Ways to Make a Legacy Gift
A Legacy Gift of any size is significant. The best gift is one that is appropriate for your particular circumstances. A Legacy Gift can be structured to benefit the donor or The Ark Church during the donor’s lifetime, or, to benefit The Ark Church at the death of the donor (some examples are listed below):
Bequest in your will
A bequest is the simplest and most common type of Legacy Gift. For example the following wording could easily be added to an existing or new will:
“I give and bequeath to The Ark Church at 450 Humble Tank Road, Conroe, Texas 77304, the sum of $___________ OR _______ percent of my remaining estate, for The Ark Church’s Legacy Foundation Fund.”
Charitable Gift Annuity
A gift is invested and the donor receives a guaranteed payment for life based on the donor’s age at time of gift. See your financial advisor for more information and specific direction.
Insurance
An existing or a new insurance policy may be donated.
401K Retirement Benefit Plans and IRAs
Benefit plans and IRAs donated to The Ark Church may provide important tax savings to the donor.
Stocks, bonds, real estate, and property
Property that has appreciated allows a tax deduction for the current market value without incurring tax on the capital gain.
More Information
Bequests are attractive to those who wish to retain control of assets during their lifetimes and to help The Ark Church later. Bequests can also reduce estate taxes. They can take the form of either a dollar amount, a percentage such as a tithe or 10%, or a residual of an estate, determined after other bequests have been made to heirs.
If you don’t already have a will, consider doing one: making decisions about your estate now can relieve stress on your loved ones after you are gone. If you do have a will, you might consider reviewing or amending it under a variety of circumstances, including: family changes such as birth, marriage, divorce, death; children grown or independent; a move to another state; death of a named guardian; executor unable to serve; acquisition of real estate or assets in another state; change in financial situation; change in heir’s situation or incapacity; change in tax law; change in charitable interests. Wills can be changed at any time by amendment, called a “codicil”. Contact an attorney to ensure that your intentions are properly formalized.
NOTE: If you need assistance or recommendations with finding a qualified local attorney, please contact the church offices, Legacy Foundation. We have relationships with area attorneys that are qualified and ready to assist you.
A charitable gift annuity through The Ark Church Legacy Foundation allows you to receive lifetime income and may also provide immediate financial support to The Ark. This program may give you the satisfaction of witnessing the impact of your gift now, while also providing you with an attractive annual payment.
A charitable gift annuity through the Legacy Foundation is a contract between you and the Foundation. In exchange for a gift, the Foundation will pay annual income to one or two persons for life. It can be established to pay lifetime income for another person; for example a spouse, parent, or other loved one. Payments will never vary. In addition, donors are often able to 1) receive favorable tax treatment of the gift annuity payment and 2) claim a portion of the gift amount as a charitable contribution.
Contact your Financial Adviser for additional information regarding gift annuities.
“As each has received a gift, employ it for one another, as good stewards of God’s varied grace.” (I Peter, 4:10).
Another tool to use in giving is a retirement account. Did you know you can provide for The Ark Church at your death without even changing your will? You can simply change the beneficiary designation of your retirement account. This is also one of the most efficient ways to give. Here’s why:
Retirement accounts typically accumulate pre-tax dollars. The pre-tax accumulation allows for the principal to grow more quickly than if income taxes had to be paid each year. During retirement years, account owners use these assets for living expenses, but income taxes have to be paid as withdrawals are made. Often, the retiree’s other income is reduced, so the tax bracket is lower. Therefore, the tax triggered by distributions from the retirement account may be in the lowest tax bracket.
Many times, retirement account owners pass away with significant account balances. These balances are still pre-tax. Whoever receives a distribution will be required to pay the income tax based on the tax bracket of the recipient, which is often higher than the retiree’s tax rate. In addition, the estate of retirement account owners may be subject to estate taxes. The combination of income tax and estate tax could cost 80% of the account balance, meaning that possibly as little as twenty cents of every dollar in the retirement account would be available to heirs.
Why not consider the option of leaving some, if not all, of your retirement account to The Ark Church? All you need is a change of beneficiary form, available from your plan administrator. Every dollar that is passed to The Ark Church at your death will benefit both you and the church at one hundred cents on the dollar. There will be no income tax or estate tax due on those assets, making it one of the best assets to leave to the church. With this simple technique, you can continue your generous support of the church and leave the legacy you desire.
To discuss creating a Legacy Gift, contact The Ark Church: Legacy Foundation.