Giving Models
These model provisions are informational only. For your
protection, you should consult your attorney or financial advisor
before including any provisions in a last will and testament.
Securities
Giving securities may be the most advantageous way to give. You
may receive very favorable tax consequences by giving stock that has
appreciated.
Testamentary Trust or Annuity Bequest
A Testamentary Charitable Trust or Annuity may be set up to
provide life income to a survivor, with the principal going to
Ouachita Christian School upon the survivor's death. Any charitable
deduction for estate taxes will be subject to the same limitations
that are applicable to Charitable Remainder Trusts.
If you wish to make a gift to the Foundation, but first want to
provide for income during your lifetime or that of your spouse or
other family member, the following may be of interest.
Charitable Gift Annuity
The gift annuity is a combination of a gift to the Foundation and
an annuity. In return for your gift of cash, securities and/or real
estate, the Foundation provides you with a contract that will pay
you a fixed amount on a scheduled basis during your lifetime.
The gift annuity provides an immediate income tax deduction for
the value of the gift based on Internal Revenue Service life
expectancy tables and your age. Also, a portion of the annuity
payment is tax-free return of the original principal. The
combination of partially tax-free income and the initial charitable
tax deduction makes this agreement quite attractive.
Charitable Remainder Trust
You may prefer to make a deferred gift through a Charitable
Remainder Trust. This trust provides an immediate income tax
deduction for the value of the remainder interest in the trust based
on Internal Revenue Service life expectancy tables, your age and
rate of return at that time. These trusts are individually managed
with annual payments made to your named beneficiary for his or her
lifetime. Neither Ouachita Christian School nor its Foundation is
chartered to serve as trustee, therefore, a third party (such as a
bank or friend) should be used. After the death of the named
beneficiary, the trustee will transfer the principal to Ouachita
Christian School. The two types of Charitable Remainder Trusts are:
- Annuity Trust: The annual payment is a
fixed dollar amount based on a percentage (which must be at
least 5 percent) of the initial fair market value of the trust
property.
- Unitrust: The annual payment from a
unitrust is a fixed percentage (which must be at least 5
percent) of the value of the trust assets re-evaluated each
year.
Both trusts are quite flexible and offer options that should be
considered.
Life Insurance
There are many ways to use life insurance to make a gift. Here
are a few of the most popular methods:
- Purchase a policy and designate Ouachita Christian School as
the irrevocable owner and beneficiary. By paying relatively
small annual premiums, you guarantee a large future gift, and
your premiums are tax deductible each year.
- Change the beneficiary of an existing policy. You may name
Ouachita Christian School to receive all or a portion of the
proceeds.
- Add Ouachita Christian School to the list of existing
policies as remainder or final beneficiary. In the event that
your primary or secondary beneficiaries don't survive you, OCS
would receive the benefit.
- Assign annual dividends from policies to the Foundation as a
regular means of giving tax-free income. The value of the
dividends is deductible as a gift.
- Name Ouachita Christian School as irrevocable owner of an
existing policy and deduct its cash surrender value.