Families expressing their thoughtfulness for future generations by including Chesapeake Bay Academy in their estate planning.
Planned giving can be an important part of your estate planning and is one way to ensure your continued support of CBA. By including CBA in your estate plan, you make a strong statement of confidence in our school and ensure our continued ability to serve our important mission. CBA’s planned giving program also includes generous donors who name CBA as a beneficiary of insurance instruments.
The Legacy Society recognizes those individuals who have made provisions in their estate plans for CBA.
STEPS TO PLANNED GIVING
WILLS AND CHARITABLE BEQUESTS
A Will is a key component of your estate plan which enables you to care for your estate, your family, and the organizations you value beyond your lifetime. As a family member who understands the value of the Chesapeake Bay Academy educational experience, you can make sure that future generations of students reach their full potential by including a charitable bequest in your Will for CBA. Simple language can be included to set up a bequest when you prepare a new will or add a codicil to an existing one. You can structure the bequest to leave a specific item or amount of money or leave a percentage of your estate to CBA. The lasting impact of your bequest will continue to help many students and their families.
Example: A CBA alumni grandmother is grateful for the education her grandson received at Chesapeake Bay Academy. He struggled at other schools prior to attending CBA because of his dyslexia. Soon after enrolling in CBA, his grades improved, his self-confidence soared, and his frustrations disappeared. After graduating from CBA, the grandson is now attending a 4-year college.
Thrilled with the success her grandson had achieved, the alumni grandmother wanted to give back to the school that had had such a major impact on the grandson’s accomplishments. She met with a CBA Development professional and her lawyer to discuss a specific bequest amount that would support other students who would benefit from the CBA experience, just as her grandson had.
While a direct donation can provide valuable tax deductions for an individual, there are other ways to support Chesapeake Bay Academy such as gifting your whole life insurance policy. Policy donations provide a much greater benefit to you as well as CBA.
Gifting a life insurance policy can reduce your taxable estate, which can save thousands of dollars in estate taxes for upper-income taxpayers. Donating a policy can also yield a current income tax deduction of the policy’s fair market value—a significant deduction in some cases. Perhaps most importantly, CBA will receive the entire face value of the policy upon the death of the insured. Naming Chesapeake Bay Academy as the beneficiary of your life insurance policy is a simple process. We recommend that you consult your insurance agent for information.
By either gifting a policy outright or naming CBA as a beneficiary, you can provide CBA with a gift that will provide a lasting legacy that will help students for many years.
Example: Mr. & Mrs. Smith purchased a $250,000 whole life insurance to cover the education of their two children should something happen to either of them. Both children have graduated from college. Now that the children have careers and are living independently, Mr. & Mrs. Smith have asked their insurance agent to add Chesapeake Bay Academy as a beneficiary of $50,000 from their life insurance policy. Mr. & Mrs. Smith are grateful to CBA for the education their youngest child received, especially because before enrolling their child, the parents were told he might not graduate from high school. Mr. & Mrs. Smith did not have the means to give such a leadership gift until now.
INDIVIDUAL RETIREMENT ACCOUNTS
If you are 70 ½ and older:
The Consolidated Appropriations Act of 2016 finally made permanent qualified charitable distributions (QCD) from individual retirement accounts. Only individuals who’ve attained 70 ½ may make QCDs. QCDs may be made from any IRS or individual retirement annuity, but not from a simplified employer pension, a simple retirement account or an inherited. To make a contribution instruct your trustee or custodian to make a transfer from your IRA directly to Chesapeake Bay Academy. Many trustees and custodians already have forms and procedures in place to make this transfer. CBA will send you an acknowledgment letter.
All Individuals Qualify
Chesapeake Bay Academy can be designated as a beneficiary of part or all the remainder of your Individual Retirement Account (IRA) or retirement plan. Distributions from retirement plans at the death of the survivor of the account-holder can be subject to both income and estate taxes. By naming CBA as the beneficiary of the remainder of your retirement plan, 100 percent of the plan’s balance is available for CBA to use because charitable organizations avoid both income and estate taxes. You may also designate a specific amount to be paid to CBA.
To make this gift, you must notify your plan’s administrator and complete a “change of beneficiary” form.
Example: The grandfather of a Chesapeake Bay Academy alumni student was diligent about setting aside money for retirement when he first became a father. He now has many assets to pass along to his children and grandchildren. Not wanting to burden his family with taxes they would have to pay by being the beneficiaries of his retirement fund, the grandfather spread the wealth from his retirement fund to charities that he supported. Knowing that CBA transformed the life of his granddaughter and gave her the skills necessary for success after graduation, the grandfather designated $25,000 be paid to CBA in her honor.
GIVE THE GIFT OF STOCKS, BONDS OR MUTUAL FUNDS
One of the most financially sound ways to give is through the transfer of stock. Donors have the capacity to allow stock, bonds or any other securities to be transferred as gifts to CBA. Giving the gift of stock has significant benefits for the contributor. For example, if a security has appreciated in value, the holder may choose to donate it as a gift as part of a tax planning strategy (please consult a tax advisor for advice related to your personal circumstances.
FOR MORE INFORMATION
Please contact Cami Best-Jones, Director of Development, if you are interested in including CBA in your estate plan. CBA would be honored to have you become a member of the Legacy Society. firstname.lastname@example.org • 757-497-6200 x1424