Lane-Glaser Society

Stocks and Investment Accounts

How It Works

• Contact your broker or investment account holder about a T.O.D. (Transfer on Death) or beneficiary designation form for mutual funds or other types of investment accounts. The Langley School’s tax ID is: 54-0673568.

Benefits

• You receive an income tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them.
• You pay no capital gains tax on the transfer when the stock or share of the investment account is sold.

Stocks and Investment Accounts: You've Planned for the Future

Investment accounts hold cash or stocks for the long term. You may have a mutual fund or a brokerage account which is held at a financial institution. The objective of these accounts is to achieve long-term growth, provide future income, or preserve capital. After your passing, the remaining account balance may be transferred to heirs or charity.

When you opened the account, you should have received a form that tells the financial institution what to do with the assets when you pass away. This form is called a "Transfer on Death" (T.O.D.) form. With it, you decide how your assets will be transferred. If you do not complete this form, you will cause unnecessary confusion among your heirs and added expense to your estate administration.

Keep it simple. Ask the account custodian for a T.O.D. form, complete it, and share it with your financial or legal advisor. You can also leave all or a percentage of the assets to The Langley School. Any portion of your investment account left to us will be exempt from estate and inheritance tax. You also avoid paying any capital gains on assets that have increased in value over the years.

U.S. Savings Bonds

You can donate savings bonds to The Langley School by designating us (tax ID #54-0673568) as a beneficiary of the bonds. By including a provision in your will, we can become the owner after your passing. By doing so, your estate will not owe income taxes when we cash them in. It's another great way to save on taxes and support Langley’s mission.

There are many types of savings bonds, so be sure to speak with your financial advisor or Head of Development Ricki Marion.

Bequests

How It Works

A gift to The Langley School in your will or revocable trust enables you to support our mission and make a difference in the lives of future generations. A bequest:

• is easy to arrange
• will not alter your current lifestyle in any way
• can be easily modified to address your changing needs

Residual Gift Language

A residual bequest comes to us after your estate expenses and specific bequests are paid:

I give and devise to The Langley School (tax ID #54-0673568), located in McLean, VA, all (or state a percentage) of the rest, residue, and remainder of my estate, both real and personal, to be used for its general support (or for the support of a specific fund or program).

Specific Gift Language

Naming The Langley School as a beneficiary of a specific amount from your estate is easy:

I give and devise to The Langley School (tax ID #54-0673568), located in McLean, VA, the sum of $___________ (or asset) to be used for its general support (or for the support of a specific fund or program).

Contingent Gift Language

The Langley School or its affiliates can be named as a contingent beneficiary in your will or personal trust if one or more of your specific bequests cannot be fulfilled:

If (insert name) is not living at the time of my demise, I give and devise to The Langley School (tax ID #54-0673568), located in McLean, VA, the sum of $ _______ (or all or a percentage of the residue of my estate) to be used for its general support (or for the support of a specific fund or program).

Retirement Plan Beneficiary Language

You may name The Langley School (tax ID #54-0673568) as a beneficiary of your IRA or other qualified retirement benefits. Donors should consult with their tax advisor regarding the tax benefits of such gifts.

Naming The Langley School as the beneficiary of a qualified retirement plan asset such as a 401(k), 403(b), IRA, Keogh, or profit-sharing pension plan will accomplish a charitable goal while realizing significant tax savings. It can be costly to pass such assets on to heirs because of heavy tax consequences. By naming The Langley School as a beneficiary of a retirement plan, the donor maintains complete control over the asset while living, but at the donor's death the plan passes to support The Langley School free of both estate and income taxes.

Making a charitable gift from your retirement plan is easy and should not cost you any attorney fees. Simply request a change-of-beneficiary form from your plan administrator. When you have finished, please return the form to your plan administrator and notify The Langley School. We can also assist you with the proper language for your beneficiary designation to The Langley School.

Customized Language

If you or your attorney would like The Langley School to provide you with customized beneficiary language that is specific to your goal and interest, please contact Head of Development Ricki Marion.

• Make your bequest unrestricted or direct it to a specific purpose.
• Indicate that you would like a percentage of the balance remaining in your estate or trust, or indicate a specific amount.
• Tell us about your gift so we may celebrate your generosity now.
   

Benefits

• Your assets remain in your control during your lifetime.
• You can modify your gift to address changing circumstances.
• You can direct your gift to a particular purpose (be sure to check with us to make sure your gift can be used as intended).
• Under current tax law, there is no upper limit on the estate tax deduction for your charitable bequests.

Life Insurance

How It Works

• Contact your insurance company to complete or update your beneficiary designations or P.O.D. (Pay on Death) form.
• Designate The Langley School (tax ID #54-0673568) to receive all or a percentage of your life insurance policy proceeds.
• You may also transfer ownership of a paid-up life insurance policy to The Langley School. We may elect to cash in the policy now or hold it.

Benefits

• Make a gift using an asset that you and your family no longer need.
• Receive an income tax deduction for the donation of a paid-up life insurance policy and estate tax savings after your passing.

Life Insurance: Make the Most of It

Life insurance is a general term that describes many types of contracts between an insurer and an individual. All life insurance policies share three key elements: an owner, an insured, and a beneficiary.

1. The Owner: The person who purchases and controls the policy.
2. The Insured: The person who is covered by the life insurance policy. That person may also own the policy.
3. The Beneficiary: The person who will receive the value of the policy upon the passing of the insured. An individual, estate, trust, or charity may be the beneficiary.

Generally speaking, most people decide to buy life insurance when they have people who are dependent upon them — children, partners, or family members. They want to provide for their loved ones after they pass away, and do this by designating beneficiaries. Life insurance can also be an important estate-planning tool and used to mitigate inheritance and estate taxes. The varieties and variations of life insurance products are endless and it's essential that you consult a trusted financial or legal advisor to understand exactly what you are buying when you purchase life insurance. Know whom you have designated as your beneficiaries and review beneficiary designations regularly.

To make the most of your life insurance contract, consider if you still really need it.

• Are your children doing well in life?
• Do you have other assets that will provide for partners and loved ones?
• Have you been more financially successful than you anticipated?
• Have your financial priorities changed and as a result you now wish to do more for The Langley School?

If you answered "yes" to any of these questions, it's time to review your beneficiary designation forms.

Any portion of your life insurance policy assets that you leave to The Langley School will be exempt from inheritance and estate taxes. You can leave all or a portion of your policy.

IRA Charitable Rollover

You can use your retirement assets to support The Langley School. An IRA rollover gift will allow you to support our work today while providing tax savings. An IRA rollover gift allows you to support The Langley School by making a gift to the school directly from your IRA. It's a great alternative to taking the taxable "required minimum distribution" (RMD), especially if you do not want or need extra income or if you have reached your deduction limit.

Eligibility

To make a rollover gift, you must be at least 70 ½ years of age.

Gift Limits

Eligible individuals can give up to $100,000 per year directly from an IRA. The gift amount will count against the donor's RMD.

Tax Considerations

While many IRA distributions are taxable, rollover gifts are not. An IRA rollover gift also allows you to give from "pre-tax" assets.

How the Gift Is Made

Contact your IRA custodian and tell him or her you want to make a "qualified charitable distribution." 

Charitable Remainder Trust

You transfer cash or appreciated property to a CRT. A CRT is a tax-exempt trust that can sell the property without paying capital gains tax and can invest the proceeds to pay you or a loved one's income.

Duration

Payments from the trust can last for the lifetime of one or more
beneficiaries or for a specified term of years.

Annuity vs. Unitrust Payout

A Charitable Remainder Annuity Trust (CRAT) pays out a fixed amount each year. A Charitable Remainder Unitrust (CRUT) pays out a percentage of the trust value each year.

Taxation of Payouts

Most CRT payouts are taxed to the beneficiary as ordinary income and/or capital gains.

Family Charitable Lead Trust

The Family Charitable Lead Trust (CLT) is funded with cash or property and makes payments to The Langley School for a specified period, then distributes the trust property to beneficiaries you select.

Duration

A CLT can last for the lifetime of one or more beneficiaries or for a specific term of years. 

Annuity vs. Unitrust Payout 

Each year, the trust pays either a fixed amount (CLAT) or a percentage of the trust assets (CLUT) to The Langley School.

Lead Trust Types

A family CLT receives property and distributes it to the non-charitable beneficiaries at the end of the term. A gift tax deduction is available to a donor who creates a family CLT. The donor’s estate receives an estate tax charitable deduction if the CLT is established at the donor’s death.