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FOUNDATION NEWS Caring for the Ministry of Grace: "Ecclesia Perpetua" May 2006 | ||||
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You've probably seen the bumper sticker behind an RV that reads: "We're Spending Our Kids' Inheritance." Upfront, a gray-haired driver jockeys the vehicle down the road toward a warmer climate. Grandma and Grandpa are having a ball and don't mind poking fun at the idea that they should live conservatively so they can leave more money for their children.
Not everyone feels that way. Many seniors are eager to leave their offspring a nice nest egg. They remember the tough times they had and now want to make life a little easier for the next generation. They want to pass their hard-earned wealth on to their families. So when they are confronted with the idea of giving some of their wealth to a worthy ministry like their congregation, they balk. "If I give these assets to the church, I won't be able to transfer them to my own family." Truth is, you don't necessarily have to decide between the church and your family. There are ways you can give to ministry without jeopardizing your family. Consider these possibilities: Insurance. Some donors use life insurance to replace the wealth they give to charity. A second-to-die policy placed in a special trust can be quite reasonable, and provide the beneficiaries with proceeds that approximate the amount given to the church, which are not subject to estate tax. |
A Charitable Trust. You can establish a charitable trust now and receive income for the remainder of your life, and
then have the income directed to your children. At the end of the trust, the principal will go to charity. A Testamentary Charitable Trust. This high-sounding option simply refers to a trust that is established through your will when you die. You can arrange for income to be paid to a favorite ministry for a limited time and then have the principal go to your loved ones. Or, you can provide income to loved ones for a limited time and then have the principal go to the charity. In both cases, estate taxes will be reduced. These special planning tools are not for everyone, to be sure. But for persons with assets, they can provide a means to benefit family members and charity without taking away from the other. Our synod's Director of Planned Giving, Dr. Patricia Larsen, can provide further information about the above planning opportunities, as well as others. She is also able to help you orchestrate any of these gift plans by working closely with you and your professional advisors. Call her at (503) 413-1405 or email her at Blessed2Give@cs.com. Who knows . . . maybe you'll want to create your own bumper sticker. Here's a puzzler you might use: "Our Kids Will Get Their Inheritance When We Give It to Our Church." | ||||
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