PLANNED GIVING GUIDE FOR YOU AND YOUR FAMILY

Transcription

1 PLANNED GIVING GUIDE FOR YOU AND YOUR FAMILY UNITED CHURCH FUNDS

2 GOOD STEWARDS As people of faith, we are called to e good stewards of the assets with which we have een entrusted. Good stewardship calls for financial planning and estate planning to ensure the financial security of our families and loved ones. We must also consider how we will provide for the church or ministry that we love and serve to secure its foundation and vitality for future generations. One way you can achieve these goals is through a Planned Gift. WHAT IS A PLANNED GIFT? Planned gifts are planned for during the donor s lifetime ut not realized y the eneficiary until the donor s death. A planned gift is an expression of you and your family s values and commitment to Christian stewardship. It is a way of saying that after your family and loved ones, these are the causes that matter to you most, and providing for them is important to you. There are many other ways to plan a gift. There are gifts that pay you income in retirement, and gifts that help reduce or avoid income and estate taxes. How you make your gift is important, ut more important is the fact that your planned gift meets your personal, financial and charitale goals. Planned gifts are a wonderful way to create a meaningful legacy for you and your family. A planned gift does not require great wealth. It is a win for you and a win for the church or ministry.

3 STRUCTURE YOUR PLANNED GIFT There are several ways to structure your planned gift depending on your ojectives. Some options include: A equest in your Will (No minimum) A Charitale Gift Annuity (gift of $2,500+) Participating in the United Church Funds (UCF) Pooled Income Fund (gift of $2,000+) Structuring a Charitale Remainder Trust (gift of $50,000+) Outright gifts of life insurance, an IRA, real estate or appreciated assets (No minimum) The most important aspects in structuring a Planned Gift is the opportunity to identify the cause and mission that matters most to you and the appropriate accumulated asset to use to fund your gift. United Church Funds can help you determine which gift est meets your personal, spiritual and financial ojectives. IRA GIFTS The Charitale IRA Rollover provision allows you to reduce your taxale income, achieve a charitale giving goal(s) and satisfy your required minimum distriution all in one transaction. If you are over age 59½, you can instruct your IRA provider to direct up to $100,000 from your IRA as a charitale gift. APPRECIATED SECURITIES By donating appreciated securities - stocks, onds or shares of a mutual fund - instead of cash, you will receive a charitale deduction(s) at full, fair market value while reducing the impact of capital gains. You can leverage the impact of your donation to a greater degree than with cash - and receive a tax enefit - when you uy low and give high. You make a gift that costs you less than the enefit it delivers. A gift of appreciated securities is one of the smartest ways for you to support your church or UCC ministry(ies).

4 CHARITABLE GIFT ANNUITY Did you know you can make a gift to your church or ministry that returns income to you? While a Charitale Gift Annuity can pay generous income to the donor, it can also provide an incredile enefit to your church or ministry. You will receive income for life, a charitale tax deduction in the year of the gift and may also receive tax-free income for years to come. IF YOUR AGE IS CGA AMOUNT RATE* YOUR ANNUAL PAYMRNT PAYMENT WILL BE TAX DEDUCTION 65 $10, % $470 $3, $10, % $510 $3, $10, % $580 $4,348 * THE RATES ARE FOR ILLUSTRATION PURPOSES ONLY. THEY REPRESENT MAXIMUMS AND MAY CHANGE DEPENDING ON THE RECOMMEN- DATION OF THE AMERICAN COUNCIL ON GIFT ANNUITIES, WHICH PERIODICALLY REVIEWS AND ESTABLISHES STANDARDS AND RATES. ** CHARITABLE DEDUCTIONS ARE SUBJECT TO MONTHLY CHANGE (BASED ON THE MONTHLY IRS DISCOUNT RATE APPLICABLE TO THE SPECIFIC GIFT DATE). GIFTS FROM WILLS AND TRUSTS When making a charitale gift to a nonprofit organization, it is vital to list the legal name of the charity, city, state and other identifying details. To name your church or ministry in your will or trust, we suggest you use the following language: I give and devise to [name a church or other UCC organization(s)], located in (City), (State), all (or state a percentage) of the rest, residue, and remainder of my estate, oth real and personal, to e used for its general charitale purposes (or for the support of a specific charitale fund or charitale program).

5 BENEFICIARY GIFTS One of the largest assets in your estate may e your retirement plan, i.e. 401(k) or IRA, or any other plan with a eneficiary designation such as Life Insurance or some Brokerage Accounts. You may choose to name your church or ministry as the eneficiary of your retirement plan, then use other assets not suject to income tax to make gifts to your heirs. Contact your retirement plan provider for a change of eneficiary form. Once you have filled out the form, please send a copy to: UNITED CHURCH FUNDS, 475 RIVERSIDE DRIVE, SUITE 1020 NEW YORK, NY POOLED INCOME FUND A Pooled Income Fund accepts gifts from multiple donors, provides for pooled management and investment, and distriutes earnings ased upon a donor s share of the fund. You are entitled to a charitale contriution deduction in the year you make the gift if you itemize your tax return. If you transfer appreciated securities to fund your gift, you may also have significant capital gains tax savings. CHARITABLE REMAINDER TRUST When a donor selects this form of planned gift, they transfer cash, securities or other property into an irrevocale trust and receive lifetime income. A Unitrust pays flexile income, ased on a percentage (usually 5%) of the trust s fair market value as determined annually. An Annuity Trust pays fixed income, ased on a percentage (usually 5%) of the original gift amount. You are entitled to a charitale tax deduction if you itemize and can also realize a capital gains tax savings if you fund your gift with appreciated securities. There are many ways that a Planned Gift can e structured to enefit your church or ministry. You should contact your attorney or financial advisor to determine which gift structure is est for you.

6 WAYS TO GIVE IF YOUR IF YOUR IF YOUR GOAL IS: GOAL IS: To provide generous support to UCC and avoid or reduce capital gains taxes To make use of an underutilized asset to provide sustantial support to UCC church/ ministry To support UCC without affecting your present cash flow or investment portfolio To ta o p YOUR BEST OPTION IS: Appreciated stock, onds, or mutual funds that have een held longer than one year Life insurance policy you no longer need Bequest in will or living trust R th c a se le to HOW IT WORKS: Make an outright contriution of appreciated securities or use securities to fund a planned gift Donate a paid-up policy you no longer need Name UCC church/ ministry in your will or living trust y designating a specific amount or a share of the residue N m IR re a YOUR BENEFITS WILL BE: Buy low and give high the will receive the appreciated asset while you avoid capital gains taxes Increase your aility to support UCC without affecting your lifestyle Retain control of your assets during your lifetime and your estate will receive an estate tax deduction E a ta re a u to UNITED CHURCH FUNDS 475 RIVERSIDE DRIVE, SUITE 1020, NEW YO

7 C g sh ent To avoid doule taxation on IRA s or other retirement plans To receive guaranteed lifetime income, reduce capital gains taxes and supplement retirement income To reduce high tax liaility now, and secure additional retirement income To diversify portfolio, gain income for life or a term of years, minimize capital gains taxes on transfer of stock or real estate or Retirement planning that names UCC as a full, partial, or secondary eneficiary, and leaves other assets to family Charitale Gift Annuity Deferred Payment Charitale Gift Annuity Charitale Remainder Trust urch/ will y t e Name UCC church/ ministry as a eneficiary of your IRA or other retirement plan asset Simple gift contract that provides lifetime payments to one or two persons Simple gift contract that provides lifetime payments to one or two persons commencing at a future date Trust that pays a fixed or variale amount for life or a term of years to the donor and/or others of ring d te Eliminate income and estate taxes to e paid y non-charitale eneficiaries on retirement plan assets and freeing up other property to pass to your eneficiaries Receive an income tax deduction and fixed payments for life (with payments that may e partially tax-free) Otain a larger deduction to e used now and higher payout rate compared to other life income gifts (with payments that may e partially tax-free) Receive current income tax deduction, avoid immediate capital gains taxes, diversify highly appreciated assets to produce income EW YORK, NY PLANNEDGIVING@UCFUNDS.ORG

8 FOR MORE INFORMATION ABOUT MAKING A GIFT PLEASE CONTACT: PLEASE CALL OUR OFFICE SO WE CAN ASSIST YOU. IF YOU HAVE ALREADY INCLUDED YOUR CHURCH OR MINISTRY IN YOUR PLANS, IT IS IMPORTANT TO LET US KNOW SO WE CAN THANK YOU. MILLY HERNANDEZ Phone: plannedgiving@ucfunds.org 475 RIVERSIDE DRIVE, SUITE 1020 NEW YORK, NY THE INFORMATION IN THIS BROCHURE IS NOT INTENDED AS LEGAL OR FINANCIAL ADVICE. COPYRIGHT 2017 PGMARKETING.COM AND UNITED CHURCH FUNDS UNITED CHURCH FUNDS