Do you ever wonder what the future holds?
While it’s impossible to know or control what happens in the future, you can have security about achieving your ultimate goals by making a plan.
Planning is one way to create a secure future for you and your loved ones. With a good plan, you can rest easy knowing that your family will be well cared for and your property will pass to your intended beneficiaries.
What are some options for planning my future?
Failure to plan may result in accidental disinheritance which may occur when you have no will or your will doesn’t function properly.
A Will—a will is a written document that permits you to state how you want your property or estate distributed, name an Executor (also called a Personal Representative) to distribute your property, pay debts and taxes, and handle other business affairs to settle your estate.
Living Trust—if you own property, you may wish to set up a living trust. A living trust may be set up during life and directs where your assets go. Unlike a will, a trust will not subject your estate to probate, which is often a lengthy and costly process that requires a court to settle your estate.
What other considerations need to be made?
Who will be the guardian of my dependent children?
Your child is considered a minor in most states until he or she reaches age 18. It is important to appoint a guardian, so that if you pass away, the guardian may take physical custody of and care for your minor children.
Who will have the power to manage my finances?
If you are no longer able to manage your property or later wish to have someone else manage your property, a durable power of attorney will give the person you select the legal authority to buy, sell, and manage your property.
Who will make my healthcare decisions?
A durable power of attorney for healthcare allows you to select a person who can assist your doctors in making healthcare decisions if you become unable to act on your own behalf.
Making a Bequest to Charity
In considering your plans for the future, you may not only be thinking about how to help your family and save on estate taxes, but also how you might benefit a charitable organization—such as Remnant Publications. A bequest permits you to leave a lasting legacy and often provides valuable tax savings.
A charitable bequest is one of the easiest gifts to make. You can create a bequest of any dollar amount, gift specific property or designate a percentage of your estate in your will or trust plan. If you wish to make a gift of your IRA or 401(k) plan, this can usually be done by filling out a beneficiary designation form provided by your plan administrator.
PLANNED GIVING OVERVIEW
The goal of planned giving is to help you plan your estate and charitable giving in a way that benefits you, your family, and charity. There are many ways you can make a planned gift to charity and enjoy tax and income benefits.
The following chart provides you with a quick overview of planned giving options on how to give and what to give:
|HOW TO GIVE||YOUR GOAL||HOW IT WORKS||YOUR BENEFITS|
|Bequest||Maintain control of your assets during life.
Make a gift to charity when you pass away.
|You designate our organization as the beneficiary of your asset by will, trust, or beneficiary designation form.||Estate tax charitable deduction.
Life use and ownership of your property.
|Charitable Gift Annuity (CGA)||Receive fixed income for life.
Avoid capital gains tax on the sale of your appreciated property.
Enjoy the benefit of tax savings from a charitable deduction.
|You transfer your cash or appreciated property to our organization in exchange for our promise to pay you fixed payments (with rates based on your age) for the rest of your life.||Charitable tax deduction.
Fixed income for life.
Partial bypass of capital gain.
Possible tax-free payments.
|Charitable Remainder Annuity Trust (CRAT)||You own cash or property and are looking for a way to make a charitable gift, save on taxes, and receive fixed income for the future.||You transfer your cash or property to fund a charitable remainder annuity trust.
The trust sells your property tax free and provides you with fixed income for life or a term of years.
|Fixed income for life, lives, or term of years.
Avoid capital gains tax on the sale of your appreciated assets.
Charitable income tax deduction for remainder portion of your gift.
|Charitable Remainder Unitrust (CRUT)||You own cash or property and are looking for a way to make a charitable gift, save on taxes this year, and plan for the future.||You transfer your cash or appreciated property to fund a charitable Unitrust.
The trust sells your property tax free and provides you with income for life or a term of years.
|Charitable tax deduction.
Income for life or a term of years.
Possible income growth over time.
Avoidance of capital gains tax.
|Charitable Lead Trust (CLT)||Pass on cash or property to your family or make annual gifts to charity in the future.
Avoid substantial gift or estate tax.
|You fund a trust that makes gifts to us for a number of years.
Your family receives the trust remainder at substantial tax savings.
|Gift or estate tax deduction.
Trust assets plus appreciation pass to family at a reduced cost.
|Life Estate Reserved||Remain in your home for life.
Receive a charitable income tax deduction.
|You give your property to our organization but retain the right to use the property during your life.||Charitable tax deduction.
Lifetime use of property.
|WHAT TO GIVE||YOUR GOAL||YOUR BENEFITS|
|Gifts of Stocks and Bonds||By making a gift of your appreciated securities, you can avoid paying capital gains tax that would otherwise be due if you sold these assets.||Avoid paying capital gains tax.
Receive a charitable income tax deduction.
Enjoy possible increased income.
|Gifts of Real Estate||If you own appreciated real property (home, vacation property, vacant land, farmland or ranch, or commercial property), you can avoid paying capital gains tax by making a gift to us.||Avoid paying capital gains tax.
Receive a charitable income tax deduction.
Leave a lasting legacy.
|Gifts of Retirement Assets||By making a testamentary gift of your retirement assets, such as a gift from your IRA, 401k, 403b, pension, or other tax deferred plan, you will help further our work.||Avoid leaving your family a taxable gift.
Estate tax charitable deduction.
|Gifts of Cash||A gift of cash is a simple and easy way for you to make a gift.
You will receive a charitable income tax deduction that will provide you with savings on this year’s tax return.
|Make an immediate impact on our mission today.
Benefit from a charitable income tax deduction.
|Gifts of Insurance||If your life insurance policy is no longer needed or will no longer benefit your survivors consider making a current or future gift to help further our mission.||Income or estate tax deduction.
Income tax deductions for annual contributions to help us maintain the policy.
UNDERSTANDING PLANNED GIFTS AND THEIR BENEFITS
ESTATE PLANNING -- Made Easy
In a nutshell, estate planning is really what you want done with what you own. The good news is that you can provide for the people and causes important to you by taking simple steps now. Creating your plan for the future can be easy and even enjoyable.
Almost everyone feels better with a plan. It is not too complicated to complete your estate p lan and achieve peace of mind. It is comforting to know when you have organized your life and your plans in a way that provides for and protects your loved ones.
1. ITEMIZE YOUR ASSETS
Take a piece of paper and draw a line down the middle. On the left side, write something you own. On the right side, wrtie the name or names of the person(s) you wish to receive that item or asset.
2. ORGANIZE YOUR ESTATE
Make the process of organizing your estate and plans even easier by downloading our free wills guide. This fill-in-the-blank guide wlaks you through the process of gathering information about what you own, your family, and your goals.
3. WRITE DOWN QUESTIONS
Consider practical questions, such as, "If I give my house to my adult son and my adult daughter, what will they do with it?" If you come up with a question that you can't seem to find a solution for, make a note to ask your attorney.
4. REVIEW YOUR PLANS FOR FAMILY
You can give some assets to family right away and others over time. Ask us how you can provide an income st ream or a lump sum to a loved one and achieve your personal and inheritance goals.
5. CONSIDER CHARITY
Remember to include any charities that are important to you in your plan. If you have given during life, then consider providing for these organizations through your estate. Ask us about plans like charitable remainder trusts and gift annuities that can help your family and our mission.
6. VISIT YOUR ATTORNEY
Take the information you have gathered and questions to your attorney. Your attorney can draft a will or trust that will achieve your goals. You complete the plan through a simple signing process.
7. UPDATE YOUR PLAN
Update your estate plan as your life changes. Marriages, births, and deaths are all events that may make you want to revise your plans.
What is Planned Giving?
A way to leave assets to a charity that provide current and future benefits.
What is a bequest?
The Need—Many people want to give to charity but are unable to donate property during their lifetime. For example, you may have a property that will be needed during life to cover living expenses or rising health care costs. You may benefit from donating property through your estate.
The Solution—You can retain ownership and use your property during your life while also benefiting our organization by leaving the property to us when you pass away.
- A gift to Charity—We receive cash or property.
- Tax Deduction—The amount given to charity is not subject to federal estate tax.
- Flexible—You are able to use and control your property during your lifetime.
The Details—You can leave a gift to charity by including a bequest in your will or trust. Property that passes through a beneficiary designation (such as individual retirement accounts) can be left by designating our organization as a beneficiary.
Specific Asset Bequests—Many bequests transfer a specific item to a beneficiary. “I give my car to Joshua.”
Specific Amount—Another common transfer via a will is the gift of a specific dollar amount. “I give $1,000 to Sarah.”
Bequest of a Percent of the Residue—A fractional amount or percent of what is left of the estate may be transferred to charity. “I give 50% of the residue of my estate to Ann.”
Undivided Percentage of Asset Bequests—You may bequeath or devise an undivided percentage of a particular asset. “I give half of my home to Brian.”
Who needs an estate plan? Everyone!
The Bible gives us some advice on planning and stewardship.
The heart of man plans his way, but the Lord establishes his steps (Proverbs 16:9).
A good man leaves an inheritance to his children's children, but the sinner's wealth is laid up for the righteous (Proverbs 13:22).
If then you have not been faithful in the unrighteous wealth, who will entrust to you the true riches (Luke 16:11)?
The purpose of estate planning is so you have a BIG say in what happens to yourself, your loved ones, and your assets-especially when you cannot. It's simple. If you don't plan, it will be planned for you, either by the courts or people, you don't want or trust. Also, the lack of planning could cause family member disputes.