Charitable Remainder Trust (A Gift that Produces a Lifetime Income) Example: Anthony, age 70, owns appreciated XYZ stock but he feels that he cannot give it outright because he needs to invest for retirement income. By putting $100,000 worth of stock into a charitable remainder trust, he avoids all the capital gains tax, gets a tax deduction in the year he sets up the trust, and has an income of at least $5,000 per year for the rest of his life with a good possibility of increased income as the trust grows in value.
If Anthony would like to maintain control over the investments, he can do so by naming himself as the trustee and buy and sell as he wishes with no capital gains tax along the way.
Charitable Lead Trust (A Gift that Provides Income to Charity for Period of Years and then Returns the Asset to the Donor’s Family without any Tax) Example: Adam owns an office building that he built some years ago for $1M. Renting regularly to doctors’ offices, Adam knows the building (now worth $10M) produces a steady income and is likely to appreciate still further in the future. Adam would like to give the building eventually to his two children. By placing the building in a charitable lead trust, Adam can make an annual gift to TMI of $500,000 for a set period of years, while, at the same time he can transfer the building to his children with no gift or estate tax, no matter how much the building will be worth in the future.
Bargain Sales (A Sale to a Charity for Less than Market Value) Example: Mason and Sharon are TMI parents. They own a piece of highly desirable real estate worth $100,000. They would like to make a gift but need $40,000 to invest in another property. They can sell the property to TMI for $40,000, get a tax deduction for the $60,000 difference, and move forward with their new purchase.
MISSION: TMI provides an exceptional education with values based on the teachings of Jesus Christ that challenge motivated students to develop their full potential in service and leadership.
NOTICE OF NONDISCRIMINATORY POLICY AS TO STUDENTS TMI Episcopal admits students of any race, color, national and ethnic origin to all the rights, privileges, programs, and activities generally accorded or made available to students at the school. The school does not discriminate on the basis of race, color, national and ethnic origin in administration of its educational policies, admissions policies, scholarship and financial aid programs, and athletic and other school-administered programs.
TMI Episcopal 20955 W. Tejas Trail San Antonio TX 78257 phone (210) 698-7171 fax (210) 698-0715