For more information about legacy giving, contact David Stanley, Legacy Chair.
In California, a trust written by a qualified legal adviser, is the foundation of a good estate plan. By naming MDUUC as a beneficiary in your plans, you can make a charitable commitment while retaining full use of your assets during your lifetime. Bequests of all sizes are encouraged as a way to contribute to the endowment at a later date. Bequests may be made for a specific dollar amount, a percentage of the total estate, or a residual portion of the estate. A bequest to the MDUUC endowment is entirely free of federal estate tax.
One of the simplest ways to provide for MDUUC is to name the Church as a beneficiary of your retirement plan, such as an IRA, Keogh, or 401K plan. No lawyers are needed; all you do is file a beneficiary-designation form with the company that holds the retirement plan. Because of the simplicity, retirement plan donations have steadily grown in popularity.
By comparison, if you left the retirement plan to your estate, your heirs would incur income taxes — remember, it was originally purchased with pre-tax dollars — plus any estate taxes that might apply.
Transfers of Appreciated Stock
If you hold stocks worth more than you paid for them, they can be attractive as charitable gifts. You receive a current-year tax deduction for their full market value without incurring any taxes on their appreciation. As a comparison, if you sold the stock and donated the proceeds, your net gift would be lower because of capital gains tax that you’d owe. Your gift is “leveraged” by the amount of the avoided tax.
Gifts of paid-up life insurance policies, new policies, or policies that no longer are needed are excellent ways to make a tax deductible gift, now, without affecting your current income.
Charitable Gift Annuities
A gift annuity is a vehicle to make a tax deductible gift, now, and receive annual annuity payments for life or the life of a second beneficiary. The annuity amount is determined by the size of the gift and the age of the donor.