Planned giving establishes a way for a donor to provide for family members while remembering the church as well. It often enables the donor to provide more for his or her heirs and to make a larger gift than though possible. It often reduces taxes.
Planned gifts may be designated for any project or fund the donor wishes.
There are several different ways to make a planned gift. Among them are:
- A bequest in a will. This is the easiest and most common way to make a planned gift. A bequest can take the form of a set amount of money, a percentage of the an estate, a specific asset, a trust or the naming of St. Paul’s as a contingent beneficiary.
- Charitable Gift Annuity. The annuity, which must be no less than $5,000, provides you with and guarantees income for life. Some of the income may be tax exempt.
- A Charitable Remainder Trust. This option usually involves fairly large sums of money ($100,000 or more) and is individually managed. It provides income for life, an income tax deduction, relief from capital gains taxes (if funded through appreciated property) and a possible reduction in estate taxes.
- Life Insurance. There are several ways to give l a life insurance policy to St. Paul’s: You can make the church the beneficiary of a new or existing policy, which allows premiums to be tax deductible. You can make St. Paul’s the owner and beneficiary of the policy, making the current value of the policy and future premiums tax deductible. You can also make the parish a contingent beneficiary which means that the parish will receive the policy’s proceeds if the primary beneficiary predeceases the insured.
- Life Estate. You can leave real property – a home, farm, condominium etc. – to the parish. You get a tax deduction when the property is deeded to St. Paul’s and your inheritance and estate taxes may be reduced at the time of your death.
- Appreciated Property. Securities, real estate or tangible personal property may be left to St. Paul’s. You do not pay capital gains if the appreciated property is transferred to the church. Normally, the value of the shares for gift and tax purposes is the fair market value, not the original purchase price.