|
Planned Giving: “In life and death, we belong to God”
Surprisingly, many people who have made the church a central part of their lives, whose longtime stewardship has been an important expression of their faith, fail to remember the church in their estate planning. Most do not omit the church intentionally; they simply are unaware of the options available to them. And when the question is raised, most people say, “I just never thought about that before.”
But as the “Brief Statement of Faith” (1983) of the Presbyterian Church (U.S.A.) affirms in its opening sentence: “In life and death, we belong to God.” The PHPC Foundation was established in 1991 for the purpose of enabling members and friends of this congregation to extend – both during and beyond their lifetimes, in life and in death – the reach of their faith into the future and the world. Foundation assets are overseen by the Foundation Board and managed by investment advisors through the Texas Presbyterian Foundation.
Because the PHPC Foundation is classified as a tax-exempt public charity, all gifts are tax deductible. Tax-deductible contributions can be made in a variety of ways. Choosing the right plan for giving depends on your assets, needs, intentions and age. Each gift – large or small – is valued. Each gift is your legacy to future generations.
Making Outright Gifts during Your Lifetime
Outright gifts usually offer the largest immediate income tax deduction. Gifts may be made as a memorial or a tribute to an individual to honor a birthday, anniversary, or some other special event. They may be made to endow a special cause or ongoing program that is particularly close to your heart. Such outright gifts may be cash, appreciated property, tangible personal property or life insurance.
Making a Bequest through Your Will
A simple bequest naming PHPC as the recipient of a portion of your estate is the most direct way to give through your estate and may produce sizable savings to your heirs in income and estate taxes. You may bequeath property or tangible assets; you may designate a specific amount, such as $10,000, or a percent of your adjusted gross estate, such as 10%. You can establish a trust with income retained for someone you name or give a gift of income to the Foundation, with assets passing to your heirs after a specified time.
Including the church in one’s will is done most easily when you are writing your will. However, if you already have a will, you do not need to make a new one: simply add a codicil that makes the church one of the beneficiaries. Examples of wording are offered below.
General Bequest:
This is a codicil to my will. In addition to other gifts made in my will, I do hereby give $_________ OR________% of my estate (or my residuary estate) to Preston Hollow Presbyterian Church, Dallas, Texas, to be used for its general use and purposes.
Permanent Fund Creation: from either your tax deferred account or your general estate:
This is a codicil to my will. In addition to other gifts made in my will, I do hereby give $________ OR ______% to Texas Presbyterian Foundation to create a permanent fund with income only going to Preston Hollow Presbyterian Church, Dallas, Texas, to be used for mission beyond the operating budget. This gift is to be free of any burden to pay death taxes.
A codicil must be signed, witnessed, and notarized; it should be placed with the original will for safekeeping.
Another direct means of creating a bequest for the church is to make the church the beneficiary of a life insurance policy or a tax-deferred savings or retirement account. By making a charitable bequest from a tax-deferred account, the church receives an amount not reduced by the income tax, and other funds are available to your heirs without having to pay the income tax if their bequest had come from this account.
Other Planned Giving Instruments for Members of PHPC
Five planned giving instruments are managed for members of Preston Hollow Presbyterian Church by the Texas Presbyterian Foundation, provided that Presbyterian-related entities are the beneficiary or beneficiaries of at least 50% (percent) of any contract entered into with TPF. TPF is a non-profit foundation of the Synod of the Sun.
Gift Annuity: With a charitable gift annuity, an individual makes a gift to TPF in return for a contract guaranteeing the donor (and perhaps another beneficiary) a fixed income for life, with 50% of the balance ultimately distributed to the Preston Hollow Presbyterian Church and/or other Presbyterian related charities or ministries. Especially appropriate for those who place high value on income security, gift annuities offer many tax advantages and high payout rates, particularly for donors at older ages. The minimum amount for this instrument at TPF is $2,000.
Deferred Payment Gift Annuity: This instrument is designed often for a younger donor who wants a charitable deduction now, but who can choose to receive a considerably higher payout rate by deferring the income for several years, perhaps until retirement. As with the gift annuity, the individual makes a gift to TPF in return for a contract guaranteeing the donor (and perhaps another beneficiary) a fixed income, with 50% of the balance ultimately distributed to PHPC and/or other Presbyterian-related charities or ministries. The minimum amount for this instrument at TPF is $2,000.
Charitable Remainder Unitrust: A charitable remainder Unitrust is established by a written trust document prepared by the donor’s lawyer. The donor’s gift to the trust can be cash, securities or other property. TPF invests and administers the trust assets, distributing income to the donor and/or other specified beneficiaries, either for their lifetimes, or for a fixed period of years, at a rate determined by the donors, with a minimum of 5% of the value of the trust calculated at the beginning of each year. The income payment is a fixed percentage, but the payment amount fluctuates from year to year with the changes in the market value of the trust’s investments. At the termination of the trust, the remaining assets are distributed to Preston Hollow and other ministries as determined by the donor at the outset of the trust. Because a portion of the trust ultimately passes to charity, the government allows a generous income tax charitable deduction at the time the trust is established. The minimum amount of this gift plan at TPF is $50,000.
Charitable Remainder Annuity: The percent is set by the donor that returns a guaranteed annual fixed income to the donor for the remainder of his/her lifetime. The annuity can be for two lives, but they must be touching generations. Usually the percent is from 5% to 7% (percent). This provides an immediate tax benefit and, if appreciated assets were used for the annuity, a favorable capital gains break as well. A Charitable Remainder Annuity has to be set up by a lawyer.
To see what these kinds of planned giving look like, check out this link to the Texas Presbyterian Foundation's planned giving calculator.
* * *
More than 100 PHPC members have told the Foundation that they have included PHPC in their wills or as a beneficiary of another other permanent instrument. Each year, these individuals are honored at a special dinner, where they enjoy a delicious meal, receive an update on the Foundation and its activities, and hear the stories of the real beneficiaries of their legacies: the people who received scholarships or were helped by grants from the PHPC Foundation.
You've made this church an important part of your life.
Why not make it part of your estate planning?
For more information, contact Sara Moseley, Executive Director of the Foundation at 214-368-6348, ext. 151 or smoseley@phpc.org.
The PHPC Foundation assumes no responsibility for your giving plan. While we are happy to answer questions about planned giving, we recommend that you seek advice from your legal and financial advisers.
rev. 7-09
|
