Legacy Giving

estate planning Enables You to Protect Your Assets, Minimize Your Taxes, and Benefit the people and causes you care about through Legacy giving.

Every adult has an estate, which comprises all of your assets and property. An estate plan—in the form of a will, trust, beneficiary instructions, or other instruments—provides for how your estate should be handled after your lifetime.

An estate plan ensures that your assets go to the people and organizations that you choose. By creating an estate plan, you ensure that your wishes with respect to your estate are honored. If you do not have an estate plan, state law determines who will receive your assets.

When creating an estate plan, there are many questions to ask and consider:

  • What do I value?
  • What are my assets?
  • Who should receive these assets?
  • What other objectives should my estate plan accomplish?
  • Who can help me create my estate plan?
  • Who will manage my estate?
  • How often should I update my estate plans?

Individuals often wish to support organizations they care about beyond their lifetime. There are ways to accomplish this objective while simultaneously realizing ancillary benefits:

  • Reduced or eliminated capital gains tax.
  • Lifetime income for the donor and/or another beneficiary.
  • Substantial federal income tax deductions.
  • Eliminated or reduced federal estate taxes.
  • Higher income streams from low-yielding assets.
  • Legacy provision for you and your family through a meaningful gift to a cause or causes you care about.

By naming Sun Valley Community School in your will or estate plan, you can help ensure that the school thrives forever.

Share Your Plans

If you have already named Sun Valley Community School in your will, please tell us below! Knowing of your commitment to the school allows us to thank you, honor your wishes, and maximize the impact of your future gift. Unless you instruct us otherwise, you also become a member of the Trail Creek Society.

 

Estate Planning Information

Estate Planning Vehicles

Life Insurance

Life insurance

Life insurance can be an excellent way for a donor to leverage their cash donations to Sun Valley Community School. By either naming Sun Valley Community School as a beneficiary or gifting a policy to the school outright, a donor can provide the school with a meaningful contribution and ensure that Sun Valley Community School continues to do what it does best: educate young men and women.

 

Sun Valley Community School recommends consulting with a tax professional, lawyer, and/or financial advisor for guidance if you are contemplating a legacy gift. For more information, please contact the Development Office.

Bequests

Bequests

The most common form of a deferred or planned gift to support Sun Valley Community School is a bequest contained in a donor's will or revocable living trust. A charitable bequest is a written statement in a will, which directs that a gift be made to a charity that the donor cares about after the donor's lifetime.

 

Sun Valley Community School recommends consulting with a tax professional, lawyer, and/or financial advisor for guidance if you are contemplating a legacy gift. For more information, please contact the Development Office.

Charitable IRA Distributions & Other IRD Assets

Charitable IRD Assets

Income in Respect of a Decedent (IRD) is taxable income to which an individual was entitled, but did not receive before his or her death. An IRA is a common example of IRD assets, but IRD assets also include other qualified pension assets and other types of assets. For many individuals, a gift of IRA or other IRD assets is one of the more common and tax-advantaged ways to make a planned gift.

Tax advantages of making charitable gifts of IRD assets can be significant. Charitable gifts of IRD assets do not incur income or estate taxes, and there is an unlimited charitable deduction. For persons whose estates are subject to significant taxation, heirs may realize as little as 20 percent of the original value of IRD assets because of combined state and federal taxes. (By contrast, when heirs inherit appreciated assets such as stocks and real estate, they receive a “step-up” in basis on the assets as of the date of death of the owner.) Thus, it often is beneficail from a tax perspective to give IRD assets to charity and other assets to heirs.

 

Sun Valley Community School recommends consulting with a tax professional, lawyer, and/or financial advisor for guidance if you are contemplating a legacy gift. For more information, please contact the Development Office.

Charitable Remainder Annuity Trust

Charitable Remainder Annuity Trust

You can establish a charitable remainder annuity trust (CRAT) that benefits Sun Valley Community School by irrevocably transferring assets—cash, securities, or other property— to a trustee who subsequently makes fixed annual payments to you and/or other beneficiaries. At the end of the trust term, the remaining assets go to Community School for a mission-aligned purpose which you designate.

The amount of the annual payment to you and/or other beneficiaries is determined when you establish the trust. (Annual payments must be at least 5 percent of the trust assets' initial fair market value and are most often taxable to the beneficiaries.) There can be substantial tax advantages to establishing a CRAT, in addition to supporting a cause you care about.

Potential BENEFITS

  • Receive fixed annual payments for a specified time period
  • Reduce capital gains tax on the transfer of appreciated assets
  • Obtain an income tax charitable deduction
  • Minimize estate taxes
  • Choose who administers your gift and invests its assets
  • Support Sun Valley Community School

Example: Mr. Smith owns appreciated securities that originally cost him $30,000 and are now worth $100,000. He donates these securities to Sun Valley Community School to fund a charitable remainder annuity trust, naming his wife, age 65, as the lifetime beneficiary. The trust agreement provides for annual payments to Mrs. Smith of 5.3% ($5,300/year) of the initial trust principal for life. Mr. Smith qualifies for an income tax deduction of more than $37,000. Additionally, he avoids the tax on the $70,000 in appreciation that would have resulted had he sold the securities. At the end of Mrs. Smith’s lifetime, the trust principal will pass to Sun Valley Community School for the purpose designated by Mr. Smith (e.g. scholarships or endowment).

 

Sun Valley Community School recommends consulting with a tax professional, lawyer, and/or financial advisor for guidance if you are contemplating a legacy gift. For more information, please contact the Development Office.

Charitable Remainder Unitrust

CHARITABLE REMAINDER uniTRUST

You can establish a charitable remainder unitrust that benefits Sun Valley Community School by irrevocably transferring assets—cash, securities, or other property— to a trustee who subsequently pays a percentage of the unitrust's value each year to you or another beneficiary. At the end of the trust term, the remaining assets go to Sun Valley Community School for a mission-aligned purpose which you designate.

Each year, you receive a fixed percentage of the unitrust's current value, as determined annually. If the unitrust gains in value, the annual payment will increase proportionally—providing a potential hedge against inflation. Likewise, if the unitrust's value decreases, the payment amount will go down. A unitrust provides more flexibility than many other life income plans and also offers important tax advantages.

POTENTIAL BENEFITS

  • Provide a designated beneficiary with income
  • Realize the possibility of income growth
  • Eliminate capital gains tax on the transfer of appreciated assets
  • Obtain an income tax charitable deduction
  • Reduce estate taxes and probate costs
  • Choose who administers your gift and invests its assets
  • Support Sun Valley Community School

Example: Mr. Smith, age 68, transfers appreciated securities that cost him $100,000 and are now worth $500,000 to a unitrust with an annual payout rate of 6 percent. He is to receive payments for life. At the end of his lifetime, the unitrust assets will create a scholarship endowment at Sun Valley Community School. Mr. Smith's charitable deduction is about $236,800, and it can be used over six years. Under the provisions of the trust agreement, Mr. White's first annual payment will be $30,000, a significant portion of which may be taxed at the lower 15 percent capital gains tax rate. In year two, assuming an 8 percent total annual investment return, the trust will have a principal balance of $510,000, and the payment will be $30,600. Assuming the same 8 percent total return, the payment in year three will be about $31,200, and so on for life. Mr. Smith may also completely avoid the tax on the gain he would have incurred had he sold the property instead of donating it.

 

Sun Valley Community School recommends consulting with a tax professional, lawyer, and/or financial advisor for guidance if you are contemplating a legacy gift. For more information, please contact the Development Office.

Charitable Lead Trust

Charitable Lead Trust

A charitable lead trust is often viewed as the opposite of a charitable remainder trust. Like a charitable remainder trust, charitable lead trusts offer a reduction in capital gains tax as well as other potential tax deductions. The difference is that Sun Valley Community School receives a fixed income or a percentage of the trust's value during your lifetime, and after your lifetime, your named beneficiaries receive the remainder of the trust’s assets.

POTENTIAL BENEFITS

  • Reduce capital gains tax on the transfer of appreciated assets
  • Receive an income tax charitable deduction
  • Minimize estate taxes
  • Choose who administers your gift and invests its assets
  • Support Sun Valley Community School

Example: Mr. Smith puts $1,000,000 in a twenty-year charitable lead trust to benefit Sun Valley Community School. The trust agreement stipulates that the School is to receive $70,000 annually according to the trust agreement. At the end of the twenty-year term, Mr. Smith’s son, John, is to receive the trust principal. For tax purposes, only the remainder interest is subject to tax. In this case, the IRS estimates that the value of the trust principle (according to Treasury tables) to be about $222,500. In actuality, the trust principal grows to $2,597,000 (assuming a 3 percent annual net return), and this is what John receives. The difference between the value of the remainder interest and the actual trust value is about $2,375,000, which passes to John, free of transfer tax, and Mr. Smith is only obligated to pay tax on the value of the remainder interest ($222,500).

Sun Valley Community School recommends consulting with a tax professional, lawyer, and/or financial advisor for guidance if you are contemplating a legacy gift. For more information, please contact the Development Office.

Web Resources for Estate Planning

Creating an estate plan is important no matter your age. An estate plan should reflect your values, take into account the important people in your life, and be responsive to your unique circumstances. The process needed to develop an estate plan need not be complicated. To get started, we have listed several resources below, in alphabetical order, that you may find helpful.

 
Sun Valley Community School recommends consulting with a tax professional, lawyer, and/or financial advisor for guidance if you are contemplating a legacy gift. For more information, please contact the Development Office.

Bequest Language

Legal Designation

If you wish to include Sun Valley Community School in your will or estate plan, we should be named as:

Sun Valley Community School, Inc., a nonprofit corporation, organized and existing under the laws of the State of Idaho, with principal business address of PO Box 2118, Sun Valley, ID 83353.

Tax ID: 82-0307094

Date of Incorporation: 1973

Sun Valley Community School is tax exempt under section 501(c)(3) of the Internal Revenue Code and is an organization described in sections 509(a)(1) and 170(b)(1)(A)(ii) of the Code.

Sun Valley Community School uses unrestricted charitable gifts to support its top strategic priorities. If you have a specific purpose in mind, please contact the Development Office to make sure that we can accommodate your desired purpose.

If you have included Sun Valley Community School in your estate plans, please let us know. Unless instructed otherwise, we will honor you as a member of the Trail Creek Society.

Sun Valley Community School 501(C)3 Designation Letter


Share Your Plans!

TRAIL CREEK SOCIETY

The Trail Creek Society honors those individuals who have informed us that they have included Sun Valley Community School in their estate plans. Since 1973, generous alumni, faculty, parents, and friends have ensured the continued strength of Sun Valley Community School by including the school in their philanthropic planning. By making a provision for Sun Valley Community School in your estate planning, you become a member of the Trail Creek Society. For more information about the Trail Creek Society, or to notify us that you should be included as a Trail Creek Society honoree, please contact the Development Office.

 

Honor Roll


Peggy & John Baker

Barbara Boswell

Katherine O'Malley & Rob McGowan

Charlotte Unger

Our family has been at Sun Valley Community School for 15 years for a total of 35 academic years. Our three children are each very different, and the school has accommodated them superbly to help them reach their fullest potential. We love the school and want to see it continue to flourish and improve by including it in our plans.Peggy Baker, Sun Valley Community School Parent and past Board Director

 

Sun Valley Community School is a communal enterprise. Our ability to educate current and future generations of Cutthroats rests, in large part, on the philanthropy of our community. I am grateful to those who have remembered the school in their legacy planning and helped ensure that Sun Valley Community School will live forever.Ben Pettit, Head of School