Legacies/Bequests

1. Update your Will or Trust

During the past year a record number of individuals updated their will or trust.  Is 2021 the year for you to update (or make) your estate plans? While you may want to provide for your children, grandchildren, or others from your estate, many individuals find great joy and purpose in giving to CBM and other ministries through their will or trust.

• Many Christians will choose to make a “tithe” of their estate to ministry at the end of their lives. 
• Others will make plans to give a quarter, a third, or even all of their estate to their church and various ministries. 
• These gifts can be the “gift of a lifetime” and make a difference in the church around the world for decades to come! 

2. Give Directly from Your IRA

If you are over age 70 ½, current tax law allows you to gift up to $100,000 from your IRA directly to charity and exclude that amount from your taxable income. This is called a Qualified Charitable Distribution (QDC) and is becoming a favorite way for retirees over age 70 ½ to increase their donation effectiveness.

• Since the new tax law nearly doubled the standard deduction, this means that many retirees can no longer deduct their charitable contributions because they do not have enough itemized deductions to meet the threshold.
• Many IRA owners who are over 70 ½ have the best of both worlds. They can eliminate the income tax from their IRA required distribution and take the higher standard deduction.

3. Revise your Retirement Fund Beneficiary Designation

If you are like many people, your retirement fund (such as a 401K, 403B, or IRA) is one of your largest assets.  CBM donors have found that they can make their largest gift ever by naming CBM as a beneficiary of a portion (or all) of their retirement fund. 

• This gift costs nothing during your lifetime, but can have a powerful impact on serving people with disabilities around the world. 
• These gift arrangements are simple and can also reduce taxes for your heirs, since most non-spouse beneficiaries will need to pay taxes when they inherit money from a tax deferred retirement account.

4. Give Appreciated Assets rather than Cash

With the stock market near an all-time high, giving stock or other appreciated investments directly to CBM can have a big tax benefit. By contributing long-term (held for over one year) appreciated assets such as stocks, bonds or real estate, you can avoid the capital gains tax (up to 20%) you would have incurred by selling the assets.

• This allows you to give up to 20% more, while also receiving a charitable deduction for the fair, full market value of the donated assets.
• Donating appreciated assets could also increase your spendable income, because it could take the place of donating cash. This can be a real win-win situation!

CBM can be your Partner in Planning – We would love to help you align your ministry goals with various giving opportunities (like those mentioned above). Feel free to contact Janelle Walker to start a strategic conversation about smart giving strategies today!