Paying It Forward – Part Four
by David Mickley
Think of us in this way, as servants of Christ and stewards of God’s mysteries. Moreover, it is required of stewards that they should be found trustworthy. 1 Corinthians 4
What have we learned in our series?
- A gift to our churches ELCA ENDOWMENT FUND POOLED TRUST may be one of your best ways to “Pay It Forward”
- We have many choices when it comes to methods of planned giving.
- We should be prayerful in our decisions.
- We should seek assistance from legal and financial professionals to make sure that all of the angles are covered.
In this last installment we suggest remembering our church with a bequest through life insurance.
Life insurance that is not needed by family members can be designated for our Building & Repair Fund and other charities. It is easy to change your beneficiary by obtaining a change of beneficiary form and designating “LUTHERAN CHURCH OF THE GOOD SHEPHERD, SEMINOLE, FL” as your primary beneficiary.
If you are carrying an active life insurance policy that you no longer need, consider donating it outright to the church. You will receive current tax benefits, and the church can put the proceeds from the policy to work right away or you can continue tax-deductible premium payments via annual gifts to the church if you prefer.
Bequest Through Retirement Funds
Retirement assets are easily designated to the church via a change of beneficiary form obtained from your plans trustee. You can name the church to receive 100 percent or a portion of your retirement account upon your death.
Taxation
Retirement assets have never had taxes paid on them, so they are subject to income taxes when you withdraw them. If you die before withdrawing them, your heirs must pay the income taxes on the assets at their own respective tax rates. If you have a taxable estate, the assets will also be subject to inheritance taxes. However, assets left to a charity receive tax favored treatment.
Bequest Through a Trust
Please consider one of the following different forms of trusts.
- Charitable remainder trust – An irrevocable trust that allows you to donate assets to charity while receiving income for life or a set period, with the remaining assets going to your chosen charity(ies) after that period.
- Charitable lead trust – an irrevocable trust that provides income to a charity for a set period, with the remaining assets then going to designated beneficiaries, often family members.
- Revocable Living trust – A revocable living trust is a legal document allowing you to manage and control your assets during your lifetime, while also providing a plan for their distribution after your death or incapacity, and it can be changed or terminated at any time.
Your attorney or financial advisor can discuss if any of these instruments may work for your individual situation. Additionally, feel free to speak to a member of our finance committee if you need assistance. They are: Pastor Keith, David Mickley, Brett Sengbusch, Gus Dueben, Marilou Nemeth & David Supplee.
Your legacy gift will ensure the continuation of God’s work for years and years to come.