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Planned Giving

Bequest Information – Including the AREMA Educational Foundation
in your Will

The AREMA Foundation’s official name: The AREMA Educational Foundation

AREMA Educational Foundation mailing address: 4501 Forbes Boulevard, Suite 130, Lanham, MD 20706 USA The Foundation’s telephone number: (301) 459.3200

AREMA Educational Foundation identification: A not-for-profit organization under Section 501(c)(3) of the Internal Revenue Code

AREMA Educational Foundation tax-exempt number: 54-1967188

Sample Language

“I give, devise and bequeath to the AREMA Educational Foundation for its general purposes [state fraction or percentage of the rest, residue and remainder] in my estate, both, real or personal."

OR

"I give and bequeath to the AREMA Educational Foundation the sum of $_____________ to be used for the general purposes of the Foundation."

To include a bequest solely for engineering scholarships, have your attorney include the following or a similar paragraph in your will:

"I hereby give, devise and bequeath to the AREMA Educational Foundation [whatever amount or percentage you so desire]. The use of this bequest is restricted to funding engineering scholarship grants approved by the AREMA Educational Foundation."

Have you considered naming the AREMA Educational Foundation as one of the beneficiaries of your IRA, 401(k) or life insurance? All you have to do is:

  • Contact the administrator of your retirement plan or IRA and request a beneficiary designation form.
  • Complete the form naming the AREMA Educational Foundation as a beneficiary of all or a portion of the account.
  • Return the form to the account administrator.

Charitable Remainder Trusts

A Charitable Remainder Trust provides a means for using a portion of your assets to benefit a charity while you are able to see the results of your philanthropy.

  • provide you with income during your life
  • make a gift of the remainder of the trust property to charity
  • enjoy significant tax benefits

A trust is simply a legal agreement that indicates how assets placed with a trustee will be managed. When a trust names a charity, such as the AREMA Educational Foundation as its beneficiary, it can offer a number of advantages.

The trust can be established as a charitable remainder unitrust that provides income payments that fluctuate depending on the value of the trust, or as a charitable annuity trust that provides fixed income payments established when the gift is made to the trust.

In either type of trust, a number of benefits are possible:

  • income for life
  • avoidance of capital gains taxes if the trust is funded with appreciated securities
  • immediate charitable income tax donation
  • possibility of reducing future estate taxes

Most important, for many people who establish charitable remainder trusts, is the satisfaction of knowing that they have made a significant contribution to the future of the railway engineering profession, while still satisfying their financial needs and security during their own lifetime.

Charitable Lead Trusts

The charitable lead trust is the reverse of the charitable remainder trust, as the charity (or charities) receives payments during the years the trust is in existence, as opposed to when the trust terminates. It can also be established as a charitable lead unitrust that provides annual payments that fluctuate depending on the value of the trust, or as a charitable lead annuity trust that provides a fixed payment annually.

In either type of trust, a number of benefits are possible:

  • Can be a Grantor Trust where assets revert back to you when trust ends or;
  • A Non-Grantor Trust which passes to your named beneficiaries when trust ends
  • Can be a Living Lead Trust or a Testamentary Lead Trust

A Charitable Lead Trust provides a means for using a portion of your assets to:

  • Make payments to the charity(or charities)of your choice during term of trust
  • Avoid capital gains tax (non-grantor trust)
  • Immediate charitable income tax deduction
  • Stretched protection of the gift or estate tax credits or exemption for generation skipping transfer tax (non-grantor trust)

The information contained herein is offered for general informational and educational purposes. You should seek the advice of an attorney for applicability to your own situation.

Endowment Funds

You or your company can directly fund railway/transit engineering educational activities and scholarships in perpetuity through these special gifts. The principal amount of these funds is never invaded. Only investment income is used to fund the scholarships.

Establishing a New Endowment

Creating an endowment fund is a great way to directly support AREMA Educational Foundation programs. The annual distribution from the endowment will directly support Foundation scholarship grants. An endowment fund may be established in an individual or family’s name or in the name of a company and will support vital scholarship programs long into the future.

The minimum amount required to establish a new endowment with the Foundation is $25,000. Future gifts can be added to the fund. An endowed fund may be restricted to a particular type of scholarship, as long as the conditions are not overly restrictive so as to make the granting of awards difficult or impossible.

For additional information, please contact:
Stacy M. Spaulding, CAE
Director of Committees & Technical Services
4501 Forbes Boulevard, Suite 130
Lanham, MD 20706 USA
Phone: +1.301.459.3200 Ext 706
Fax: +1.301.459.8077