Estate and Gift Planning

List of 6 items.

• Bequest

  A charitable bequest is a revocable gift to Punahou School through your will or living trust. The reason so many people include charitable gifts in their estate plan is the flexibility of bequests. You can give a specific amount of money or a particular asset, such as stocks or real property, or a percentage of the remainder of your estate after your other bequests, debts and taxes are paid. This enables you to take care of your family first before Punahou receives anything.
  
  

  In addition to adding bequest language to your will or living trust, a simple way to leave something for Punahou is to designate the school as a beneficiary of a retirement plan, brokerage or bank account, or life insurance policy.
  
  

  Sample bequest language (PDF)

  
  Examples

  Leave a Particular Asset – Make a bequest of a specific asset, such as cash, securities, or other property to Punahou. Example: “I give (all or X percent) of my house to Punahou.”
  
  

  Leave a Specific Amount – Designate a specific amount to Punahou. Example: “I give $_____ to Punahou.”
  
  

  Take Care of Your Loved Ones First – After you have provided for your other beneficiaries, consider leaving all or part of the residue of your estate to Punahou. Example: “I give 50 percent of the residue of my estate to Punahou.”
  
  

  Contingent Beneficiary of Your Estate – Name Punahou as a contingent beneficiary of your estate in the event your other heirs or beneficiaries do not survive you.

• Charitable Gift Annuity

  A charitable gift annuity (CGA) is a contract between you and Punahou School. When you make an irrevocable gift of cash or securities, Punahou agrees to pay one or two annuitants a fixed sum for life. Your gift entitles you to a partial tax deduction, and a portion of the annuity payments is tax-free, making a CGA a smart way to supplement your income and save taxes. At the end of the annuitant(s)’s lifetime, Punahou receives the remaining value of the CGA to use in accordance with your instructions as agreed by Punahou.
  
  

  Make a gift of cash or securities to Punahou and Punahou pays you – or one or two individuals that you name – fixed annuity payments for life:
  
  Details

  • Make a gift of cash or securities to Punahou. You can create a CGA with Punahou for as little as $10,000.
  • You must be at least 65 years of age to establish an immediate payment CGA or 60 years of age to defer annuity payments.
  • Your annuity rate is based on the ages of the annuitants. For example, a 75-year-old would receive a payout of 5.8% and an 85-year-old would receive 7.8%. A CGA of $50,000 would then pay the 75-year-old $2,900 per year for life and the 85-year-old $3,900 per year for life. The older you are, the higher your annuity payment will be.

  Benefits

  • Receive an income tax charitable deduction at the time of your gift.
  • Annuity payments are backed by the assets of Punahou School and guaranteed to continue for life.
  • A portion of your annuity payments will be tax-free for gifts of cash.
  • Put your low income-producing appreciated assets to work for you.

• Charitable Lead Trust

  A charitable lead trust (CLT) uses the assets contributed to the trust to generate annual payments to Punahou for a term of years. At the end of the term, the assets remaining in the trust are returned to individual beneficiaries (typically the donor’s children or grandchildren) without passing through the donor’s estate. The CLT is an excellent way to make a significant gift to Punahou that it can use for immediate funding needs while ultimately distributing the assets to your heirs, giving them full control of the assets.
  
  Details

  • You irrevocably transfer cash, securities and/or real property to a trust.
  • During the term of the CLT, the trustee (Punahou or someone you appoint as trustee) invests the trust assets.
  • Each year, the trustee pays a fixed percentage of the unitrust’s current value, as re-valued annually, to Punahou School. If the CLT’s value goes up or down from one year to the next, its payout to Punahou School will fluctuate proportionately.
  • The CLT’s term may be for a specific number of years (10-20 years is common), one or more lifetimes, or a combination of the two. The trustee makes payments to Punahou from trust income, or trust principal if the trust income is not adequate. If trust income exceeds the charitable payment in a given year, the trust pays income tax on the excess.
  • When the trust terminates, the remaining assets pass to your family members or other beneficiaries.
  • You have the option of making additional gifts to the trust over time.

  Benefits

  • You receive a federal gift tax deduction.
  • You support Punahou School with annual payments from your trust for a term of years.
  • The beneficiaries of your trust (for example, family members) will receive all of the trust's assets when the trust terminates. Any asset growth that occurs within the trust will be distributed to your trust's beneficiaries free of gift or estate tax.
  • Your gift will benefit from expert asset management, provided by BNY Mellon.

• Charitable Remainder Trust

  A charitable remainder trust (CRT) is also an irrevocable gift that pays you income. When you make an irrevocable gift of $100,000 or more to a charitable remainder trust, you are eligible to claim a tax deduction and the trust pays you a percentage of the trust assets for life or a specified term of years. The assets are re-valued every year and have the potential to grow over time, making it an excellent hedge against inflation. Punahou can serve as the trustee of the CRT and its partner BNY Mellon will manage the investment of the trust assets. When the trust terminates, the remainder interest is your gift to Punahou.
  
  Details
  
  

  • You make an irrevocable gift of cash or appreciated property, such as securities or real property, into a CRT.
  • You can establish a CRT with a minimum gift of $100,000 for cash and securities and $250,000 for real property.
  • A CRT pays you or beneficiaries you name a minimum of 5% of the trust asset value, re-valued annually.
  • Punahou will serve as trustee of your CRT. Alternatively, you or another person you select may serve as trustee.
  • If Punahou is the trustee, it will work with BNY Mellon to manage and invest the trust assets and prepare all tax reporting documents for the trust.
  • You can also establish a CRT to take effect at your passing with assets from your estate.
  • When the trust terminates, the remainder passes to Punahou to support the school’s highest priorities or specific areas that you designate.
    
    

  Benefits
  
  

  • Provide income from the trust assets for you or loved ones for life or a term of years, depending on your circumstances.
  • Receive an income tax charitable deduction.
  • Pay no capital gains tax at the time of the gift.
  • You have the option of making additional gifts to the trust over time.
  • Convert your low-yield appreciated assets into higher yield assets and create more diversification.

• IRA Qualified Charitable Distribution

  There is a way you can make a big difference and help Punahou during this time of heightened need with a qualified charitable distribution from your IRA. If you have a traditional individual retirement account (IRA) and are age 70½ or older, you can give up to a total of $100,000 per year from your IRA(s) to your favorite charities without being taxed on the distribution. Your IRA funds must be transferred directly to the charity and no goods or services may be received in exchange for your gift.

  
  Benefits of an IRA qualified charitable distribution (or IRA charitable rollover):

  • Avoid taxes on transfers of up to $100,000 from your IRA to Punahou School.
  • Make a gift that is not subject to the deduction limits on charitable gifts.
  • Help Punahou to continue providing the level of excellence in education we have all come to expect.
  • As a result of COVID-19, we are bracing ourselves for a dramatic increase in need-based financial aid. Please help Punahou keep all current students enrolled with a gift from your IRA.

  How does it work?

  • Contact your IRA plan administrator to make a gift from your IRA to Punahou. We would be happy to send you a sample letter of instruction to your IRA custodian.
  • Your IRA gift must be transferred directly to Punahou in order to qualify as an eligible charitable distribution.
  • The maximum charitable rollover gift is $100,000 per person per year.
  • Your IRA gift can support Punahou School generally or the particular area or program most important to you.

  Please call Carrie Ogami at 808.944.5845 or email giftplanning@punahou.edu for more detailed information.

• Retained Life Estate

  A retained life estate is a gift plan defined by federal tax law that allows you to donate your home, vacation home or farm to Punahou School while retaining the right to use it for the rest of your life, a term of years, or a combination of the two.
  
  Details

  • You make a gift of real property to Punahou and retain the right to live in the property for the rest of your life.
  • You continue to be responsible for all routine expenses – maintenance fees, insurance, property taxes, repairs, etc.
  • When your retained life estate ends, Punahou School can then use your property or the proceeds from the sale of your property for the purpose you designate.

  Benefits

  • You continue to enjoy your property for the rest of your life.
  • A retained life estate give you a significant and immediate income tax charitable deduction, and may reduce estate taxes and probate costs while also providing generous support for Punahou School.
  • You can terminate your life estate early and receive an additional charitable deduction.