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Legacy Society
Established 2004


Possible Tax Benefits of a Legacy Gift

While we all hope to one day provide for our heirs through our wills and trusts, did you know that you can also help Brophy with a Legacy Gift? One of the reasons to include a charitable bequest in your will is because you believe in and wish to perpetuate the mission and values of an organization. You can provide added financial stability for Brophy and help ensure a Jesuit education for generations to come, while at the same time accruing tax benefits for your estate

Here is one scenario:
Let’s say that you own stock that you bought for $20,000 and it has grown in value to $100,000. The stock is currently yielding 2%. You would like to sell the stock in order to invest the money in another asset. Doing so, however, would mean a sizeable tax bill for the capital gain on the appreciation.

One solution would be to put the asset into a Charitable Remainder Unitrust. In this example, after the trust sells the asset and reinvests the proceeds, the return is 7% a year. The trust is set up to pay out 5% per year to you for your lifetime. At the end of your life, the value in the unitrust goes to Brophy.

 

Because Brophy is tax-exempt, no capital gains taxes are paid when the trust sells the asset. Also because Brophy eventually receives a gift, you receive a charitable tax deduction the year the unitrust is set up. The following flow chart quantifies the benefits of this scenario.

There are a number of options for making charitable gifts to Brophy in your estate plans. Whatever option you choose, be assured that you will be making a lasting and deeply meaningful contribution to Brophy College Preparatory.