Forms of Planned Gifts

Forms of Planned Gifts:

Bequests In a Will

Bequests or gifts in a will are the most common types of planned gifts. They allow a sizable donation without reducing the contributor's assets during his or her lifetime, while possibly helping save estate taxes.

Living Trust Alternative

A Living Trust is a contract that takes effect while you are still living and contains instructions for how all of your assets should be managed upon your incapacity and upon your death. Unlike a Will, a Living Trust does not require Probate administration and saves on court costs and attorney fees. The amount saved in court costs and attorney's fees could go to benefit the charities or causes you support. You can look upon it as a way of supporting Lutherans For Life without it costing your estate to do so. Similar to the manner in which you leave a bequest in a Will, you can provide for Lutherans For Life in your Living Trust. Regardless of whether you create a Will or Living Trust, you will need the assistance of an attorney. Lutherans For Life can provide your attorney with the appropriate language, if necessary.

Gifts of Appreciated Securities

Gifts of appreciated securities are one of the most advantageous ways of giving to Lutherans For Life. By giving securities that have appreciated in value, you ensure an income tax deduction of the full market value to avoid capital gains taxes regardless of the amount of your initial investment

Real Estate and Tangible Personal Property

In the same way appreciated securities can be given, real estate can also be an attractive means of giving which realizes the tax benefits of an appreciated market value. Tangible personal property likewise may be given and credited as an income tax deduction at its present fair market value, so long as certain conditions outlined in the tax code are met.

Life Insurance

A gift of life insurance is another excellent way of contributing to Lutherans For Life. A charitable contribution is generally the replacement cost of a paid-up life insurance policy or the cost basis, whichever is less. A policy that is not fully paid-up may also be given with a charitable contribution allowed for the cash surrender value or cost basis and future premiums are also tax-deductible if Lutherans For Life is both owner and beneficiary of the policy.

Split Interest Trust

A Split Interest Trust is a trust that is treated like a charity although you still have a right to income from it for life. The trust is split into two interests, the present interest is treated as yours and the remainder is treated as charitable. A Split Interest or Charitable Remainder Trust can be used to avoid or reduce capital gains taxes, increase income, and avoid or reduce federal estate taxes. A Split Interest Trust can also be used as a retirement plan instead of an Individual Retirement Account. Unlike I.R.A.'s which can be exposed to liabilities, a Split Interest Trust is irrevocable and would not be subject to liabilities, thus assuring an income at retirement.

Charitable Lead Trust

Another type of Split Interest Trust is known as the Charitable Lead Trust, which is a trust in which you still own the principal but the charity gets the income for a period of years. The advantage is that you can defer recognizing a capital gain until later years when perhaps the capital gains tax rate may be lower or your income tax rate may be lower. Sale of stock or assets prior to retirement is a good example of where this may by useful.

Charitable Gift Annuities

Charitable gift annuities are very desirable means of giving. In this way you may give a gift in a fixed dollar amount to Lutherans For Life through a Foundation which will agree to pay you an investment income throughout your lifetime based on a return on the amount given.

NOTE

Please provide this legal information to your attorney if you wish to include LFL in your will or bequests:

Lutherans For Life, Inc.

1120 South G Avenue

Nevada, IA 50201-2774

Tax exempt #41-1374293

To Discuss Specific Ways of Giving

A representative of Lutherans For Life will be glad to meet with you and your family, attorney, accountant, or tax adviser if you wish, to discuss the mission of Lutherans For Life and how you might include us in your estate plan. We can also help you contact a gift planning counselor if you are interested in trusts or annuities which must be administered by a Foundation of your choice for the benefit of LFL.

The most advantageous means of addressing your own personal tax liabilities and financial plans can be discussed and determined to ensure that your estate is handled according to your wishes.

Lutherans For Life is a 501(c)(3) not-for-profit corporation. Your donation is tax deductible to the fullest extent of the law. Please consult your tax advisor for your personal tax liability.