What is a planned gift? Simply put, it is any major gift, made during one’s lifetime or posthumously, as part of a donor's overall financial and/or estate planning.
Over the years, Academy alumni and friends have left a legacy that has helped sustain the traditions that define the institution. You can be a part of that legacy by planning a gift that delivers future benefits to Houghton Academy. Planned gifts are an essential part of the school’s long-term financial strength. Building a reserve of such gifts helps the Academy plan for future challenges and opportunities.
Planning a gift to Houghton Academy can also allow you to take full advantage of the personal benefits you can realize through solid financial planning. Some of those benefits can include valuable tax advantages, augmented income for you and another beneficiary, diversifying your investments, and even the possibility of making a larger gift than would otherwise be possible.
Below are several gift plans that enable you to be a partner in Houghton Academy’s future while maintaining your present-day financial flexibility.
Note: Always consult with your attorney, tax advisor or accountant to determine the best way to document your gift intentions.
Planned Giving Options
A variety of planned gift instruments exist. Below are three suggested ways to include Houghton Academy in your estate plans.
In a Will or Revocable Trust
Your bequest can deliver a specific dollar-amount or a percentage of your estate to Houghton Academy. Such a bequest or trust distribution to the Academy can reduce the taxable value of your estate for federal estate purposes and is exempt from state inheritance taxes.
A bequest is easy to arrange (see sample text below) and does not affect your assets during your lifetime, but it helps ensure that Houghton Academy will continue to fulfill its mission for generations to come.
Percentage of estate for unrestricted purposes
"I give, devise, and bequeath to Houghton Academy, Houghton, NY (Tax Identification number: 16-0838072) the sum of ___ dollars ($___) (or a percent of the residue of my estate) or (other personal or real property appropriately described) to be used to further the mission and vision of Houghton Academy."
Specific amount for unrestricted purposes
"I give, devise, and bequeath to Houghton Academy, Houghton, NY (Tax Identification number: 16-0838072), the sum of $_______ in cash or in-kind (or ________ shares of ________stock) to be used to further the mission and vision of Houghton Academy."
You may also wish to stipulate that your bequest go to the Houghton Academy endowment fund. This type of gift will provide Houghton Academy with a lasting legacy of excellence for those who will choose to attend the Academy in the future. If this is your choice, please indicate that in your bequest language. Your financial advisor can help you with the proper wording.
Naming Houghton Academy as a beneficiary in your IRA or other Retirement Plans
Contributions to your retirement plan are made on a pre-tax basis so when withdrawals are made by you or your heirs taxes are due. One way to spare your heirs of this expense is to leave taxable assets such as IRAs and 401(k) or 403(b) plans to a charitable beneficiary and non-taxable items such as cash, investments, or real property to individual beneficiaries. Because Houghton Academy is a non-profit entity, funds left to the school are tax-exempt.
Contact your retirement plan administrator for the proper beneficiary designation form. You will also need the school’s address and tax identification number (TIN), also referred to as an employer identification number (EIN).
9790 Thayer Street
Houghton, NY 14744
Tax ID number: 16-0838072
Giving Through Remainder Trusts
There are several types of remainder trusts that can be set up during your lifetime that can benefit your family and Houghton Academy, and can greatly reduce the taxes on your estate. Please talk with your tax advisor or call the Houghton Academy Advancement office at (585) 567-8115 if you would like to consider setting up a remainder trust.