Legacy Giving and the 1624 Society

In 1624 Edward Latymer left various plots of land in his will to establish a charity. That one gesture of leaving property, left in a visionary gift, led to the creation of Latymer Upper School which has educated thousands of young people in its more than 380 year history. You too can leave a gift to Latymer. Leaving a legacy to Latymer Upper School is an easy and straightforward thing to do that will have significant impact on the School that may have played an important role in your life.

Why Does Latymer Upper School Need Gifts like Legacies? I Thought The School Received Fees?
Throughout its history, Latymer Upper School has had many different ways of paying its expenses - Foundation places, Direct Grants, Assisted Places and Fees. None of these methods has ever provided more than the minimum costs of educating a pupil. This bare minimum income structure has taken its toll over many years. Today the School finds itself with a lack of cash reserves, lack of scholarship funding, and deferred site maintenance issues that need to be addressed. Significant investment is needed in the school beyond what can be supplied in annual tuition. Income, in the form of gifts, is needed to support fees so that Latymer may retain its inclusivity and its fiscal and physical health well into the future. Legacies are a very important way to put Latymer on a surer financial footing for the future.

How Do I Establish a Legacy?
To establish a legacy you should speak to your solicitor about adding Latymer Upper School to your existing will or a new will that you are creating. It is important to regularly check and update your will, as you may want to include new children or grandchildren or modify arrangements due to either death or divorce. We have included some sample wording below regarding legacies to Latymer that you may wish to share with your solicitor.

What May I Leave to Latymer Upper School?
The School welcomes gifts of all sizes and types. You could leave money, an item of value (jewellery, property or shares, art work, etc) or the "residue" of your estate - what is left after you have provided for your close relatives. It is often a good idea to specify a proportion rather than an actual amount, as it is difficult to predict what your estate will be worth or how much your family will need by the time of your death.

Are there Tax Advantages for My Family or Me in Leaving a Legacy to Latymer?
The short answer is yes - though each situation is unique. Generally speaking, when someone dies all of their assets and liabilities pass to their estate. If the estate value, after the settlement of funeral expenses and any debts, exceeds a certain amount (£285,000 in 2007), inheritance tax (40% in 2005) is charged on the balance. Certain assets, including anything left to a husband or wife are excluded from the calculation, as is anything left to a UK charity, such as Latymer.

Example:

What Exactly ARE these different types of Legacies:
As mentioned above, gifts of sizes and types will make a real difference to the ongoing vitality of Latymer Upper School. These types of legacies have different names and your solicitor can help you decide what type makes the most sense for you:

• Bequests of Money- Latymer Upper School is a registered charity with the Inland Revenue. All bequests of money to the School are exempt from inheritance tax. Money that would normally go to the Inland Revenue may be directed to Latymer Upper. Currently the rate of Inheritance Tax is 40%.
• Specific Bequests - Gifts to Latymer of jewellery, shares, property, artwork or any other items that have monetary value attributed to them reduce the taxable value of your estate just as in leaving money.
• Residuary Bequests - As mentioned above, it is a good idea to specify a proportion of your estate rather than an actual amount, as it is difficult to predict what the future will hold. A residuary bequest is an attractive method as it maintains the stated percentage of your estate that you have gifted to Latymer, other charities, family, friends, etc. This type of bequest protects each party equally against a decline in the value of your estate as well as allowing all to enjoy any gains in your estate over time. The value of the residuary estate is the value of your taxable estate after specific bequests and inheritance tax that is retrospectively adjusted downwards to take into account that which is left to Latymer and others.
• Reversionary Bequests - Individually identified assets are willed to Latymer Upper School with the understanding that the School will receive them after their use by your nominated beneficiary. The assets are taxable on your death - but not on the death of the nominated beneficiary.

Can I Direct How Latymer Will Use My Gift?
You are encouraged to leave the use of your gift to be decided at the discretion of the Latymer Foundation Governing Body. However, all preferences noted in your estate plans will be respected to the full extent possible. You may wish to think about designating your gift to: Important Capital Projects, Scholarships, Reserve Endowment Funds, or The Discretion of the Board of Governors.

Does Latymer Have Any Sample Legacy Wording I Might Share with My Solicitor?
You should always consult your solicitor about items relating to your estate plans, as there are many requirements to meet and many variations in each personal circumstance. However, some general wording to share with your solicitor would be as shown below, which includes alternative wording for different types of gifts:

"I/We give free of tax to the Governors of The Latymer Foundation at Hammersmith (Charity Registration No.312714)

EITHER
the sum of £___________
OR
______% of the residue of my estate
OR
the sum of money ('the Index-Linked Sum') produced by dividing the sum of £_______('the Original Amount') by the index figure in the Index of Retail Prices ('the Index') for the month in which this Will/Codicil is executed and multiplying it by the index figure in the Index for the month in which my death occurs Provided That if the Index is no longer in existence at the date of my death or the basis of its computation has been altered my Trustees shall compute the Index-Linked Sum in accordance with such formula as seems in their absolute discretion to be fair and reasonable so as to enable the Original Amount to be increased in accordance with inflation

absolutely and I/we direct that the written receipt of the person appearing to my Trustees to be the treasurer or other competent officer for the time being of The Latymer Foundation at Hammersmith shall be a full discharge to my Trustees who shall not thereafter be concerned as to the application of this gift."

How Does the 1624 Society Relate to Legacy Giving?
The 1624 Society is named in obvious reference to Edward Latymer's visionary bequest of 1624 that allowed for the creation of Latymer Upper School. Those individuals who have informed Latymer Upper School of their bequest intentions will, if they desire, be a part of this society. Your name will be recognised in appropriate publications, you will receive regular letters from the Head, and you will be invited to an annual luncheon or dinner with the Head as well. This is Latymer's opportunity to recognise your generosity and thoughtfulness.

What If I Wish to Be Anonymous in my Intentions?
The school will, of course, honour the privacy of any legacy donor who wishes to remain anonymous.

What if I Would Like My Gift to Serve as a Tribute or Memorial?
Legacy gifts are frequently named funds or gifts that are named as memorials to those leaving the gift or in honour of a family member, favourite teacher, memorable date etc. You are encouraged to share your intentions in this area with your solicitor or to speak with a member of the Latymer Development Office staff. Naming styles could include: The John Smith, OL'22 Scholarship, The Geoff Grimsey Classics Wing, The Smith Family Scholarship for the Study of Science, etc.