Many parishioners would like to make a significant gift to St. John's, but feel they are unable to relinquish assets during their lifetimes. Planned giving may be a good way to resolve this dilemma. The following are some planned giving options that will benefit St. John's Church and may provide you additional income and extra tax deductions as well. Be sure to consult your lawyer or estate planning advisor about how each of these options may bet suit your own financial and estate plan.

 

One of the easiest and most popular types of planned gift is a bequest in your Will in favor of St. John's. There are several basic kinds of bequests, which are generally deductible for federal estate tax purposes:

 

If you would like sample bequest language, please let us know.

 

A Charitable Gift Annuity is a wonderful way to make a gift to St. John's, get an income tax deduction, and generate income during your lifetime. A gift annuity is a simple contract between the donor and the Episcopal Church Foundation, which administers these gifts on behalf of St. John's. The ECF will pay the donor a fixed and guaranteed income for life, typically at a rate that is higher than what the donor is already receiving commercially. The donor gets an income tax deduction for a charitable donation when the gift is made, and a portion of the annual income is tax free.

 

If you are interested in other forms of Life Income Gifts, such as Charitable Remainder Unitrusts (so called CRUTS), or Charitable Remainder Annuity Trusts (CRATS), please let us know. These tend to be substantial gifts, and typically involve amounts of $100,000 or more.

 

As you may know, giving these retirement assets can result in significant taxes to you, since they are subject to both estate and income taxes. So, if you think you will have excess value in these plans at your death, consider giving these assets to St. John's. You will avoid paying taxes and receive an estate tax deduction in the process. The paperwork involved in givign them to St. John's is qutie easy. All you need to do is designate St. John's on the Beneficiary Designation form of the retirement plan.

 

Existing policies, paid up policies, or a new policy can be used to make a gift to St. John's. When you designate St. John's as owner of an existing policy, you benefit from an immediate income tax deduction, while a new policy offers deductions for continuing annual premiums. You may also designate St. John's as a beneficiary or successor beneficiary on a single, term, or group life policy, although this option offers less significant tax benefit.

 

Real estate - particularly in the form of a Retained Life Estate - can make a wonderful planned gift. You can gift either your primary residence or a vacation property. Here is how it works. If you give your property to St. John's with a Retained Life Estate, you continue to live or vacation there as if no transfer had taken place. You pay the taxes and continue to maintain the property. But since the property has been gifted to St. John's, you get an income tax deduction based on the present value of the charitable remainder interest, and you pay no capital gains tax since the property was not sold. Because the property was given to a charitable institution, it is not included as part of your taxable estate upon your death but passes to St. John's who can then sell the property and credit the proceeds to the Church's General Fund.