Estate Planning and Giving
Learning and Planning
Within our Life Center ministry, we believe that stewardship extends beyond our lifetime. One of the most meaningful ways to care for your loved ones and the values that matter most is through thoughtful estate planning and a potential planned gift.
Unfortunately, many families never take this important step. Studies estimate that nearly two-thirds of American adults do not have a will in place, leaving important decisions about their family, assets, and legacy unresolved.
Part of our efforts in donor relations is to work alongside of families as they embark on creating their estate plan, updating their estate plan, and helping them consider a gift to the ministry of their choice. This can be a gift to Life Center, to Life Christian Academy, or to a designated endowment within our Life Christian Foundation. We also provide references to a team of advisors, including tax implications and benefits, financial planning advice, and legal expertise.
Considerations in Estate Planning
A thorough estate planning checklist ensures your assets, healthcare wishes, and loved ones are protected, covering wills, trusts, powers of attorney, and beneficiary designations.
Advisor Recommendations
Financial Planning
Composition Wealth
Tyler Hjelseth
thjelseth@composition.com
253.906.4013
Tax Advisor
Johnson, Stone and Pagano
Team of Advisors
Jspcpa.com
253.566.7070
Legal Counsel
Morton McGoldrick PLLC
Robert Critchfield
Bvmm.com
253.627.8131
WHAT IS A PLANNED GIFT?
The key word is “planned” in that your key decisions will shape the plan that you wish for your estate. Being a good steward is a part of God’s teaching to His people. The process of creating a planned gift will provide these opportunities:
1. Realize your financial goals and develop a family plan
2. Potentially reduce taxes for you and your family
3. Arrange for a gift to the ministry of your choice
4. Establish a legacy
ABOUT BEQUESTS
A bequest is a financial term describing the act of giving assets such as stocks, bonds, jewelry, real estate or cash to individuals or to organizations through a will or estate plan. Bequests may be made to friends, family members, institutions, or charities. A bequest is generally a revocable gift, which means it may be changed or modified at any time. A bequest may be for a general or specific purpose. Bequests are exempt from federal estate taxes and if you have a taxable estate, the estate tax charitable deduction may offset or eliminate estate taxes, which may result in larger inheritance for your family members.
CHARITABLE BEQUESTS
A bequest is an effective means by which to make a gift to a charitable organization. As a part of an estate plan, the gift will be designated to a charity for the purpose for which you intend. Your attorney will include the proper verbiage to assure that the gift is designated to the receiving organization as well as include any specific desires for the gift.
A charitable bequest may be for a specific dollar amount, a percentage of the estate value, or a defined item or property of value.
WHAT TO GIVE
GIFTS OF STOCK AND BONDS
Your decision to donate appreciated stocks and bonds is an effective way to reduce taxes on appreciated values. In addition, you will receive and income tax deduction for the value of the donation.
GIFTS OF REAL ESTATE
Real estate includes a home, vacation home, land, or commercial property. A planned gift of real estate may help avoid capital gains tax on the sale of the property and gives an income tax deduction based on the appraised value of the gift. Part of the legal process will include you signing a deed executing the transfer of ownership to the charitable organization.
GIFTS OF RETIREMENT ASSETS
Most people will not use all the proceeds of their IRAs, 401K, 403b, or other retirement funds that have been tax deferred when the assets were accumulated. Your planned gift may include gifts of your unused retirement fund and this will help avoid the potential of estate tax on retirement funds. Your family members would also avoid income tax on the retirement assets which were created on a pre-tax basis. A professional tax advisor will give best advice with these decisions.
GIFTS OF CASH
A planned gift involving the transfer of cash to a charitable organization is very simple and becomes a gift that the organization may use upon receiving the gift. The cash gift also allows you to receive a charitable income tax deduction for the gift.
GIFTS OF INSURANCE
In the case of life insurance, you may consider a gift of the policy to benefit an organization that will benefit from the policy provisions. The policy may be one that can be assigned to a new purpose from the original intent. Hereto, you will receive a charitable income tax deduction for the value of the gift. The policy may be cashed in by the organization or it may be held to maturity and will provide benefit at that point. A gift of insurance includes a designation for beneficiary form from the insurance company.
MAKING A GIFT
Your decision to go through the estate planning process and include a gift to Life Center, Life Christian Academy, or the Life Christian Foundation for endowment, includes a team approach. We will do our best to support your efforts with an excellent “advisors” group. This group includes:
Financial planner, Tax advisor, Legal counsel/attorney
A decision to make a planned gift will include creating a fund agreement, which stipulates exactly your wishes for the gift and for the impact that you desire for our organization.
LIFE CENTERED LEGACY
Your planned gift of $10,000 or more will make you a member of our Life-Centered Legacy. With membership you may be recognized on our website and in newsletters about planned giving opportunities. This recognition helps us create additional gifts like yours to benefit Life Center, Life Christian Academy, or Life Christian Foundation.
CONTACT
For additional information or questions regarding a planned gift opportunity, please contact Ross Hjelseth.