Deferred Gifts

Gifts Planned in a Will or Trust

A bequest is a gift created in your will and/or trust. A bequest is typically the simplest and easiest way of making a major gift to the Church.

Everyone should have a will. Without one, your estate will be probated according to the laws of Michigan, rather than the way you decide.

If you already have a will and/or trust, and you wish to add Albion First United Methodist Church as a beneficiary, this change can normally be made through an amendment and does not require a new will or trust. It is usually best to divide your estate by percentages (for example, “5% to Albion First United Methodist Church, and the balance to my family”) rather than by dollar amounts (for example, “$10,000 to Albion First United Methodist Church, and the balance to my family”).

We encourage you to discuss these arrangements with your attorney.

Gifts from Retirement Plans

The largest portion of most people’s estates today is in the form of retirement assets (IRA, 401K, and other plans). Under current law, such assets passing to children or relatives other than spouses can be taxed at extremely high rates.

Currently, there are very few effective ways to reduce these taxes. Charitable giving techniques may be the best choice.

The laws and regulations concerning retirement assets are extremely complex. However, we recommend that, insofar as you plan to make gifts to Albion First United Methodist Church and/or other charitable institutions upon your death, you should be certain that your estate planning advisors take steps to use retirement assets to satisfy those gifts. This approach will preserve these funds and ensure that they benefit the charities of your choice.

If the Church is Included in Your Estates Plans …

Although the Church does not need to know the details of your deferred gift plans, it is very helpful for the Church to be aware that you have planned a deferred gift for the church. The Church, of course, wants to be mindful of your wishes and having this knowledge in advance ensures that we comply with your wishes.

The IRS has strict guidelines on appraisals in these situation, and tax advisors should be consulted.