Q. How do I include First Presbyterian in my will or living trust?
A. The most common way people remember First Presbyterian in a will or living trust is through a charitable bequest. You do not have to rewrite your current documents. You simply add an amendment, called a codicil, to your will or living trust. Here is some suggested language you can have your attorney review: "I give devise and bequeath to First Presbyterian Church located in Annapolis, Maryland the sum of ____________ dollars ($ _________). (Or state a percentage of your estate, or describe real or personal property, including exact location.) For the benefit of its general purposes (or specify the First Presbyterian program you wish to support)."Your bequest is entirely under your control during life and becomes irrevocable only at death.
Q. What's the big advantage in making First Presbyterian a beneficiary of my retirement plan?
A. A designation in your IRA or other retirement plan may be a very cost-effective way of making a gift to First Presbyterian Church. If you leave your retirement plan to your children, they will have to pay income tax on either a lump sum distribution or the income stream from the plan. First Presbyterian Church does not pay this tax. Here's an example of what this can mean to your heirs: A widower died a few years ago. He left his $300,000 house to charity and his $300,000 retirement plan to his relatives. He should have done just the opposite.
The relatives had to pay income tax on the $300,000 in the retirement plan, an $80,000 cost to them. If they had received the home, and the charity had received the retirement plan payment, no one would have paid income tax.
Q. Can I use my life insurance policy to make a planned gift to First Presbyterian Church?
A. Yes. Using an existing life insurance policy is a quick and convenient way to make a planned gift commitment to First Presbyterian Church. Ask your insurance company for a beneficiary designation form, name "First Presbyterian Church located in Annapolis, Maryland" as a beneficiary of a percentage of the ultimate value of the policy or for a fixed amount, and send the beneficiary designation form to the company that holds your policy. Some life insurance company Web sites make this exceedingly easy.
Q. What kind of donors should consider a charitable remainder trust?
A. Donors who want income for life, bypass of capital gains tax on stock or real estate, reduced taxes, and the satisfaction of providing for First Presbyterian Church. Anything you place in a charitable trust--cash, stock, real estate--is invested by the trustee to pay you income for the rest of your life and, if you wish, pay your heirs for life or for a term of years. After the death of all income beneficiaries, what remains in the trust passes to First Presbyterian Church. Your trust may provide you with some important tax benefits:
• An immediate income tax deduction for a percentage of your gift.
• No tax on the sale of appreciated property.
• The trust principal passes to First Presbyterian Church free of estate tax.
Q. What should I do if I have already remembered First Presbyterian in my estate plan?
A. We would be honored to enroll you in First Presbyterian’s 1846 Anchor Society, so please let us know of your bequest by contacting our Business Manager, Dottie Ballard, at firstname.lastname@example.org or 410-267-8705 ext. 107.