Are you planning a bequest to Our Lady of Mt. Carmel
Most people feel that if they have a will or trust they are finished with their estate planning and the important work of disposing of their earthly assets. This assumption is not accurate because many of a person’s assets are not covered by a will or trust.
Be sure to keep your beneficiary designations on these assets up to date to reflect where you want your money to go. Please consider Our Lady of Mt. Carmel
A charitable gift annuity is a contractual relationship between you and the Diocese that can benefit our parish. When you make an irrevocable transfer of cash or property, the Diocese agrees to pay you and/or your designated beneficiary (usually a spouse) a fixed amount quarterly for the lifetime of one or two annuitants.
Through a special agreement in the gift annuity contract with the Diocese, you can designate Our Lady of Mt. Carmel
The amount of the annuity payout is based on the age(s) of the income beneficiary and the amount or value of the gift to the Diocese. For example, a one-life gift annuity for a person age 75 earns a payment rate of approximately 6.3% for life. A charitable gift annuity for $10,000 would earn $630 in annual payments (for life) and a portion of this income would be tax-free. The minimum amount for a gift annuity is $5,000.00 and there is no maximum.
Many of our parishioners have participated in qualified retirement plans for many years in preparing to retire. You may be one of them. You have watched your fund grow, tax-free. In fact, despite the recent economic downturn many are surprised by the growth in your accounts.
For many people, these retirement accounts are their single largest asset, and they plan to leave the remainder of their retirement plan assets to their children or other heirs. The disadvantage of leaving your remaining retirement assets to heirs (other than your spouse) is the tax consequences.
Retirement benefits given to your heirs will be taxed at ordinary income, while they can be passed to your spouse without immediate tax. In addition, if all your assets are significant enough to warrant the payment of estate taxes, your retirement funds will be liable for both income and estate taxes upon your death. In other words, after taxes, your heirs could receive one-third of the total or less.
One way around this tax problem is to give some/all of the assets to a charity like Our Lady of Mt. Carmel
When you designate the
Another way to give from your retirement account is to have those assets transferred at death to a charitable remainder trust. If the beneficiary is a spouse, (by combining this strategy with the unlimited marital deduction) you eliminate all federal estate taxes attributable to the retirement account.