an individual can contribute through his or her estate. Each method of planned giving can be tailored specifically to that person's needs and the needs of the recipient of the gift.
Planned gifts to Fork Union Military Academy make up a large percentage of its overall donations and by leaving a legacy to the Academy, you are once again "Securing the Promise" for future generations of cadets.
New IRA Rollover Provision of 2006
Friends of the Academy are now able to take advantage of an exciting new tax-smart, charitable giving opportunity allowed under The Pension Protection Act of 2006.
This provision allows donors aged 70 1/2 and above to transfer as a donation up to $100,000 in 2006 and another $100,000 in 2007 - tax-free - directly from their Traditional or Roth IRA account to a qualified charity of their choice. The benefits of taking advantage of this Charitable IRA Rollover opportunity include:
- The donor pays no tax on the transfer in 2006 or in 2007. (Under the prior law the transfer was taxed as income to the donor, even if the funds were given to a charity.)
- A spouse of the same age may also take advantage of this opportunity.
- This transfer does not reduce the donor's ability to make other charitable, tax-deductible gifts subject to applicable giving limits, and it offers a charitable, tax-advantaged opportunity to donors who do not itemize.
- The transfer reduces or replaces the amount that a donor must take into taxable income as a Traditional IRA minimum distribution.
- This gift can accomplish significant charitable goals.
This new provision will allow many donors to realize a major impact on their giving. We recommend that you communicate with the charity of your choice in advance of any transfer about designating your gift to an area of your passion, as well as the selected organization's need. Fork Union Military Academy does not offer legal or tax advice. It is important to contact your tax, legal, or financial professional to determine how this provision might work for you.
Types of Planned Gifts
- Wills or Trusts - This is one of the most popular ways for making long-range gifts to the Academy. Some of the most commonly used methods of giving through a will include: a) stating a fixed dollar amount; b) giving a specific property; c) giving a percentage of the assets passing under one's will; and d) providing a gift to an institution from what is left over after providing to loved ones.
- Life Insurance - This is a great way to give to the Academy by naming FUMA as a beneficiary of a policy or assigning annual dividends to the school. Other ways include obtaining a new policy for the organization or donating a paid-up policy and designating FUMA as the beneficiary.
- Charitable Remainder Trusts (CRT) - This is a way for individuals to make a meaningful gift to FUMA and provide for their own future financial well-being. A donor places cash or certain assets into a trust and the Academy will benefit from this trust after the donor's death.
This irrevocable trust is designed to convert an investor's highly appreciated assets into a lifetime income stream without generating estate and capital gains taxes. CRT's have become very popular in recent years because they not only represent a valuable tax-advantaged investment, but also enable you to provide a gift to the Academy.
For more information on the different types of planned gifts and how to leave a legacy to Fork Union Military Academy contact Phil Snead, Director of Alumni Affairs/Planned Giving at 434/842-4377 or email sneadp@fuma.org.
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