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Planned gifts are arrangements that you make to benefit MCUM after your death. There are many options that can be considered when arranging a planned gift. Just a few of your options are listed below. Click on each gift title for more detailed information. Bequests Through a Will or Trust For more information about making a planned gift to benefit MCUM, please contact Rebecca Stanze or Meri Reinhold at (812)339-3429. You can also contact a financial advisor or attorney for more information on your giving options. Giving to MCUM through your will is one of the simplest ways to make a planned gift. A bequest is a transfer of property by will – such as cash, stocks, bonds, real estate - and you may specify whether the use of the funds is unrestricted or restricted. Making a bequest is straightforward and easily executed with your attorney. In addition, a bequest to MCUM can save your estate a significant sum in tax payments if the estate is subject to federal estate tax. Types of Bequests: Specific Bequest: You bequeath a designated sum or specific assets to MCUM. Percentage Bequest: You determine the percentage of your estate that should be left to benefit MCUM. Residual Bequest: You direct that MCUM receive all, or a stated portion therein, of your estate after payment of all debts, taxes, expenses, and other bequests. Contingent Bequest: You name MCUM as the beneficiary of your estate if others named in your will are not living at the time of your death. Suggested Bequest Language:
Unrestricted general bequest Restricted general bequest If you plan on making a restricted bequest to MCUM, please contact our Executive Director, Meri Reinhold, or another MCUM representative. We can work with you to design a unique gift that will combine MCUM’s needs with your wishes. Please call us at (812) 339-3429. return to planned giving options list Life insurance is a great way to make a larger gift to MCUM in the future by making smaller contributions in the present. Life insurance can be used in a couple of different ways to make a planned gift to MCUM: 1. You may choose to name MCUM beneficiary of a policy or of part of a policy at any time – all you have to do is contact your insurance company. Although this does not allow an income tax deduction, an estate tax reduction is possible. OR
2. MCUM may be irrevocably named beneficiary and assigned ownership of a new or existing policy. If you do so, your gift will entitle you to an income tax deduction, and future premium payments will be tax deductible. return to planned giving options list Because retirement plan assets are subject to heavy taxation, they are popular in planned charitable giving. If your IRA, TIAA-CREF, 401k or other qualified plans pass through your estate, your heirs must pay both income taxes and estate taxes (if applicable) as they receive distributions. By making MCUM a beneficiary, you could direct the use of your full assets, as MCUM – a tax-exempt organization – would receive 100% of the retirement assets. You may name MCUM as part or full beneficiary of one or more retirement plans. Another option available is to make MCUM an alternative or contingent beneficiary on your retirement plan. return to planned giving options list Charitable Remainder Trusts A charitable remainder trust can provide income to you for life, or for a specified term of years (not to exceed 20). You create the trust through the financial institution of your choice, and you may fund the trust with assets such as cash, securities, or real estate. A charitable remainder trust may qualify you for a current income tax deduction as well as capital gains tax avoidance on the property used to fund the trust. The trust pays you, or another non-charitable beneficiary of your choice, a minimum of 5% as income for life or for a term of years (not to exceed 20). Upon the death of the income beneficiary or the expiration of the term of years, the trust ends and the principal passes to MCUM. You can often avoid capital gains tax, increase income, and save estate taxes. There are two basic types of charitable remainder trusts: Charitable Remainder Annuity Trust (CRAT) pays the named beneficiaries a fixed dollar amount of not less than 5% of the trust’s initial value. This planned giving vehicle is great if you are looking for a stable, predictable stream of income. Once the CRAT has been set up, no additional contributions can be made, and the payout rate cannot be changed. Charitable Remainder Unitrust (CRUT) can provide you with variable income, based upon a fixed percentage of the fair market value of the trust, which is re-valued each year. You can add to your CRUT any time, and you may structure the trust to grow tax-free and defer the income until a later date if you wish. This trust vehicle is a highly flexible financial planning instrument. Charitable Lead Trusts Charitable lead trusts provide current support to MCUM and subsequently transfer the remaining principal back to you, or to your family members with little or no gift or estate tax. You receive a federal estate tax deduction equal to the estimated value of the annual trust payments to MCUM. You can specify the amount of income to be paid from the trust, name the beneficiaries, and indicate the length of time—either a certain number of years or your lifetime. |
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