Leaving a Legacy
There are many ways you can leave a legacy to sustain the mission of St. Joseph Parish, while at the same time providing yourself and your family with significant tax benefits. In addition to outright, tax-deductible cash gifts, there are other creative ways to give, including gifts of appreciated assets.
Gift of Stock
Appreciated stock represents the most common type of non-cash gift to St. Joseph Parish. You can include 100% of the market value of the most such assets as charitable contributions for tax purposes if held more than one year. The transfer of property does not generate a capital gain tax. The parish, as a tax exempt entity, will realize the full market value, less transaction costs, at the time of sale without paying capital gains tax. If you sell the stock first then give cash you may be subject to capital gains taxes thereby reducing the after tax proceeds. Please contact us before the sale of stock.
Gift of Tangible Personal Property
There are many tax benefits for gifting real estate. Gifts of jewelry, art work or other appreciated assets may receive tax benefit but it may be equal to the cost of the asset as the time of purchase. Please contact your estate planning attorney/accountant/tax advisor and the parish if you are considering this type of gift.
Bequests are the most popular planned giving method used by parishioners. Bequests are popular because they are easy to understand and do not require you to part with assets during life. This provides you the peace of mind knowing that assets are available to satisfy unforeseen expenses such as medical or nursing home costs. Sample language you might want to you in your will:
“I give to St. Joseph Catholic Church, a religious institution in Traverse City, Michigan in the Diocese of Gaylord, operated by the Roman Catholic Church in the United States, (insert here the sum, description of property, or percentage of residual estate). This gift is to be to be used to support the parish’s activities and programs.”
Retirement Plans and IRAs
A second type of expectancy gaining in popularity among parishioners involves naming the parish as the beneficiary of a retirement plan or IRA. For many parishioners, retirement plan assets represent the single largest asset in your portfolios. Like the bequest, it is easy to understand and easy to implement. This gifting opportunity merely involves obtaining a beneficiary designation form from the retirement plan administrator and naming the parish as the partial, or entire, beneficiary of the retirement plan assets upon death.
A third type of expectancy, life insurance, may be attractive because it affords you the opportunity to make a gift at a sizeable face value for a minimal outlay of cash. You may give an existing policy, either fully paid or partially paid, or a new policy. Similar to a retirement plan designation, the proposed gift to the parish is accomplished by naming St. Joseph Parish as a beneficiary of the policy on the beneficiary designation form. Upon death, the parish will receive a portion of, or all, the proceeds from the policy. You are entitled to a charitable income tax deduction equal to the cash surrender value of the property and any future premiums paid only if the parish is named as the owner and beneficiary of the policy.
Before you proceed with any of the above, it is advisable for you to meet with your accountant/tax advisor. Any discussion of tax treatment is not intended and should not be considered as tax advice. Please contact David Sanger, Business Manager, for more information.