Methods of planned giving include:

Trusts
A funded revocable living trust may be the most expedient way to retain maximum flexibility of assets during life, to provide for the distribution of the trust's assets upon death, and to avoid the complexity of probate. There are several other kinds of trusts. Among those are unfunded trusts, testamentary trusts, and charitable trusts. Each type has its own purpose and, if properly designed, may decrease or eliminate estate and income taxes.

Gift Annuities
Gift annuities involve just what the name implies—a gift to a charitable organization and, at the same time, an income for life for the donor. Gift annuities may be funded with cash, securities, or property (either real or personal). The amount of annual income is determined by the age of the donor(s) at the time of the agreement. In addition, the donor may claim a charitable deduction for a portion of the assets used to fund the annuity.

 

Gift of a Remainder Interest in a Residence or Farm
A gift of a remainder interest in a personal residence, vacation home, or farm will provide the donor with a charitable deduction. Perhaps more important, the donor may continue to occupy the residence or operate the farm without interruption. To receive these benefits, however, the donor does not have to remain in the residence or operate the farm. The donor could rent the home or farm and receive a stream of income for life.

 

Life Insurance
An excellent and often overlooked method of charitable giving is through life insurance. By transferring to NICM all rights of ownership in a life insurance policy, a donor may receive a substantial deduction for income tax purposes. In addition, payment of premiums may also be deductible. A donor will also receive the joy of helping to ensure NICM's future by merely naming the ministry as the sole beneficiary or a partial beneficiary of an insurance policy.

 

Bequests
Good stewardship demands that every Christian have a valid Last Will and Testament. Through a will, a person determines the people and charities that receive assets at the time of death. Without a will, the laws of the state of residence will determine how an estate will be distributed. Within a will, it is easy to include charitable gifts, such as a certain sum of money, a percentage of the estate, a particular parcel of real property, and an item of personal property. It is important to remember that a bequest to NICM through a will does not transfer any interest in property while the donor lives. The transfer becomes effective only upon the donor's death.

 

Retirement Accounts
Retirement accounts have become a major asset in many estates. Assets with retirement accounts pass from the owner(s) according to instructions written in a beneficiary designation form, not by a will or a trust. Beneficiaries can be individuals, charities, or both. Since retirement accounts have both income tax and estate tax considerations, the beneficiary form should be prepared carefully with professional counsel.

 

Full details of any of these categories of Planned Giving can be obtained by contacting Nashville Inner City Ministry.  Interested individuals should also consult their personal certified public accountant for full tax effects.