Estate Planning and Gifts

Estate Planning and Gifts

Estate Planning and Gifts

Estate planning is a way to give gifts that provide for the long-term future of Community United Methodist. A few ways you can include the church in your estate plan are listed below.

Publicly Traded Securities
Long-term appreciated capital gain property (such as stock) is one of the most common ways to make additional gifts. These gifts are tax deductible at the full fair market value subject to some limitations. Also, the gain is not subject to taxation to the donor or the church.

Example:

  • Donor paid $2,000 for stock now worth $10,000
  • If donor sells the stock, he/she pays capital gains taxes on the $8,000 gain
  • If donor gives stock to church, neither donor nor the church pays taxes and donor receives $10,000 tax deduction

Personal Property
Tax-deductible gifts of personal property may include antiques, art, jewelry, vehicles or boats, coin or stamp collections, as well as other valuable assets. These gifts of personal property have varying tax deductibility requirements so be sure to consult with your legal, financial, and tax advisors about such requirements. To discuss making a gift of personal property, please contact Sherry Dowling, Church Treasurer, Community United Methodist Church | 41 West Highbanks Rd.  | DeBary, FL  32713  |  386.668.4805 ext. 13.

Insurance Policies
Families often have life insurance policies that were originally purchased to cover mortgage expenses or pay for college for a child. If these reasons no longer exist, an insurance policy can be a wonderful way to make a gift to the church. You may also purchase an insurance policy that names the church as beneficiary upon the insured’s death, at which time the proceeds are paid to the church without the amount of the insured’s estate is not reduced. The tax deduction is equal to the replacement value or the donor’s cost in the policy, whichever is less. The church will have the option of retaining the policy or taking the current cash surrender value.

Charitable Lead Trusts
A lead trust can be established to provide income to the church for a specified term of years. After the term of years, the assets in the trust revert back to the donor or to the individual(s) designated by the donor. Cash, securities and some types of real estate can be used to fund the trust. There is no income tax deduction for this type of gift but there may be an estate tax savings.

Appreciated Real Estate
A gift of real estate generally will generate a tax deduction for the full appraised fair market value. Like securities, the capital gain is not taxable to the donor or the church. To discuss making a gift of appreciated real estate, please contact Sherry Dowling, Church Treasurer, Community United Methodist Church | 41 West Highbanks Rd.  | DeBary, FL  32713  |  386.668.4805 ext. 13.

Gifts-in-Kind
Gifts-in-kind are products or materials that can be given to aid particular projects being undertaken by the church.

Examples:

  • Construction materials: concrete, lumber, bricks, roofing, paint, etc.
  • Building materials: windows, doors, plumbing, lighting, flooring, etc.
  • Furnishings: Tables, chairs, audiovisual equipment, appliances, etc.

Deferred Gifts
Deferred gifts are gifts that are received some time in the future by the church. During that time, the donor retains an interest in the assets. Examples of deferred gifts include bequests, estate notes, charitable remainder trusts, charitable gift annuities, “Pay on Death” accounts, IRA beneficiary, and life insurance.

Will My Gift Be Kept Confidential?
All gifts or donations will be treated as confidential business transactions. If you are giving to Community United Methodist n honor or memory of a loved one, the designated person or family is notified of your thoughtfulness. All gifts (not including the amount) are recognized in our church newsletter. If you wish, your gift will remain anonymous.

For more information, contact Sherry Dowling, Church Treasurer, Community United Methodist Church | 41 West Highbanks Rd.  | DeBary, FL  32713  |  386.668.4805 ext. 13..

Please remember to always consult with your legal, financial, and tax advisors regarding the tax deductibility of gifts in your particular situation.