Planned Giving

A means of assuring that your generosity will secure the long-term future of Bellevue Christian School while allowing you to realize significant tax and financial advantages today.

The Bellevue Christian School Development Office welcomes your inquiries and is available to answer any questions.  Assistance will be provided on a confidential basis, respecting your right to privacy.  We would be pleased to provide financial calculations and projections to you and your advisors. (425) 454-4402 ext. 208

Marketable Securities

Marketable securities may be gifted to Bellevue Christian School. Making a gift of appreciated marketable securities that have been held for more than one year can be more advantageous than giving cash.

There is a two-fold tax benefit that reduces the net cost of giving appreciated securities. First, no capital gain tax is paid on the appreciation of the donated securities. Second, the donor establishes a federal income tax deduction equal to the mean market value of the securities on the date of the gift.

Depreciated securities, those that have declined in value since acquisition, should generally be sold to establish a tax loss and then the proceeds donated to BCS.

Marketable securities are frequently gifted outright to Bellevue Christian School. At other times, the gift is made in connection with the establishment of life income arrangements. This allows the donor to realize tax benefits and generate life income for up to two designated qualified beneficiaries.

Bequests (by a Will)

A bequest is the fulfillment after death of the deceased's commitment by will. For many donors, this is the most practical means of enjoying assets during one's lifetime and also making a substantial contribution to Bellevue Christian School.

Almost any kind of asset can be given to Bellevue Christian School through a bequest, including cash, securities, an interest in real estate, tangible personal property or the remainderment of retirement plans. The gift may be for either unrestricted or restricted purposes.

Bequests can be established in several forms. A specific bequest conveys a fixed dollar amount or a specific asset. A residuary bequest conveys a stated percentage of an estate after distribution of specific bequests and the payment of debts, taxes and expenses. A contingent bequest conveys part or all of the estate under certain specified circumstances.

A bequest made to qualified charities such as Bellevue Christian School is allowed as an unlimited federal estate tax deduction. The value of the estate charitable deduction is the fair market value of the property at the time of death or alternate valuation date. In addition, bequests generally are not subject to state inheritance or estate taxes.

A bequest to Bellevue Christian School can be made by creating a new will or by simply adding an amendment, called a codicil, to an existing will. It is not necessary to redraft an entire will to add a provision benefiting BCS.

Charitable Remainder Trust (CRT)

A charitable remainder trust is a split interest irrevocable trust that has charitable and non-charitable beneficiaries. An individual donor transfers property to the trust, which guarantees to pay the individual or a designated non-charitable beneficiary a fixed dollar amount or a fixed percentage of the fair market value of the trust assets, for life or a term of up to twenty years. At the termination of the non-charitable beneficiaries' interest, the trust is terminated and the remaining assets are transferred to Bellevue Christian School.

A charitable remainder trust is generally used to build retirement income, generate a higher return from currently owned assets, or to provide for a spouse, or other family member. It can be funded with cash, marketable securities, or any other asset which may be quickly converted to cash such as closely held stock, real estate, or tangible personal property.

Charitable Lead Trust

A charitable lead trust, sometimes called an income trust, is the reverse or mirror image of the charitable remainder trust. It is a split interest irrevocable trust that has charitable and non-charitable beneficiaries. The individual donor transfers property to the trust, which guarantees to pay Bellevue Christian School a fixed-dollar amount or a fixed percentage of the fair market value of the trust's assets for life or a term of years. Upon expiration of the trust, the remaining assets revert either back to the donor or to the donor-specified beneficiary as established in the trust.

Real Estate

Real estate, either commercial or residential, may be donated to Bellevue Christian School with the approval of the School's Trust and Investment Committee. The value of the real estate must be substantiated through independent appraisal.

An outright gift of real estate qualifies for a federal income tax charitable deduction equal to the fair market value of the property. This deduction, up to thirty percent of adjusted gross income, may be realized immediately, with any excess over that amount being carried up to five additional years.

Frequently, personal residences are transferred to a charity after a term of years or life. The donor lives on or uses the home or vacation property during the term of years or life. At the end of the donor's interest, the property passes to Bellevue Christian School.

In such cases, the life tenants would be expected to maintain insurance, pay property taxes, care for typical maintenance and repair items, and permit BCS to assist as appropriate. Also, the federal tax charitable deduction would be actuarially adjusted to equal the fair market value of the property minus the expected benefit of use actuarially determined, based upon the term or the actuarial life expectancy of the life tenants.

Personal Property

Personal property may be donated to Bellevue Christian School. Its value must be substantiated through independent appraisal. Examples of personal property include paintings, coins, jewelry, furniture, cars, stamps, clothes, art, musical instruments, antiques, etc.

Bellevue Christian School must be able to use the asset for educational purposes. If BCS can do this, the donor is entitled to a deduction for the full-appraised market value. If the gift is "unrelated" or will not be used by BCS to further its educational purposes, the donor's charitable contribution deduction will be reduced to the tax basis of the property.

The federal income tax deduction is equal to the fair market value of the asset on the date of the gift. This deduction, up to thirty percent of adjusted gross income, may be realized immediately, with any excess over that amount being carried up to five additional years.

Life Insurance

Life insurance policies may be gifted to Bellevue Christian School in a number of ways. The options include:

Make an outright gift of an existing paid policy to Bellevue Christian School. The federal income tax charitable deduction would be the replacement value, i.e. what it would cost the donor to purchase a similar policy.

Make an outright gift of a policy on which premiums are due to Bellevue Christian School. BCS may redeem the policy if it has cash value, cease premium payments and take a paid-up policy for less than the death benefit, or continue the premium payments from its own cash reserves or contributions from the donor. The donor's federal income tax charitable deduction is the "interpolated terminal reserve value," which the insurance company will compute.

Make an outright gift of a new policy to Bellevue Christian School naming Bellevue Christian School the owner and beneficiary.

Premium payments made by the donor subsequent to the gifting are fully deductible as a charitable contribution for federal income tax purposes.

Retirement Plans

Planned gifts of tax-deferred retirement plans, allow the donor to avoid multiple levels of taxation, thus becoming an attractive gift vehicle. Bellevue Christian School can be named the designated beneficiary of all or a portion of the residual of an individual's tax-deferred retirement plan(s) or tax deferred compensation. This could include IRAs, 401K plans, defined benefit and defined contribution retirement plans and non qualified deferred compensation plans.

Assets remaining in retirement plans at the death of the plan-holder are received as income in respect to the decedent ("IRD"). From a tax standpoint, "IRD" represents costly words. IRD assets are subject to multiple levels of taxation including income taxes and estate taxes as well as possible excise taxes and generation skipping transfer taxes.

Designating Bellevue Christian School as a residual beneficiary does not limit the donor's ability to withdraw these funds and use them as needed during the donor's lifetime.

If you have read this far, congratulations! Contact us for any assistance, or let us know if we have erred in any information.  (425) 454-4402 ext. 208