Planned Giving Opportunities


Types of planned gifts include your will, gift of retirement funds or savings bonds, insurance policies, charitable remainder trusts, charitable lead trusts, and retained life estates. If you have established a planned gift of which we are not aware, or need additional information about making a planned gift, please contact us:

 

Bequests in Your Will
Bequests are one of the simplest ways to make a future donation to Madison Academy. You may designate a specific gift of money or other assets in your will, or you may direct a certain percentage of your estate to pass to the school. You may also decide to designate Madison Academy to receive the residue of your estate.Your gift may be given without restrictions to allow us to apply the funds to our most pressing needs, or you may specify how the funds will be used. You may also choose to make your gift in memory of someone that you have loved or admired. You may contact us before you execute your will if you would like to discuss the details related to a specific gift.
Retirement Account Gifts
You may consider a donation of a tax-deferred retirement account or a portion of a tax-deferred retirement account, such as an Individual Retirement Account (“IRA”), 401(k), TIAA-CREF, or pension account. This type of donation will provide a tax benefit for you while giving Madison Academy a significant gift without a financial burden during your lifetime.You may either designate a specific amount of your retirement account funds to be paid to the school before the division of the remainder among family beneficiaries, or you may name Madison Academy beneficiary of part, or all, of the balance remaining after your spouse’s or another beneficiary’s lifetime.It is easy to implement this change. Advise your plan administrator of your decision and sign the required forms. You may even be able to make these changes on your plan’s website. If you personally administer a plan, notify the custodian in writing, and keep a copy with your valuable papers.
Life Insurance Gifts
You may give a new or existing life insurance policy to Madison Academy to provide a significant gift at a low cost to you. By naming Madison Academy as the owner and the beneficiary of the life insurance policy, you are eligible for tax benefits.  You may also give a paid-up policy to Madison Academy and receive an income tax deduction for its value (approximately the cash value of the policy). Through the use of the life insurance policy, you may give more to the school than you might otherwise be able to afford. You may also use a life insurance policy to replace your wealth when you have made a significant gift to Madison Academy.Name Madison Academy as the owner and the beneficiary of the policyIf you continue to pay the annual premiums, the amount of the premiums will be tax deductible each year.

Give Madison Academy a paid-up policy

When Madison Academy becomes the owner of the policy, you can receive an income tax charitable deduction.

Name Madison Academy as the beneficiary or partial beneficiary of the policy

You may designate Madison Academy as the beneficiary or partial beneficiary of a policy, including policies through your employment by completing the appropriate forms with your insurance company or employee benefits coordinator.

Replace assets given to Madison Academy using a policy

You may make a significant gift to Madison Academy and use the tax savings to purchase a life insurance policy to replace the contributed funds for the future of your family. This is often called a wealth replacement trust.

Gift of Savings Bond
If you own savings bonds, particularly ones that have matured, you may consider a planned gift through the use of these bonds. You may contribute cash proceeds from matured bonds and reduce your income taxes if you itemize your deductions, or create a life income gift with the bond proceeds. You may also consider a gift with your savings bonds by bequest in your will that will provide an income tax savings for your estate and create an estate tax charitable deduction, while providing a significant gift to MadisonAcademy. The school will be able to use the entire amount of the savings bond for our programs, free from taxes. For more information about gifts of savings bonds, you may review information at www.savingsbond.gov.
Charitable Remainder Trusts
Charitable Remainder Trusts (“CRTs”) are another option for gift planning that allows you to make a gift to Madison Academy by transferring assets to the trust while providing you and/or your dependents with an income benefit for life. When the trust terminates, the school will receive the remainder trust assets. You also will receive an income tax deduction for your gift to the trust, as well as avoid capital gains taxes on appreciated assets. CRTs may be created during your lifetime or through your will, and they allow you to give Madison Academy a gift you might not be able to provide through other means.
Unitrusts
the greatest net savings for you. The unitrust allows you to receive a life income as a set percentage of the current value of the unitrust, redetermined annually. You choose the percentage when the trust is created based on certain criteria (at least 5% of the net fair market value of the trust assets as valued annually). After your lifetime, and if you wish, that of a second life, Madison Academy receives the principal of your trust.
Annuity Trusts
You may choose to create an annuity trust to provide a gift to Madison Academy and provide a secure investment for your assets. An annuity trust will pay you a fixed dollar amount every year for the rest of your life, with no investment worries or responsibilities. After your lifetime, and if you choose, the lifetime of another beneficiary, the remainder of the trust assets are available for the school to use. You decide the amount to be paid to you from the trust each year, and it will remain the same regardless of changes in interest rates and the stock market fluctuations (at least 5% of the fair market value of assets initially contributed to the trust).
Charitable Lead Trusts
Charitable Lead Trusts (“CLTs”) allow you to give the income from assets placed in a trust to Madison Academy for a period of years. When the trust terminates, the assets are returned to you or your family. Many donors like this arrangement because it keeps assets in the family, but allows them the opportunity to help the school with immediate funding needs. Your gift will qualify for a federal tax deduction, and any asset growth that occurs while the assets are held in the trust will be passed to the trust beneficiaries (your family) free from estate or gift taxes.  This type of trust may also be created during your lifetime or through your will.
Retained Life Estate
If you own property, you may consider a gift through a retained life estate. This type of gift may be attractive to you if you have no one to whom you wish to leave your home at death.  You may leave the property to Madison Academy, receive a significant income tax deduction, retain the use of the property for your lifetime, and then name the school the ultimate owner of the property.

You may consider the contribution of any real estate, whether a personal residence, a vacation home, a farm, commercial real estate or vacant land, as a gift to Madison Academy.

*Madison Academy is not engaged in rendering legal or tax advice. The purpose of this publication is to provide information of a general character only. For legal advice, please consult an attorney. Income tax references refer to federal taxes only, and individual state taxes may further impact your specific situation.