Paying It Forward – Part Two

by David Mickley

The silver is mine, and the gold is mine, saith the LORD of hosts. Haggai 2:8

Last month we discussed the importance of our endowment fund and our needs to consider passing assets to the fund via wills or bequests. This area of estate planning is known as planned giving. A secular definition might be “A set of ways a donor can leave money/assets to a nonprofit at his/her death; or a way to invest money so that the donor receives benefits during his/her life and then bequeaths the remaining funds to the nonprofit.” Let’s explore these methods further.

There are four types of bequests/gifts:

1. A percentage of the estate. Distribution of assets can be arranged on a percentage basis. The bequests then remain in the same proportion to each other, despite fluctuations in the value of the estate. You could choose to tithe from your estate to the fund.

2. A fixed amount of money or a designated property. You name the fund to receive a specified amount of money, a collection, a home or parcel of land from your estate, or other assets from the estate.

3. A double-purpose bequest. A life income to a relative (such as a spouse) or other loved one can be assured while leaving a gift to the fund. This is accomplished by establishing a charitable remainder trust, a gift annuity, or other life-income gift in the will.

4. A residual bequest. Whatever property remains in one’s estate after specific bequests have been fulfilled is known as the residue. Any parishioner can leave the residue of his/her estate to the trust. This includes those who name the trust for a specific amount of money or a designated property. They too can leave all or parts of the residue of their estate after all other bequests have been satisfied.

More information will follow next month…