-Use the
following language for your parish;
"St. Teresa's Catholic Church of Lincoln". For your school use "St.
Teresa's Catholic Grade School of Lincoln".
-An example
of wording in your will for gifting a percentage of your estate;
"I give, devise, and bequeath to St. Teresa's Catholic Church of Lincoln
10% of the total value of my estate for its general uses and purposes."
-An example
of wording in your will for gifting a specific amount;
"I give, devise, and bequeath to St. Teresa's Catholic Church of Lincoln
the sum of $25,000 for its general uses and purposes."
- An example of wording in your will for gifting a residuary amount (where
the Church receives the remainder your estate after all your bequests are
granted, and your bills paid);
"All the rest, residue and remainder of my estate, both real and personal,
including any property over which I have power of appointment, I give, devise
and bequeath to St. Teresa's Catholic Church of Lincoln to be used for its
general uses and purposes"
If you are concerned with having enough income in the future but still want
to make a significant gift, a bequest is a good option.
-You can change or modify your will at any time. A bequest offers flexibility. Consult with your attorney to make changes to your will.
-Leaving an asset to your parish or Catholic school in your will removes that asset from you estate saving possible estate taxes.
The type of planned gift you make depends on your estate plan and your overall needs. Our office is available to meet with you to determine the best gift that fits your financial and charitable needs. It is important to always consult with your attorney and professional advisor before making a decision.
2)Gift
Annuity
-You
make an irrevocable gift to your parish or Catholic school and it provides
income to you for life.
- Gift annuity rates range from 5 to 11% depending on your age.
-If you have stock or another appreciated asset you can contribute it to a gift annuity and avoid capital gains.
-You receive annual payments.
-You fund it with cash, securities, tangible property or real estate.
-Your annual income depends on your age.
-You receive an income tax deduction for a portion of the value of your gift the year you make it.
-If you desire to make a gift but need stable annual income, a gift annuity is an option.
-The asset you use to fund your gift annuity is removed from your estate saving you possible estate taxes.
3)Charitable
Trusts
-You make an irrevocable gift and receive income payments like a gift annuity.
The difference is a charitable trust is a larger gift ($100,000 or more) and
offers you more options.
-You can receive quarterly, semi-annual or annual payments.
-You can create a trust
that allows you to make additional payments when you desire or have the financial
need.
-You can create the trust to last for a period of years.
-You receive an income tax deduction for a portion of the value you make the gift in the year you make it.
The asset you use to fund
the trust is removed from your estate saving you possible estate taxes.
The type of planned gift you make depends on your estate plan and your overall
needs. Our office is available to meet with you to determine the best gift
that fits your financial and charitable needs. It is important to always consult
with your attorney and professional advisor before making a decision.
4)Life
Insurance
-Donate either an old paid up policy, or start a new policy.
-In both cases, make your parish or Catholic school the owner and beneficiary of the policy.
-Your parish or Catholic school can be named as secondary beneficiary, after your spouse or your children.
-A paid up policy gives you a tax deduction equal to the cash value of the policy.
-Donating a new policy allows you to deduct the full value of the annual premiums you pay.
-When you make the Church the owner and beneficiary of the policy, it removes the life insurance from your estate, saving you possible estate taxes.
The type of planned gift
you make depends on your estate plan and your overall needs.
Our office is available to meet with you to determine the best gift that fits
your financial and charitable needs. It is important to always consult with
your attorney and professional advisor before making a decision.
IRA Gifts
For a growing number of people, an IRA currently makes up at least 10% of their estate value. For some people as much as 50% or more of their estate is held in an IRA.
While you currently cannot avoid paying taxes on gifts from an IRA during your life, it is possible to make charitable gifts after your death and avoid income and estate taxes. In fact, if you are considering making a charitable gift part of your estate plan, gifts from your IRA are highly recommended.
As a general rule, a charitable bequest of an IRA is very advantageous to both you and your heirs. Most inheritances are not subject to income taxation. But a person who receives a distribution from your IRA after your death must usually pay income tax upon receipt of your bequest. The legal definition of a payment from an IRA is called Income in respect of a decedent. If your estate is subject to estate taxes, your IRA gift is further depleted by the payment of estate taxes on top of the deferred income taxes.
EXAMPLE: Assume mother’s total taxable estate is $1,100,000 and that it will be given to her sole heir, her son. If the mother has a $100,000 IRA to be distributed to her son, then the combined estate and income taxes on the $100,000 of IRA assets would be $65,315. The son would only get to keep $34,685.
Why pay those taxes? Instead of leaving your heirs money from your IRA, you can name your parish or Catholic school as a beneficiary and leave your other assets to your heirs. Your parish or school receive the full benefit of your gift that will assist them in their ministry to the work of the Church.
Two helpful tips in making charitable gifts from your IRA:
1) NAME YOUR PARISH OR SCHOOL AS A BENEFICIARY ON THE FORMS PROVIDED BY YOUR RETIREMENT PLAN.
Your will does not govern your IRA, your forms do. Make the charitable gift on your beneficiary forms, not your will. Usually you will want to avoid naming the estate as a beneficiary on your forms.
2) YOUR WILL OR LIVING TRUST SHOULD CONTAIN INSTRUCTIONS THAT ALL CHARITABLE BEQUESTS SHOULD BE MADE, TO THE EXTENT POSSIBLE, WITH INCOME IN RESPECT OF A DECEDENT.
Your will or living trust should have the following language:
“ I instruct that all of my charitable gifts, bequests and devises shall be made, to the extent possible, from property that constitutes “income in respect of a decedent” as that term is defined under the U.S. income tax laws”
If you do not have this language your estate will not be able to claim an income tax deduction for charitable bequests.
Always consult with your professional advisors when working with your estate plan and deciding how best to make charitable gifts to your parish or Catholic school. There are great opportunities to benefit the work of the Church through a gift from your IRA. It is a great way to give, and to give smart.
5)Real
Estate
-Donating real estate gives you an income tax deduction for the fair market
value of your property.
-If you own your home, you can create a life estate. You live in your home and enjoy full use of it while you are alive. Upon your death your parish or Catholic school owns your home. You get a tax deduction in the year you create the life estate.
-If you own a piece of property which currently provides little to no income for you, create a charitable trust with the real estate as the primary asset. You avoid any capital gains on the real estate when it is eventually sold. You receive a tax deduction in the year you make the gift. You turn a former, low income producing asset into an asset that provides you with sufficient income.
-Donating real estate
removes the asset from your estate saving you possible estate taxes.
The type of planned gift you make depends on your estate plan and your overall
needs. Our office is available to meet with you to determine the best gift
that fits your financial and charitable needs. It is important to always consult
with your attorney and professional advisor before making a decision.
6)Stock
-Stocks provide an immediate gift to your parish or school.
-You receive two tax benefits;
an income tax deduction for the fair market value of the stock; avoidance
of any capital gains tax on the stock's appreciated value.
How to donate your stock;
- If you
have the stock certificate, mail your certificate to our office along with
a letter stating the purpose of your gift and the name of the parish or Catholic
school you want to donate to. Do not endorse the certificate or sign it. In
a separate envelope, mail our office an endorsed stock power along with a
copy of your letter. Do not put any other information on the stock power,
only your signature. Your name should appear exactly as is does on the certificate.
Our office can provide you a form for the stock power.
-If your stock is with a brokerage firm or bank write a letter to your broker or bank stating you wish to make a gift. List the name of the stock and the number of shares. Instruct your broker or bank that you wish to wire transfer the shares to an account specified by our office, and instruct you broker or bank to contact our office. Then send a copy of the letter to our office. Include on that copy the name and telephone number of your broker or bank. We will instruct you broker or bank on how to wire transfer the stock.
-Donating stock removes
it from your estate saving you possible estate taxes.
The type of planned gift you make depends on your estate plan and your overall
needs. Our office is available to meet with you to determine the best gift
that fits your financial and charitable needs. It is important to always consult
with your attorney and professional advisor before making a decision.