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THE STEWARDSHIP CORNER Courtesy of Thrivent for Lutherans Life Insurance Beneficiary Every year, many people choose to provide a life insurance beneficiary gift to their church or to a qualified charitable organization. In this gift, donors simply name the organization as the beneficiary of their life insurance contract. The gift is simple to understand and implement. Contract owners maintain control of the contracts until their deaths, so they can choose to change beneficiaries if they want. Insurance proceeds are estate tax deductible. For those who want to leave a gift at death and for those who desire to create a larger gift through smaller annual premiums, the gift of life insurance is ideal. Investment Gift An investment gift can be accomplished by transferring ownership of an appreciated investment, like stock, mutual fund shares, or real estate, to an IRS recognized charity. Why do some people make investment gifts? The benefits of giving highly appreciated assets to charity include the ability to take a charitable income tax deduction for the full value of the gift, assuming the donor can itemize deductions. In addition, the capital gains tax is completely eliminated as well through the gift. If the donor has a large estate on which estate taxes will be due, then the estate tax may be reduced or eliminated as well. Bequest in Will or Trust Another giving method is through a will bequest at the donor's death. To create the gift, the donor includes a gift provision in his or her will or living trust document to leave a specific asset, dollar amount or fixed percentage of the donor's estate to charity. Upon the donor's death, the donor's estate representative or trustee is responsible for completing the gift to the charity identified in the will or trust document. Until death, the donor enjoys full control and use of the money. Thrivent Financial for Lutherans, and its respective associates and employees cannot provide legal, tax or accounting advice or services. Work with your team of professionals, including your Thrivent Financial representative, your attorney and tax professional to determine and implement the appropriate action. For further information or for assistance in establishing a gift, contact Sal Bisgard or Carrie Niles at 605-947-4609 (Waubay) 698-9015 (Sisseton) or 1-800-508-9015 |