The Monsignor Beahan Education Endowment Fund
"Planned Giving" is a term that for many people sounds quite imposing and whose meaning is perhaps unclear. Simply stated, planned giving is charitable giving that is part of a family's financial and estate planning.
For people of faith, estate and financial planning is a key component of stewardship. Stewardship is realizing in our minds and hearts that everything we are and everything we have are God's loving gifts to us; we are merely stewards of those blessings.
If you would like to speak to someone at the parish about any form of planned giving, please contact James Nordbeck, Business Administrator at 248-474-5720 or Julie McCormick, Director of Advancement at 248-476-0977.
Planned giving methods include:
The material presented on this page is for your general information on stewardship, estate planning and charitable giving, and is not intended as legal advice. You should consult your attorney and tax and financial advisor for specific transactions of the points illustrated here.
The simplest planned gift to Our Lady of Sorrows is a bequest in your last will or testament or in your living trust to The Monsignor Beahan Education Endowment Fund. This demonstrates the obvious necessity to have a valid will or trust in order to accomplish your goal of leaving a legacy to the Our Lady of Sorrows as your final act of stewardship.
Even if you choose not to make an outright bequest to OLS, it may be a good idea for you to consider The Monsignor Beahan Education Endowment Fund as the beneficiary of a contingent bequest in the event all of your other named beneficiaries no longer exist at the time of your death. This is sometimes referred to as a "clean up" provision. It ensures that your property is distributed according to your plan rather than the state law on estate distributions.
A tax planning point for bequests: To the extent possible, your bequests to The Monsignor Education Endowment Fund should be from assets referred to in the Internal Revenue Code as "income in respect of a decedent." Some examples of these assets are U.S. government savings bonds and retirement plans such as 401(k) plans and IRAs. These assets are ideal for bequests to OLS because they are subject to income tax if received by a tax-paying beneficiary, such as a family member. However, since Our Lady of Sorrows, like other charities, is tax-exempt, income tax can be avoided on bequests of these assets to The Monsignor Beahan Education Endowment Fund.
Bequests may take several different forms:
- A bequest of a specific amount: I give $$$ to....
- A bequest of specific property: I give 100 shares of XYZ Corporation to....
- A bequest of a portion of the residue of your estate: I give 10 percent of the remaining property in my estate to....
- A bequest of the complete residue of your estate: I give all of the remaining property in my estate to....
Advantages of Giving Through Life Insurance
You can use life insurance in many ways for giving to Our Lady of Sorrows through The Monsignor Beahan Education Endowment Fund. Through life insurance, you can continue to support those ministries that have relied on your generous lifetime gifts after your death. Some advantages of giving through life insurance policies are:
- Your wishes will be carried out as specified in the policy.
- Our Lady of Sorrows will receive the amount specified in the policy.
- The proceeds will be paid promptly in cash and will not be diminished by probate costs.
- Your gift will not be exposed to public view or contest.
- The proceeds usually exceed the net amount of the premiums you paid on the policy; thus, your gift is multiplied.
How to Donate Through Life Insurance
There are several ways to donate life insurance to Our Lady of Sorrows through The Monsignor Beahan Education Endowment Fund.
By naming The Monsignor Beahan Education Endowment Fund as a beneficiary but retaining ownership of the policy, you will not be entitled to an income tax charitable contribution deduction. However, your estate will receive an estate tax charitable gift deduction when Our Lady of Sorrows receives the policy proceeds.
If you would like to use your life insurance policy to contribute to The Monsignor Beahan Education Endowment Fund, you should contact your insurance agent or your insurance company's home office for the forms needed change the beneficiary of the policy.
If you no longer need your policy for your estate or family's protection, you can make a gift now by assigning your policy to The Monsignor Beahan Education Endowment Fund. An assignment of the policy transfers all your rights of ownership. These rights include changing the beneficiary, borrowing from the policy, or surrendering the policy for its cash value.
You are entitled to an income tax charitable contribution deduction for the replacement value of the policy, or the net amount of premiums you have paid, whichever is less. You also will be entitled to an income tax deduction for any premiums you pay on the policy after you assign it to The Monsignor Beahan Education Endowment Fund. Moreover, you will have removed the death benefit proceeds from your estate that may otherwise be subject to estate tax.
If you no longer need the death benefit of your policy, but you want to retain ownership, you can give the death benefit proceeds to The Monsignor Beahan Education Endowment Fund the beneficiary of your policy. You can name The Monsignor Beahan Education Endowment Fund as:
- Primary beneficiary, to take the proceeds upon your death.
- Contingent or secondary beneficiary, to take the proceeds if the primary beneficiary predeceases you.
- Partial or residual beneficiary, to take the proceeds along with their named beneficiaries.
Charitable Gift Annuity
A gift annuity is an agreement between you and our organization under which we agree to pay you fixed payments for your life (and/or the life of your beneficiary).
The amount of the annuity is based on the age of the annuitant(s) and the amount of the gift. The gift annuity is a very popular life income plan for several reasons: It requires only a modest contribution and you can fund it with cash or marketable securities. You can receive an immediate income tax charitable deduction for the gift (subject to AGI limitations), spread out any capital gains tax liability, and often increase your spendable income. What’s more, part of your annuity payments may be deductible as well. You simply transfer cash or securities to Our Lady of Sorrows in exchange for a contract to pay you a fixed income (rates based on age) for the rest of your life. Upon your death the remainder goes to Our Lady of Sorrows through The Monsignor Beahan Education Endowment Fund. This option requires a minimum of $10,000.
Gifts of Cash
Cash is the most popular- and simplest- way to make a gift. Your gift is immediately available to support our programs, and every dollar you give is deductible in the year your make your gift. If you give at year’s end, make sure your gift is completed by December 31st. A check mailed by December 31st is considered a completed gift, even though we may not receive or deposit your check until after year’s end. Similarly, a gift made to The Monsignor Beahan Education Endowment Fund can be made by credit card as a completed gift before the year end, although you may not necessarily pay the given amount until after January 1st.