You will typically hear about giving to charity through your will or trust, but there are many easy ways to remember First Church in your planned giving that do not require changes to your will or trust. Making First Church in Sterling a designated beneficiary of your life insurance policies, 401(k) or IRA, accounts is a simple, quick, and inexpensive way to achieve your charitable goals.
Thank you for considering a planned gift to First Church in Sterling to help ensure its future ministry. Here are some ways you can give:
YOUR WILL
Including a charitable bequest as a part of your will is a great way for you to provide long-term support for First Church in Sterling while also effectively managing your estate. Making a charitable bequest is easy. If you want to leave a bequest to First Church, 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.
Sample wording to bring to your attorney or estate planner:
I give to the First Church in Sterling a nonprofit 501(c)(3) corporation, located in Sterling, Massachusetts., [_____ percent of my estate or the sum of $________ ] for its general purposes.
GIFTS OF LIFE INSURANCE
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 First Church in Sterling.
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 First Church as owner and beneficiary. The initial premium payment plus subsequent insurance premium payments made by the donors are deductible as charitable contributions.
RETIREMENT PLAN ASSETS
A retirement plan is one of the best types of assets to transfer to First Church 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 First Church in Sterling – and to transfer assets not subject to income tax to heirs.
LIFE INCOME GIFT PLANS
The Unitarian Universalist Association of Boston, of which First Church is member will manage these plans through their Office of Legacy Gifts. Complete information about Life Income Gift Plans, can be found here.