Planned Giving -- Questions and Answers
What is planned giving?
While all giving requires some kind of planning, planned giving refers to the thoughtful process people use to determine where their assets go when they die.
Does the GSLC family have a planned giving program?
In the late 1990’s, the GSLC church board established the Endowment Committee to promote the importance of planned giving to offer ways for people to “leave a legacy”.
Why does the GSLC family have a planned giving program?
Our faith teaches us that our blessings come from God and that giving back to our church and/or its affiliated ministries is our responsibility as Christians. It is a way we can reflect on our values and what has been important to us during our lifetimes so we can shape the kind of legacy we leave. Planned gifts help build our Endowment Funds and, provide support for new programs and capital expenditures.
What are the GSLC affiliated ministries?
Within the GSLC Endowment family, there are the:
GSLC Ministry – opportunities like the XYZ Fellowship Hall, church transportation, and the Memorial Garden
Mission Ministry – opportunities like Serving Cup, Mnene Parrish, Haiti, Campo Verano, and WIHN
Faith Ministry – opportunities like servant trips, local missions, and the Pan Lutheran School Liturgical Life Ministry – opportunities like the pipe organ, choir trips, and musical exchange programs
Congregational Life Ministry – opportunities like pastoral internships, sabbaticals, witness programs, and leadership education
As growth occurs within the GSLC Endowment program, these ministries may be realigned.
How does GSLC planned giving program work?
Through the Endowment Committee, the GSLC family receives information regarding the importance of planned giving and “leaving a legacy.” After people provide for loved ones in their estate plans, the GSLC planned giving program encourages estate gifts to GSLC and/or its affiliated ministries
How do I begin?
For most people, the starting point is writing a will. Creating a will is one of the most thoughtful things one can do for their loved ones. There are three places our assets go when we die: family and friends, charities or the IRS. A will lets one determine how their assets are to be distributed.
I thought only wealthy people need a will.
People of all ages with estates of all sizes should have a will. People often are surprised when they calculate their assets finding their estates are larger than they thought. For people with children, having a will is a necessity for naming a guardianship of minor children.
Can I draft my own will?
For most people, a lawyer skilled in estate planning is needed to draft a will. If one’s estate plan is complicated in any way, they should seek the advice of an attorney. Spouses should have their own wills. Taking advantage of the tax exempt status of GSLC Church and its affiliated ministries may require an attorney.
How much does a will cost?
Fees related to drafting a will can actually be quite reasonable especially considering a will directs distribution of property one worked a lifetime to accumulate. Fees generally depend upon the size and complexity of an estate. Most attorneys will provide an initial consultation regarding what one’s estate plan requires and provide you a cost estimate.
How do I find the right attorney?
It is important to find someone with whom you are absolutely comfortable. Recommendations from other professional advisors and friends can be helpful. Here are a few questions to ask to help you determine if your attorney is prepared to meet your needs:
- Are you committed to estate planning on a fulltime or nearly fulltime basis?
- What is your special expertise as it relates to estate planning?
- Are you comfortable working with an estate the size of mine?
- Do you have a partner who will be well-versed in my plan is case you are unavailable for my questions?
Once I get a will, am I set for life?
If anything changes in your family structure or financial situation or if tax laws change, you may need to revise your will. A will should be reviewed every three to five years or if any changes occur.
Is a gift in my will (a bequest) the only way to make a planned gift?
A bequest is one of the simplest and most common planned gifts and allows one to make a lasting impact without giving up any assets during life. A bequest can be a percentage of the estate, a specific dollar amount or the residual of the estate. A bequest is not the only way to make a planned gift.
What other ways can I make a planned gift and do any planned gifts provide income?
Another simple planned gift is making a beneficiary designation on an insurance policy or a retirement account. Retirement accounts usually have significant tax consequences making them more desirable to pass on to charities and less desirable to pass on to heirs. Beneficiary designations can be changed.
Charitable trusts or charitable gift annuities that provide an income stream for donors during their lifetimes can be established. Donors also receive tax benefits.
One’s home, condo, duplex, farm, cabin, or other real estate can also be a legacy gift.
Can I designate how my planned gift will be used?
Yes. However, it is best to make broad designations because planned gifts are future gifts and the program you want to benefit may not be in effect at the time the gift is realized. Undesignated gifts give the charity the most flexibility and can benefit the most current needs.
What do I do if I want my gift to be held in perpetuity?
You must state in your will or other documents if you want your planned gifts to be placed in an Endowment Fund. By definition, Endowment Fund gifts will be held in perpetuity. Earnings can be used for Board specified purposes, but the principal will remain in the fund.
If I make a planned gift for GSLC Church should I let someone know about it?
The GSLC family enjoys thanking donors during their lifetimes for planned gifts and appreciates being notified of one’s gift intentions. The appropriate people to tell include the Endowment leader and the senior pastor of GSLC. Many people fear they will outlive their assets and no planned gift will be available. Some people fear they will be asked to do more. The GSLC family appreciates all planned gifts and, understands that circumstances may change. No one is ever pressured to do more.
Do you have examples of beneficiary designations for wills?
These are examples of will beneficiary designations for illustrative and educational purposes only and should not be considered tax or legal advise.
- Specific Amount - I give the sum of $1,000 to the Endowment Fund of the GSLC, at Good Shepherd Lutheran Church, 7000 Creedmoor Road, Raleigh NC 27613
- Share of Total Estate - I give an amount equal to 10% of my total estate to the Endowment Fund of the GSLC, at Good Shepherd Lutheran Church, 7000 Creedmoor Road, Raleigh NC 27613
- Share of Remainder of Estate - I give one-half of the remainder of my estate to the Endowment Fund of the GSLC, at Good Shepherd Lutheran Church, 7000 Creedmoor Road, Raleigh NC 27613
- Specific Assets - I give my 30 shares of Jones Power Company common stock to the Endowment Fund of the GSLC, at Good Shepherd Lutheran Church, 7000 Creedmoor Road, Raleigh NC 27613
- Remainder Interest (After a Life Estate) - I give to my daughter, Jane Doe, an estate for the term of her life in the real estate described as Lot 1, Block 2, Doe Addition, Wake County, North Carolina. I give the remainder interest in such real estate to the Endowment Fund of the GSLC, at Good Shepherd Lutheran Church, 7000 Creedmoor Road, Raleigh NC 27613
- Contingent Gift - If my spouse does not survive me I give the sum of $10,000 to the Endowment Fund of the GSLC, at Good Shepherd Lutheran Church, 7000 Creedmoor Road, Raleigh NC 27613
If you are interested in leaving a legacy, please contact an Endowment Committee Member or the Senior Pastor.