Estate planning is a way to give that provides for the long-term future of the church. Below are some ways you can include the church in your estate plan. Contact Harriet Mayes (hmayes@firstumc.org or 863-686-3163) for more information about non-cash contributions and always consult your legal, financial and tax advisors about the tax deductibility of gifts in your particular situation. You are invited to view our Planned Giving Brochure here.

Publicly Traded Securities – Long-term appreciated capital gain property (such as stock) is one of the most common ways to make additional gifts. These gifts are tax-deductible at the full fair market value subject to some limitations. Also, the gain is not subject to taxation to the donor or the church. Example: a donor paid $2,000 to purchase stock now worth $10,000. If the donor sells the stock, he/she pays capital gains taxes on the $8,000 gain. If the donor gives the stock to the church, neither the donor nor the church pays taxes and the donor receives a $10,000 tax deduction.

Personal Property – Tax-deductible gifts of personal property may include antiques, art, jewelry, vehicles, boats, coin or stamp collections and other valuable assets. These gifts of personal property have varying tax deductibility requirements, so be sure to consult with your legal, financial and tax advisors about such requirements. To discuss making a gift of personal property, please contact Harriet Mayes (hmayes@firstumc.org or 863-686-3163).

Insurance Policies – Families often have life insurance policies originally purchased to cover mortgage expenses or pay for college for a child. If these reasons no longer exist, an insurance policy can be a wonderful way to make a gift to the church. The tax deduction is equal to the replacement value or the donor’s cost in the policy, whichever is less. The church will have the option of retaining the policy or taking the current cash surrender value.

Charitable Lead Trusts – A lead trust can be established to provide income to the church for a specified term of years. After the term of years, the assets in the trust revert back to the donor or to the individual(s) designated by the donor. Cash, securities and some types of real estate can be used to fund the trust. There is no income tax deduction for this type of gift but there may be an estate tax savings.

Appreciated Real Estate – A gift of real estate generally will generate a tax deduction for the full appraised, fair market value. Like securities, the capital gain is not taxable to the donor or the church. To discuss making a gift of appreciated real estate, please contact Harriet Mayes (hmayes@firstumc.org or 863-686-3163).

Gifts-in-Kind – Gifts-in-kind are products or materials that can be given to aid particular projects being undertaken by the church. Examples include construction materials (concrete, lumber, bricks, paint, etc.), building materials (windows, doors, plumbing, lighting, flooring, etc.) or furnishings (tables, chairs, audio-visual equipment, appliances, etc.).

Deferred Gifts – Deferred gifts are gifts that are received some time in the future by the church. During that time, the donor retains an interest in the assets. Examples of deferred gifts include bequests, estate notes, charitable remainder trusts, charitable gift annuities, “Pay on Death” accounts, IRA beneficiary and life insurance.

Will my gift be kept confidential? All gifts or donations will be treated as confidential business transactions. If you are giving in honor or in memory of a loved one, the designated person or family is notified of your thoughtfulness. Gifts (not including the amount) are recognized in First Connections, our church magazine. If you wish, your gift may remain anonymous.