Mary Owens: Estate planning from the heart
Several months ago I wrote an article discussing the benefits of donating your Required Mandatory Distribution from your IRA to your favorite charity.
As a brief refresher, the amount of your RMD donated directly to your favorite charity is not included in your taxable income. There is a $100,000 annual cap on the charity donation limit allowed from an IRA. Simple and SEP IRAs do not qualify for this special charitable gifting benefit. This is a great strategy in particular if you do not itemize your deductions. The donation is not deductible, but the donated withdrawal is not taxable either, so there is the potential for tax savings.
Many of you are aware of my passion for education. Whether it is college or Career Technical Education (CTE), I strongly believe the best gift you can make to a loved one is the gift of an employable skill. Give them a fishing poll, not a fish, and they will eat for life. Many have written to me indicating they agree with that philosophy and wanted to know how they can contribute funds in a manner that benefit local teenagers wanting to further their education.
It is heartwarming to talk to so many people in our community that want to “Pay It Forward.” They have been blessed by others and want to return the favor to future generations. Our local educator, Bill Lane, brought to my attention a wonderful way in which to fund grants to deserving students.
The Nevada Joint Union High School District established a 501(c)3 community-based Foundation in 1998, known as the NJUHSD Foundation. The Foundation’s purpose is to secure, manage and distribute donations from individuals, businesses and other groups for the exclusive benefit of the students attending the high schools within the district. All administrative participation on the Foundation is 100% volunteer, so your dollar goes to the intended purpose for which it was donated: grants to help students further their education.
Funds raised by the Foundation will be distributed at the discretion of the Foundation Board, or you may designate the use of the funds as follows:
Funds may be used for a specific department or activity at the donor’s discretion
A memorial fund may be established with the principal to be held and income used for scholarships: or
Principal and income may be used over a period of time for a designated purpose.
There are more ways to contribute than just contributing your RMD from your IRA each year. Tax deductible cash gifts may be given to the Foundation at any time. Or if you chose, gifts of stock or other securities, or leaving a legacy through a Charitable Remainder Trust. And of course, you may also give through your estate planning by donating a portion of your estate at your death. There are many ways to give, so make sure you contact your tax or financial advisor to structure a giving plan that best suits your desires.
The story does not end here. Our community has a long history of very generous folks that have donated significant sums for the sole purpose of helping others succeed in life. One amazing example is Ida and Giles May who donated $300,000 to create the Ida and Giles May Memorial Scholarship Fund. Since the inception of this gift their foundation has given away over two hundred scholarships. The original foundation gift has been growing in value, so the future benefits of this incredible donation continue to grow as well. The Mays did not have children but understood the significant benefits of education as a pathway to the future success of our youth. Their vision and generosity will be remembered forever within our community.
The list of educational scholarship funds available throughout the district is robust. A short list of additional options for educational funding is as follows:
Barbara Gearhart Memorial Scholarship
Robert T. and Jeanne L. Ingram Memorial Journalism Scholarship
Rotary Club, Nevada City, “Buckle-Up for Safety”
Midge and Scottie Scotten Memorial Scholarship
Don Young Scholarship
William and Marian Ghidotti Foundation
If you would like to make a donation or receive more information regarding the various charitable scholarship options available through NJUHSD, please write to Nevada Joint Union High School District Foundation, P.O. Box 1707, Grass Valley, CA 95945 or send an email to email@example.com. You may also stop by our office and ask for a brochure which gives a brief outline of the program.
Thank you Nevada County for being who you are: people who care about the wellbeing of our community and its future. Preparing our youth for the future is a wise and thoughtful act.
Mary Owens, Principal/Branch Manager, RJFS, 426 Sutton Way, Suite 110, Grass Valley, CA 95945, 530-272-7500. Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC. Owens Estate and Wealth Strategies Group is not a registered broker/dealer and is independent of Raymond James Financial Services. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Neither Raymond James Financial Services nor any Raymond James Financial Advisor renders advice on tax, legal or mortgage issues, these matters should be discussed with the appropriate professional. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete. Any opinions are those of Mary Owens and not necessarily those of Raymond James. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.
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