A retirement plan is one of the best types of assets to transfer to the Christ Church Legacy Foundation following death because of the income tax consequence. Most inherited assets are free from income tax. However, an heir will pay income tax on disbursements from a decedent’s retirement plan such as a profit sharing plan, Section 401(k) plan or IRA. If you are going to make a charitable bequest, it is usually better to transfer assets subject to income tax to a tax-exempt charity – such as the Christ Church Legacy Foundation – and to transfer assets not subject to income tax to heirs.

For a taxable estate, the combination of estate and income taxes will frequently exceed 75 percent of the total amount – even more if the generation skipping transfer taxes are triggered. At a cost to your heirs of only 25 percent of the fair market value of these types of assets, you could apply 100 percent of the assets to the Christ Church Legacy Foundation to accomplish your specific charitable objectives. Estate taxes change, so be sure to consult an accountant.

Of course, married couples can postpone the decision by transferring the assets to the surviving spouse and claiming the marital estate tax deduction. However, since that deduction is not available to unmarried individuals and the second-to-die of married couples, a charitable bequest of pension plan assets might be the best option. 

A gift of stock is one of the easiest methods to make a gift. If the stock has appreciated, the donor not only avoids the capital gains tax on the appreciation but also receives a charitable deduction for the full fair market value of the stock at the time of contribution. 

You may have purchased life insurance when you needed protection for your family, business or estate. In later years, you have found you no longer need that insurance. If you want to achieve immediate tax benefits, you should consider irrevocably assigning an insurance policy to the Christ Church Legacy Foundation.

Giving life insurance as a gift to charity allows even those with modest means to leave a substantial contribution to the cause most meaningful to them. A gift of life insurance is a deferred gift, which means the proceeds from a commitment made now will be realized in the future. Donors often struggle between their desires to achieve philanthropic goals and their need to preserve their estates for their families. A gift of life insurance can eliminate this conflict.

In addition to gifting an existing life insurance policy, a new life insurance policy can be purchased from your life insurance professional naming the Christ Church Legacy Foundation as owner and beneficiary. The initial premium payment plus subsequent insurance premium payments made by the donors are deductible as charitable contributions. A gift of insurance will not reduce your current stream of income. 

Perhaps a charitable gift sounds attractive but you are not ready to give up ownership of your life insurance. By naming the Christ Church Legacy Foundation as beneficiary only, you retain ownership of the policy; have access to the cash value and the right to change the beneficiary. If you would prefer that a member of your family remain the primary beneficiary, you can make the Christ Church Legacy Foundation the contingent or successor beneficiary to receive the proceeds if your primary beneficiary dies before you.

Because you retain ownership of the policy, there is no charitable deduction for the value of the policy upon designation of the Christ Church Legacy Foundation as beneficiary or for subsequent premium payments. However, any proceeds payable to the Christ Church Legacy Foundation at your death will not be subject to federal estate tax. 

If you own property and wish to make a charitable gift to ministry, you may find giving real estate to be a wise way to accomplish your goal. Someone who donates real estate that has been held for more than one year is generally entitled to an income tax deduction equal to the full fair market value of the contributed property. Also, the donor can avoid the capital gains tax on the appreciated portion of the property that would have been taxable if the property were sold. Saving future potential estate taxes and probate costs associated with the property are other possible benefits. Not to mention, giving real estate is often an effective way to make a substantial gift to the Kingdom without dramatically impacting your current cash flow!

Leaving your real estate to charity after your death can be a significant eternal investment in the lives of future generations through the ministries you choose to support. In concept, this can be accomplished simply by including a distribution instruction in your will (or revocable living trust) directing your executor (or trustee) to distribute the property to the church. You should, however, contact the church office prior to meeting with your lawyer to review the policies concerning accepting gifts of real estate.

Including a charitable bequest as a part of your will is a great way for you to provide long-term support for the Christ Church Legacy Foundation while also effectively managing your estate. Making a charitable bequest is easy. If you want to leave a bequest to the Christ Church Legacy Foundation, you must specifically do so in a will or trust. Your will or personal trusts are legal records of your wishes regarding how your assets should be handled at your death. Instructions regarding the dispensation of your assets are called bequests.

Charitable Bequests are not subject to estate or inheritance taxes, therefore reducing the tax burden of an estate. Charitable bequests also provide flexibility because they may be changed at any time. Your estate will be entitled to a charitable deduction for the full, fair market value of your gift. The Christ Church Legacy Foundation can assist you and your attorney with standard legal language necessary to establish your charitable bequest.

• General Bequest: With this type of bequest, you simply leave a specified dollar amount (e.g., $25,000) to the Christ Church Legacy Foundation.
• Specific Bequest: A bequest of this type involves the designation of specific property (e.g., a home, a farm, or shares of stock) that you want the Christ Church Legacy Foundation to receive.
• Residuary Bequest: Through a residuary bequest, the Christ Church Legacy Foundation will receive the remainder of your estate after all liabilities and other bequests have been paid. It may augment a general or specific bequest to the Christ Church Legacy Foundation if the size of the estate allows, or may ensure that other beneficiaries receive their bequests prior to distribution to the Christ Church Legacy Foundation.
• Percentage Bequest: You may direct that the Christ Church Legacy Foundation receive a percentage of your estate or residuary estate. In this case, if the size of your estate changes, the bequest will change proportionately.
• Contingent Bequest: It is important to anticipate a situation in which a beneficiary might die before you or choose to disclaim the property. To prepare for such an occurrence, consider naming the Christ Church Legacy Foundation as the contingent beneficiary. 

There are several ways to memorialize those dear to you. Gifts may be made to the Christ Church Legacy Foundation in memory of deceased persons, to honor living persons, or to commemorate anniversaries or other special events.

It may be appropriate to remember a loved one by requesting that “in lieu of flowers, the family suggests that contributions be made to the Christ Church Legacy Foundation.”

If you desire to contribute to Christ Church Legacy Foundation anytime during life, please contact Alan Prass to discuss your charitable intent. Donors who give during life get to see the benefits of their gifts and realize the tax benefits of giving. 

If you desire to contribute to Christ Church Legacy Foundation anytime during life, please contact Alan Prass to discuss your charitable intent. Donors who give during life get to see the benefits of their gifts and realize the tax benefits of giving. 

A charitable remainder trust is an efficient estate planning vehicle. It is a special type of trust that provides for and maintains two sets of beneficiaries. The first set are the income beneficiaries (you and, if married, a spouse). Income beneficiaries receive a set percentage of income for your lifetime or for a fixed term not to exceed 20 years from the trust. The second beneficiary would be the Christ Church Legacy Foundation. The Christ Church Legacy Foundation would receive the principal of the trust after the income beneficiaries pass away.

There are two basic types of charitable remainder trusts; one is an annuity, one is a unitrust.

Establishing either trust is simple:

• Cash or property is transferred to the trust.
• The income beneficiaries receive annually an amount equal to a fixed percentage of the trust’s fair market value (unitrust) or a fixed dollar amount (annuity trust).
• Upon termination of the trust, the assets are transferred to the Christ Church Legacy Foundation.
• The eventual distribution to the Christ Church Legacy Foundation will take effect only at the death of the trust’s income beneficiaries (or at the end of the term of the trust if a fixed term is chosen for the trust). 

A charitable gift annuity is a way for you to receive a guaranteed income for life and an immediate income tax deduction, while at the same time leaving a legacy to the Christ Church Legacy Foundation.

When you transfer assets to a Charitable Gift Annuity, you receive a fixed stream of income for life. After paying the lifetime annuity to you – and your spouse, if you choose – the remaining principal is transferred to the Christ Church Legacy Foundation.

Payments to you are based on your age – the older you are, the higher the rate. If the annuity is for you and your spouse, the calculation is based on your joint ages. You can choose to receive payments quarterly, semi-annually or annually. If you do not need the income now, you can use a deferred plan, receive the income tax deduction now, but begin receiving payments when you reach a specific age. This is an excellent complement to your existing retirement plan.

Once you have committed to making a gift, you need to specify if it is for current needs of the church at the time of the gift, or future needs thru the Christ Church Legacy Foundation.

When naming the church a benificiary please refer to th church as “Christ United Methodist Church of Fairview Heights”.

A gift for current use at the time of the gift should be designated: “Christ Church General Budget”

A gift for future needs should be designated: “Christ Church Legacy Foundation”