A charitable bequest is a very simple way of making a generous gift to Claremont School of Theology. When drafting or updating your will, we encourage you to consider including Claremont as a beneficiary of your estate, creating a legacy that will help ensure excellent theological education for future generations.

Bequests can be made for general unrestricted use by the School or you may choose to restrict your bequest gift for a designated purpose. There are several kinds of bequest gifts, but whichever you choose, it's important that your intentions be specified in writing, using appropriate language. We encourage you to review the following options with your advisors.

As its name suggests, the specific bequest provides a gift in a specific dollar amount, or of specific assets. Such a gift can be conveyed as follows:

"I give to Southern California School of Theology, a California corporation doing business as Claremont School of Theology, located in Claremont, California, the sum of $________________ or ________________(name of asset) for the general uses and purposes of said institution."

A percentage division of your estate keeps all bequests in proportion to one another, even as specific financial circumstances may change. Such a bequest may be conveyed as follows:

"I give to Southern California School of Theology, a California corporation doing business as Claremont School of Theology, located in Claremont, California, (percentage amount) of my total estate disposed of by this will, to be used for the general uses and purposes of said institution."

Alternatively, you may choose to designate Claremont as a residue beneficiary of your estate. In that case, the School will receive the assets remaining after other bequests have been fulfilled. The following language might be used in conveying such a bequest:

"I give the residue of my estate (or you may state a percentage of the residue) to Southern California School of Theology, a California corporation doing business as Claremont School of Theology, located in Claremont, California, to be used for the general uses and purposes of said institution."

Through your will, you may also establish a testamentary trust. Such a trust supports selected beneficiaries during their lifetime, after which trust assets are assigned to Claremont. Language such as the following can be used to establish a testamentary trust:

"Upon the death of (name/s), or upon my death if (she/he) fails to survive me, the entire balance then remaining of the trust estate shall be distributed to Southern California School of Theology, a California corporation doing business as Claremont School of Theology, located in Claremont, California, for the general uses and purposes of said institution."

Note that alterations in family status, changes in the law, alterations in the value of property you own, and so on can make your estate plan obsolete. Whichever form of bequest gift you choose, we therefore encourage you to update your will and any other plan documents as your circumstances change. Claremont encourages you to have a qualified attorney prepare or revise your estate plan.

A gift annuity is a contract whereby you (and/or another beneficiary, if desired) exchange a gift of money or securities for a fixed income for life. The amount of annual income is based on your age/s at the time the annuity is established. After your income payments begin, a significant portion of each payment is exempt from income tax when you donate cash for the annuity. You are also allowed a potentially significant charitable income tax deduction in the year the gift annuity is created.

The deferred payment gift annuity differs from a regular gift annuity in that payments begin at a date in the future, such as the year you expect to retire. This gift vehicle allows you to make a gift now and use the resulting charitable deduction to lower your income taxes. Later, when you need the security of additional income, you will receive a fixed income for life.

The charitable remainder unitrust is ideally suited for those wanting to make a gift using highly appreciated assets currently yielding a low rate of return, while also desiring to avoid capital gains tax on the transfer of assets to Claremont School of Theology. You receive a unitrust amount for life in exchange for an irrevocable transfer of assets. The assets are managed as a separate fund paying a fixed percent (at least 5%) of the fair market value of trust assets as revalued each year. The percentage of the trust received as payment is agreed upon between you and Claremont School of Theology at the time of the gift. You receive a significant charitable income tax deduction in the year the trust is created.

The charitable remainder annuity trust guarantees you income for life at a fixed dollar amount in return for an irrevocable transfer of money or appreciated assets to the school. When the trust is created you set the dollar amount, which must be at least 5% of the value of the assets used to fund the trust. Capital gains tax is entirely avoided on the transfer of assets to the trust. Plus, you are entitled to an immediate charitable income tax deduction.

Unlike the previously mentioned trusts, the charitable lead trust distributes income to Claremont School of Theology rather than you. After a specific period of time, the trust assets revert to you or are distributed to others (usually family or friends). There may be significant benefits, including possible estate and gift tax savings.

You receive an immediate charitable income tax deduction by deeding your home or farm to Claremont School of Theology while reserving the right to use the property for life (a retained life estate). Your charitable income tax deduction will be a portion of the present fair market value of the property, depending upon your age, amount of depreciation, and IRS tables. While continuing to be responsible for taxes, insurance and maintenance, you also keep any income earned by the land. Upon your death, and the death of your spouse, the School is free to dispose of the property and retain the proceeds. With this type of gift, you receive an immediate charitable income tax deduction and the value of your home or farm is removed from your taxable estate.

Your retirement plan will be subject to income tax after your death and may be subject to estate tax if you leave a large estate. You can avoid these taxes by naming Claremont School of Theology as a beneficiary of your qualified retirement plans, such as individual retirement accounts (IRAs), 401(K)s, 403(b)s, Keoghs or other plans. Simply ask the administrator of your plan for a death beneficiary change form, and indicate the amount or percentage of assets you wish to be transferred to Claremont School of Theology following your lifetime. Your spouse may need to consent to your designation.