We all want to leave a lasting and significant impression on those people that are most dear to us. Planning for the future and considering the legacy you will leave is one of the most effective ways to ensure a lasting impact on the world in which you live.
For many people considering their legacy, ensuring that their loved ones will be sufficiently cared for in the future is of paramount importance. Making a charitable bequest is one of the easiest ways to guarantee that your legacy endures.
What Is a Charitable Bequest?
A charitable bequest is a written statement in your will or trust directing a gift be made to a qualified exempt charity as part of the disposition of your estate. A charitable bequest is one of the most flexible estate planning tools because it can be changed at any time. This ability to remain in complete control of your property during life makes a charitable bequest one of the most popular methods of giving.
What Type of Bequest Should You Consider?
Though making a charitable bequest is a flexible and easy way to ensure the impact of your legacy, there are some important things to consider before incorporating a charitable bequest into your estate plan. The property passing by bequest through your will is subject to probate. Also, the amount of your bequest and the type of your bequest will depend on the value of your estate and the specific assets in your estate.
There are several types of charitable bequests. Depending on your needs and objectives, one type may be better suited for your estate plan than another.
- Gift of a percentage of your estate
- Gift of a specific asset
- Gift of the residue of your estate (the assets that remain in your estate after other bequests, tax and administrative costs have been satisfied)
The Legacy You Leave
Our Kansas District Planned Giving Office, 785-357-4441, ext.101, can help you determine the type of charitable bequest that suits your objectives. They will provide you with confidential information that will ensure you receive the maximum tax benefits as you shape your legacy for future generations. What kind of legacy will you leave?
Recently I discovered another time your will needs to be rewritten. Your will becomes null and void if you get a divorce. The law says anything left to your spouse except life insurance and retirement accounts become null and void upon a divorce.
On the other side of the coin is if you get married and have at least one child, your will you had prior to the marriage becomes null and void. When these types of events occur, rewriting your will is probably the last thing on your mind.
If you have had a change in your life similar to the ones above, please call my office for a no-cost review. You may call me at 1-800-357-4421, Ext.101.
Will all your hard-earned money go directly to the heirs you want, or will it simply become part of your estate? With some simple planning we can protect our assets from taxes and probate.
If you are still fortunate enough to have a defined-benefit pension or a 401K with an employer or former employer, you probably have a beneficiary designation form in their files. Are the beneficiaries named up-to-date? Are they still the same people you wish to have the money if you are no longer alive to receive it? On each beneficiary designation form, you should list a primary beneficiary and one or more contingent beneficiaries. Changes in your life could warrant a change in your original beneficiary designations. These persons named should be reviewed each year or anytime you have a significant change in your life.
Beneficiary designations should also be named on your IRAs, and annuities. You will also want to make sure these designations are always up-to-date. Making your estate a beneficiary can cause significant tax consequences for your heirs.
If you die before receiving Social Security benefits, no one will receive the money you contributed all those years. However, your spouse may be eligible for the benefits based on your employment record. Please check this with your local Social Security Office or go online for more information at www.ssa.gov .
All bank accounts, CD's and mutual funds can be transferred by the use of Payable on Death contracts. Real estate and personal property can be transferred by the use of a Transfer on Death deed.
Please call or write our office for more information on this subject. We can be reached at the Kansas District – LCMS Office, 1000 SW 10 th , Topeka , KS 66604 or by phone at 785-357-4441, Ext. 101.
Many often lament the fact that as we age, our child-like characteristics seem to fade. Thankfully, however, the philanthropic spirit that seems to reside somewhere in the heart of everyone does not dissipate with age.
Americans continually set new records for charitable support. Our neighborhoods and cities thrive in part because of a pervading generosity. Indeed, the work of your church and many other Lutheran Church – Missouri Synod charities depend on private individual expressions of support that come our way in countless forms.
Each year hundreds respond. For many, the response includes a generous gift of time and energy through volunteerism. Of course, many find material ways to express their support through gifts to our annual fund efforts and capital campaigns, as well as other specific opportunities to offer financial partnership in these efforts.
In fact there are many ways that you can make a gift. The most common is by simply writing a check or giving cash. Many of these same individuals and families plan today for a gift that comes in the form of a bequest articulated in the last will and testament.
But there are a number of other ways that you can provide support to the Lord's work. Often the way that a gift is made can have dramatic impact on helping to meet the long and short-term objectives of a donor.
Almost every gift to a qualified charitable organization comes with certain tax benefits, thanks to our government's ongoing encouragement of the private support of charities. However, in many situations it is possible to receive more than just a charitable income tax deduction. Indeed, certain ways of giving make it possible to bypass capital gains taxes on appreciated assets, significantly reduce estate taxes, and even establish a whole new source of income for yourself and your family.
The Kansas District Planned Giving Counselor has been trained to help match your gift with your objectives. You will be provided with confidential information that will ensure your gift – whether cash, insurance, stock, property or a gift in trust – is timed to meet your objectives and deliver maximum value.
Please call Garry Niehoff at the Kansas District, 785-357-4441, ext. 101 if you would like more information.
The Planned Giving Office is here to serve the Kansas LCMS Churches and its members. We serve congregations by:
- Offering Wills Awareness Seminars
- Offering assistance with their Endowment Funds
--Suggesting guidelines for setting up a congregational Endowment Fund
--Helping endowment fund committees publicize their funds
--Guidance in the design of an endowment fund brochure
-- Providing ideas for funding the endowment fund with various planned giving tools - Financial Planning Seminars
We serve individual members by:
- The use of a Christian Preamble to witness their faith in Jesus Christ
- Finding options to help them remember the Lord's work
--Charitable Remainder Unitrusts
--Gift Annuities - Helping them to save the family farm or business from shrinkage due to taxes
- Preserving the estate assets for the next generation by minimizing taxes and avoiding probate
- Helping them to properly distribute items of sentimental value
- Providing information on Trusts, Durable Powers of Attorney, and Living Wills
- Reviewing their present documents at their request
The Planned Giving Office is here to serve you and your congregations on a confidential, no-cost basis. To arrange any of the above services for your congregation or any of your individual members, call Garry Niehoff at the Kansas District Office at 1-800-357-4421, Ext. 101 or 785-357-4441, Ext. 101.