Legacy gifts come in two forms—current gifts and deferred gifts. Current giving supports current ministry initiatives of Wooddale Church while you and your family take advantage of income tax deductions. Gifts of cash in the form of a check made payable to Wooddale Church, via electronic transfer or via online giving are tax deductible in the current calendar year. Gifts of appreciated stock, or other appreciated assets, offer a current tax deduction for the donor and eliminate the capital gains tax when sold by Wooddale church. Therefore, a gift of appreciated stock is larger and the tax benefit is greater than a gift of stock sale proceeds.
Thoughtful and prayerful estate planning allows an individual to use his/her assets in ways that provide one’s personal needs through retirement years, leave gifts to family members and friends, and provide for God’s work—usually at the end of the donor’s life.
- End of life gifts - The most common deferred gifts are end of life gifts. These include:
- Naming Wooddale Church as a beneficiary in your will. This can be a percent of your estate, a specific sum, a specific piece of property or the residue of your estate after provision is made for others.
- Naming Wooddale Church as a beneficiary of your retirement plan. Giving in this way can offer tax advantages to your heirs.
- Naming Wooddale Church as a beneficiary of a life insurance policy
- A Charitable Gift Annuity (CGA) – A CGA enables you to make a gift of cash or securities to Wooddale Church and receive fixed payments for life. At your death, remaining funds will be available to Wooddale Church. In addition to helping Wooddale Church, a CGA provides the following advantages:
- An income return on the amount given. Your annuity payments may be more than you are presently receiving.
- Immediate tax deduction. The donor receives an immediate income tax deduction.
- Provision for yourself and others…your spouse, a special needs child, a parent. (An annuity may relate to two lives.)
- Lifetime payments. The annuitant(s) receive payments for life.
- Flexibility. You choose immediate or deferred payments and frequency of payments—quarterly, semi-annually or annually.
- A Charitable Remainder Unitrust (CRUT)* - A CRUT is a Charitable Remainder Trust that pays income to the donor or others based upon one or more lifetimes or a fixed period of time. At the end of the trust all remaining assets are given to Wooddale Church. A CRUT pays income based on either a fixed percent of the assets as reviewed annually or the income of the trust up to a fixed percent of the assets. An income tax deduction is available to the donor at the time the trust is established.
- A Charitable Remainder Annuity Trust (CRAT)* - A CRAT is a Charitable Remainder Trust that pays income to the donor or others at a fixed amount set at the time of creation of the trust. The amount of the payment will not vary with the subsequent change in value of the assets. At the end of the trust the remaining assets are given to Wooddale Church. A CRAT provides for a lifetime annuity payment and thus may be more attractive to older persons in an environment of low interest rates and low rates of inflation. There is an income tax deduction for the donor at the time the trust is established.
- A Real Estate Retained Interest Arrangement – In this arrangement a donor transfers residential property such as one’s home, farm or vacation property to Wooddale Church but retains the right to occupy and enjoy income from the property for life or a set period of time. This is accomplished by a deed with retained interest for life or other period of time. The donor continues to maintain the property and paying taxes while enjoying use of the property. There is a current year tax deduction for the donor. A Real Estate Retained Interest Arrangement can be worked in tandem with a reverse mortgage.
- A Charitable Lead Trust (CLT) – A CLT is a trust arrangement whereby a donor transfers funds to a qualified trust which pays income to Wooddale Church for a period of time, with the property eventually returned to the donor or some other person specified by the donor. The income payment to Wooddale Church will be a fixed percentage of the trust assets valued annually. A CLT can provide a potential tax advantage to those hoping to protect heirs from future estate tax.