Episcopal Relief & Development Launches $500,000 Holiday Matching Gift Challenge
Read about how planned giving options enabled these donors to both meet their financial needs and support people in poverty worldwide.
Mary and Bill: Landing on a Retirement Solution
Retirement Unitrust – Gift Annuity
Valerie: Careful Savings Become Charitable Savings
Gene and Carol: Gone Fishing
Gift of Stock – Gift Annuity
Jack and Wanda: A Pastoral Legacy
Bequests and Wills
Lorraine: Home Is Where the Heart Is
Charitable Life Estate Contract
David and Bonnie: A Valentine’s Day Surprise
Honor Gift — Charitable Remainder Trust
Sharon and Bob: Sharing Sentimental Shares
Gift of Stock — Charitable Remainder Unitrust
Landing on a Retirement Solution
“We already have an IRA that we plan to use for retirement. Now, with the extra income from this retirement trust, we will be able to travel and really enjoy our golden years.”
When her parents passed away, Mary inherited the farm where she grew up. Over the years, the city had expanded to include the farm within its limits, and several developers were interested in building homes on the farmland.
Mary and her husband, Bill, had received modest payments from the farm. By the time she inherited the farm, its value had greatly increased.
Since it was a good time to sell the land, Mary and Bill wanted to take advantage of the opportunity. They learned from their tax advisor that the farm could be sold, but the taxes would be very high. However, the advisor had another suggestion: a retirement unitrust.
“I was excited to learn from our tax advisor that there is a plan that does provide for our retirement,” Bill said. “She explained that we could give the land into a special trust. With this trust, the farm could be sold tax-free and the cash invested for growth. The proceeds can then grow tax-free inside the trust until we retire. At that time, the payouts will be taxable, but we could have as much as $900,000 in the trust.”
They decided to let the sale proceeds grow for about 10 years until they plan to retire. In fact, they hoped to be able to sell tax-free and allow the proceeds to grow tax-free as well.
“We will enjoy a very nice retirement,” said Mary. “We already have an IRA that we plan to use for retirement. Now, with the extra income from this retirement trust, we will be able to travel and really enjoy our golden years. It’s a really brilliant solution that allows us to contribute to Episcopal Relief & Development while we secure our own financial future.”
Contact us to find out how you can develop a retirement unitrust.
Careful Savings Becomes Charitable Savings
Charitable Gifts Annuity
“I was very pleased to discover that, based upon my age, a gift annuity would pay 8%. Plus, there would be a good tax deduction and part of the income would be tax-free.”
Valerie is a retired high school English teacher. She has been a careful saver and has a number of certificates of deposit (CDs).
“Over the past three years, the return on my CDs has declined significantly,” Valerie said. “I have looked carefully, but there just aren’t any CDs with a good rate of return — and I’m also interested in a secure return. I want to know that a good return will be paid. The ideal choice for me would be a secure high return.”
Valerie talked with a friend, who had found exactly that choice: The friend set up a gift annuity with her favorite charity. Valerie thought that perhaps the gift annuity would be helpful for her, too.
“I called the Episcopal Church Foundation and asked about a gift annuity,” Valerie said. “I was very pleased to discover that, based upon my age, a gift annuity would pay 8%. Plus, there would be a good tax deduction and part of the income would be tax-free.”
After finding out how to set it up, she transferred money from a mature CD into a charitable gift annuity. She was also excited to learn that the charitable deduction would save her over $3,000 in taxes that year. Valerie’s fixed payments from the gift annuity are about two times what she was receiving from her one-year certificate of deposit. She is delighted with the increased income and charitable savings.
To find out how a charitable gift annuity might benefit your financial situation, please contact us today.
Gifts of Stock — Charitable Unitrust
For many years, Gene and Carol had talked about taking part of their stock value and putting it toward a lake home.
Gene and Carol purchased stock in a small medical service company a number of years ago. The company had done well and a larger company was thinking of buying it. “We were fortunate to have invested in the medical service company,” Gene said. He explained that over the years, medical services have become more and more important, especially for senior citizens.
“We thought this stock would grow and indeed, it has increased in value,” Carol said. “We paid about $50,000 for the stock and it is now worth $400,000. If we were to sell the stock, we would pay a large tax.”
Gene and Carol are avid fishers. They own a boat and keep it in a boathouse that belongs to their friends. For many years, they had talked about taking part of their stock value and putting it toward a lake home.
“We had our eye on a very nice summer cottage,” Carol said. “The price was going to be approximately $120,000. So we had a dilemma. How could we take $120,000 in cash from the value of the stock and not pay taxes?”
They checked with their CPA to get his suggestions. Knowing that Gene and Carol were very involved in their Episcopal Church, he advised them to contact Episcopal Relief & Development about planned giving options.
“We were happy to discover that we could transfer $280,000 worth of the stock into a special trust — a unitrust. When we transferred the stock into that trust, it was then sold tax-free,” explained Carol. “Best of all, we were able to sell the other $120,000 of the stock for cash. The deduction on the charitable trust saved enough in taxes so that we did not have to pay tax on the $120,000. The full $120,000 was available and we could purchase our lake home.”
“This was a wonderful agreement,” Gene agreed. “I am pleased that we were able to set up the trust. We now have income from our unitrust, we are enjoying our new home, and we love having the opportunity to go fishing whenever the mood strikes.”
To learn about how a unitrust could benefit your financial situation, please contact us today.
A Pastoral Legacy
Bequests and Wills
Knowing that the kids had no interest in living on the farm, Jack and Wanda had to decide what would happen to their land after they were gone.
Jack and Wanda live on a large farm where they grow vegetables and raise a wool-producing herd of sheep. With its rolling fields, deep green pastures and tree-lined stream, the farm always provided a fulfilling and satisfying life for the couple.
By watching their budget and saving their profits, they were able to send their two children to college. After graduation, the children moved to the city and developed successful careers. Neither of them had an interest in returning to work on the farm.
Knowing that the kids did not want to live on the farm, Wanda and Jack had to decide what would happen to their land after they were gone. With its pastoral beauty, the land would certainly appeal to anyone seeking the rural life. The farm’s value had increased over the years, enhanced by the nice house and barn that Jack built.
The couple gave serious thought to the people and charities they wanted to remember in their wills. They were concerned that the process would involve complex legal documents and expenses. However, when Jack and Wanda met with their attorney, she explained that wills are relatively simple documents that are cost-effective to prepare – and the wills could take care of all their planning goals. With the attorney’s help, the couple wrote their wills and divided the property between their two children and Episcopal Relief & Development.
Jack and Wanda are now assured that their children will enjoy the results of their prosperous farm. And they are happy to leave a legacy to Episcopal Relief & Development. They even got to specify how the money would be used, so they know the bequest will benefit a cause close to their heart: Their gift will help struggling farmers become successful.
Learn more about how you can include Episcopal Relief & Development in your will by contacting us today.
Home is Where the Heart Is
Charitable Life Estate Contract
Lorraine’s children were married, successfully employed and living out of state. What would eventually become of her home?
Lorraine looked outside her frosted kitchen window at the bare trees and the snow remaining from a recent winter storm. Like so many times in the years since her husband, Stan, had died, she thought about all the memories created in their home. Her children were married, successfully employed and living out of state. What would eventually become of the home?
Stan had been a good provider and savvy investor. Lorraine had worked too, and was comfortable enough financially to take care of herself for life and eventually leave something not only for her family, but also for charity.
She and her financial advisor sat down to discuss some “what if” scenarios. Lorraine had read a gift planning brochure she picked up at church. The advisor told her that she definitely could gift a remainder interest in her house and continue living there for life; after her passing, the charity could sell the house and use the proceeds to further its mission. Lorraine would get a significant charitable deduction based on the present value of the remainder interest in her home.
Signing the charitable life estate contract with Episcopal Relief & Development brought a sense of peace to Lorraine. The memories from her cherished family home are priceless, and she could think of no better way to honor the home than by allowing its monetary value to offer hope for struggling families.
If you would like to learn how a gift of a charitable life estate contract can benefit you now and in the future, please contact us.
A Valentine’s Day Surprise
Honor and Memorial Gifts
Bonnie and David’s unique gift — a charitable remainder trust — will benefit Episcopal Relief & Development while providing Bonnie’s parents with a lifetime income to supplement their fading retirement funds.
Bonnie and David had been exchanging Valentine surprises throughout their 20-year marriage. Both had successful careers, David as a commodities broker and Bonnie as a pediatrician.
Bonnie’s parents, Mr. and Mrs. Swanson, had skimped and sacrificed to help her get through medical school. Now they lived a simple life, and Bonnie and David were always there to help when necessary. The Swansons had never traveled much, but they hoped someday to visit Hawaii.
David and Bonnie realized that Mr. and Mrs. Swanson’s 50th wedding anniversary was quickly approaching. That year, instead of giving each other gifts, the couple decided to surprise her parents with their dream vacation.
But in speaking with their financial advisor, they learned about an even more meaningful and long-term gift for the Swansons — a charitable remainder trust, providing them with a lifetime income to supplement their dwindling retirement funds.
When Mr. and Mrs. Swanson arrived in Hanalei, on the island of Kauai, so did Bonnie and David. They presented a lasting gift that benefited both the Swansons and Episcopal Relief & Development. All four agreed it was truly a wonderful Valentine’s Day — and one they would never forget.
Contact us today to find out how you can develop a charitable remainder trust.
Sharing Sentimental Shares
Gifts of Stock — Charitable Remainder Unitrust
Sharon and Bob learned how a charitable remainder unitrust offered the perfect opportunity for their stock.
Sharon and Bob worked on the assembly line for a major corporation. They were colleagues and friends for a long time before the relationship became romantic. Their first date was right after the company holiday party. As the couple married and began navigating through life’s changes, their careers developed as well. Although they both found new opportunities and earned promotions, the couple remained at the same company — and with each paycheck, they received shares of company stock.
Even after Bob and Sharon retired, the shares’ value continued growing. The couple refused to sell their shares for sentimental reasons — and because of the large capital gains tax that would be due.
They decided to inquire with Episcopal Relief & Development about giving options, and soon learned how a charitable remainder unitrust offered the perfect opportunity for their stock.
Sharon and Bob transferred many of their shares to fund the unitrust. The trust then sold the stock tax-free and invested the proceeds, and the couple received income from the trust each quarter for their remaining years. They also received an income tax deduction for a portion of the funding amount and, since the stock was sold tax-free, they eliminated the need to pay capital gains tax. More importantly for Bob and Sharon, the stock that held such sentimental value has become an invaluable and loving gift for people in need.
If you would like to learn how a charitable remainder unitrust can benefit you now and in the future, please contact us.