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Ways of Giving to Merit
There are many ways a donor could choose to give to Merit. These are only
just a few of the myriad of choices a potential donor has. All of these
types of gifts ensure our stability. The two main categories of gifts are
outright gifts or planned gifts. You may want to work with an advisor to
figure out which type of gift is the best for you. Outright Gifts If a gift is given during the donors lifetime to the Annual Fund or another campaign at Merit, it is called an outright gift. A gift can be given as cash, check or even a gift of stock. These gifts have immediate effects on programs and operations because Merit receives the money outright. Although these gifts are necessary to keep the school running, Merit also relies on Planned Gifts to create an endowment and insurance that the same level of education Merit currently provides will be maintained over time. Planned Gifts Careful tax advice continues to be an essential tool to an estate plan, and Merit School of Music encourages you to consult your legal or financial advisor to keep abreast of changing tax laws. There are many different ways that a person could become a planned giver at Merit. The important fact to remember when considering a planned gift is to keep Merit informed of your intentions. This allows us to follow your guidelines and use your asset as you wished it to be used. When creating language for these gifts, it is best to be as broad as possible, allowing the Merit staff to allow the money to go where it is most needed. If you do have a specific request about where your money should be spent, let Merit know, and the staff will work to follow your request. A list of the more traditional planned-giving vehicles, and the tax savings and other benefits associated with each, follows.
Any time a donor leaves an asset to Merit whether from a will, trust,
IRA, retirement or insurance plan, it is called a bequest. Designating a
bequest to Merit School of Music is a basic charitable planned gift completely
free of estate and other taxes. A bequest is a statement of intent that
can be inserted in your will, codicil to a will or a living trust. A
charitable bequest can be established for a specific dollar amount or for
a percentage of an estate or residuary estate.
Naming Merit School of Music as a beneficiary or owner of a life insurance
policy prevents the insurance proceeds from being included in your gross
estate. In addition, the cash surrender value and all future premiums paid
on the policy may in certain instances be taken as a charitable deduction
on your income tax return.
Avoid multiple estate and income taxes by naming Merit School of Music as
a beneficiary of your IRAs or retirement plans. These assets are normally
subject both to estate taxes and income taxes upon death. However, if Merit
School of Music is named as beneficiary, those taxes are avoided. Charitable Remainder Trust and Gift Annuities Provide income for yourself, your spouse, or others for one or more lives by making one of these planned gifts. You may receive income now, defer the income for retirement, or use it to fund your childrens or grandchildrens future college expenses. These types of planned gifts can also be created in your will or living trust to pay income for life to others upon your death. Charitable remainder Trusts and Charitable Gift Annuities provide numerous income and estate tax benefits for you during your lifetime and for your estate at death. These include:
Click here for NEW IRA Rollover Legislation.
Avoid significant gift and estate taxes for your descendants by funding a
Charitable Lead Trust. Once established, Merit School of Music is paid
income for a term of years, at the end of which the principal of the Trust
passes directly to your family or other beneficiaries whom you name. |
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SEARCH | CONTACT US | SITE MAP | FOR FACULTY ONLY | LEGAL | OUR CORPORATE SPONSORS Merit School of Music, Joy Faith Knapp Music Center, 38 South Peoria Street, Chicago, IL 60607 © 2008 MERIT SCHOOL OF MUSIC
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For questions regarding Planned Gifts, please contact the Director of Development at
312.267.4462.