The Lincoln Academy Heritage Circle Planned Giving Program

The Circle enables donors to ensure future funding for the Academy through bequests and other forms of estate planning. A planned gift is a wonderful way to remember family members or a favorite teacher. If you inform the school that you have included Lincoln Academy in your will or have made other plans that benefit the school, you become a member of the Lincoln Academy Heritage Circle.

Planned gifts are a great benefit to the school, and can also benefit the donor by reducing estate taxes and giving more control over an estate. Gifts such as a Charitable Remainder Unitrust enable you to:

  • increase retirement income
  • reduce estate taxes
  • avoid capital gains tax on appreciated assets
  • increase federal tax deductions

These plans are customized for each donor.

 

For those in the Lincoln Academy family who are 70 ½ years of age, or approaching it, who must take required minimum distributions from a traditional (pre-tax) IRA:

Congress has renewed some expired tax laws that can help the individuals described above make a significant gift to Lincoln Academy and come out ahead in their personal finances.

Taxpayers age 70½ and older are required to take annual distributions from their IRAs, which then are included in their adjusted gross income and subject to tax. The IRA charitable rollover permits taxpayers to make donations directly to charitable organizations from their IRAs without counting them as part of their adjusted gross income. This rollover distribution counts toward the required minimum distribution for IRA holders.

To make a gift to Lincoln Academy using the IRA charitable rollover:

  • Contact your IRA administrator or Financial Advisor  and authorize them to send a check from your IRA directly to Lincoln Academy.
  • Ask your IRA trustee or administrator to clearly reveal this is an IRA rollover provision gift for 2017 and identify you as the IRA account owner.
  • Be sure to have your administrator include how and where Lincoln is to use your IRA gift i.e.(unrestricted Lincoln Fund or Endowment).
  • Send your IRA Charitable Rollover gift to:
    Lincoln Academy Development Office
    81 Academy Hill
    Newcastle, ME 04553

Planned Giving FAQs

What is the first step?

Make a confidential telephone call to the Alumni and Development Office at (207) 563-3599 or stop by at the Academy. We will be happy to assist you in developing a charitable planned giving program tailored to your specifications.

What is the best method of giving for me?

The decision as to which vehicle to use is personal and should be decided with the help of your financial advisor and the Development Office at the Academy. Factors such as your age, life expectancy, assets, heirs, and income should all be considered. The Academy is always at your service at no cost to you, respecting your confidentiality and willing to work with your accountant, attorney, or financial advisors.

The Outright Bequest

The outright bequest is the most common means of  remembering the Academy. A bequest is a provision in your will or living trust that directs that a portion of your estate should be transferred to The Foundation at a time subsequent to your death. There are many types of outright bequests, to learn more please contact Matt Goetting at (207) 563-3599.

Do I need a lot of money to make a gift to the endowment?

No, there are many ways to give, meeting both your needs and the needs of the Academy. Your attorney, accountant, or financial advisor can provide additional advice on which charitable option is best for you.

How does a planned gift differ from an annual gift?

Planned gifts are often deferred and you are able to designate how the money will be used in the future. Some planned gifts are immediate and are part of an estate plan to benefit Lincoln Academy and yourself.

Estate Tax Benefits

 Your bequest to Lincoln Academy will reduce the size of your estate, saving considerable taxes if your net worth is above the estate tax exemption limit allowed by law. A bequest is the most effective means of avoiding estate taxes. Through your will or living trust, you can create charitable gift plans that offer tangible benefits to your heirs, and then to Lincoln Academy. These plans can be modified or rescinded by you anytime prior to your death. Your estate may be eligible for significant tax savings through the use of these plans.

Income to Beneficiaries

A Charitable Trust or Charitable Gift Annuity can be created today or through your estate plans to provide the beneficiary(ies) you name with an income over time rather than a lump sum distribution. Once the beneficiary’s income interest in the agreement ends, the remaining principal comes to Lincoln Academy.

Give What Is Left in Your Pension Plan

One of the most tax advantageous gifts you can make to Lincoln Academy may be through your Individual Retirement Account (IRA), 401 (k) plan, Keogh plan, or other qualified retirement savings plan. This is because assets remaining in these plans will be taxed more heavily than the rest of your estate. Income taxes must first be paid, then any estate taxes due will be collected before remaining funds are distributed to heirs. In some instances, 70% of the assets in a retirement plan can be consumed by taxes.

You can avoid the income and estate tax simply by changing your beneficiary designation to name Lincoln Academy as the recipient of any assets remaining in your plan.

You can also make a testamentary transfer of remaining pension plan assets to a charitable trust. Your estate receives a tax deduction for the remainder interest coming to Lincoln Academy, and your heirs are taxed only on the annual income flowing through the trust.

Charitable Gift Annuity

A Charitable Gift Annuity is an easy way to give yourself – and the Academy – greater security in the future.  Charitable Gift Annuities provide a long term annual income to you (and/or another person you choose), while easing your income tax burden. In addition, if you fund the annuity with appreciated long-term assets, you may reduce a portion of capital gains taxes. Gift Annuity rates are determined by the age of the person receiving the income payments.

Charitable Remainder Trust

Through a charitable remainder trust you can make a significant gift to Lincoln Academy while providing income to yourself and/or another beneficiary for life or for a specified number of years. Assets are irrevocably transferred to a trustee of your choice, who manages and invests the trust assets. Regular payments are then made to you, or to other beneficiary(ies) you choose, for life or a specified number of years. After the lifetime of the income beneficiary, the trust assets are left to Academy.

Life Insurance

You can name Lincoln Academy as the death beneficiary of a life insurance policy, while keeping the lifetime ownership rights (the right to borrow against it or cash it in). Your estate will be entitled to a charitable deduction for any amount passing to the Academy from these arrangements.

 

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