Leaving a legacy

Planned giving, or legacy giving, is an opportunity for members and friends to give to Holy Trinity as part of their overall financial and estate plans. While regular, cash giving is certainly important to the day-to-day ministry of the church, planned gifts form the foundation for Holy Trinity’s long-term financial health.

In most cases, giving to Holy Trinity through your estate plansprovides for a larger impact than you might otherwise make, andby making a planned gift, you can also designate which ministry orgoal is most important to you, for example:
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● Holy Trinity and/or Bach Vespers Endowment Fund
● H.U.G and Homeless Ministry Fund
● Bach for the Big Apple Campaign
● Endowing staff, music, historic preservation, and more
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The strategies for leaving a legacy that are contained in this pamphlet are for illustrative purposes only and should be used toprompt a conversation with a trusted financial professional.

IRA, 401(k), or 403(b)

For most people, a retirement account like an IRA, 401(k) or 403(b)will become the most significant source of assets accumulated in their lifetime. Unfortunately, while these types of accounts are great retirement vehicles, they make poor inheritance vehicles, and up to37% of the asset could be forfeited to taxes when passed to an heir.

One strategy for legacy giving is to name Holy Trinity as the beneficiary on an IRA, 401(k) or 403(b). As a tax-exempt charitable organization, Holy Trinity can receive the full value of the account tax free, which fully maximizes your accumulated assets for good. In many cases, naming Holy Trinity as the beneficiary can be completed online and does not require you to edit an existing will.

Combining a retirement account with life insurance

One method for maximizing legacies to both Holy Trinity and your heirs is to combine the former strategies: after naming Holy Trinity as the beneficiary of your retirement account, you can use your retirement income to pay the premiums on a life insurance policy for your heirs. Upon your death, your heirs will receive the proceeds from your life insurance policy, while Holy Trinity will receive the full value of your retirement account, tax free.

Several additional legacy strategies

● If you hold any highly appreciated stocks or bonds, you likely know that these are subject to capital gains taxes upon sale. Instead of forfeiting significant legacy potential to taxes, stocks or bonds can be transferred directly to Holy Trinity, tax free, and the donor is eligible for a charitable donation in the amount of the value of the stocks or bonds as of the date of transfer.

● For those 70 1⁄2 and older, the Qualified Charitable Distribution is now permanent, which means donors are able to transfer money directly from an IRA to Holy Trinity without paying income taxon the amount transferred. While you would not benefit from a tax deduction, the amount given counts towards your RequiredMinimum Distribution (RMD) and reduces your taxable income for the year the gift is made.

● A Charitable Gift Annuity and a Charitable Remainder Trust are two unique ways of leaving a legacy to Holy Trinity. In both cases, you can receive an income stream from the gift for the rest of your life, and upon your death Holy Trinity will receive the remainder of the asset.

● A Charitable Lead Trust is the inverse; in this case, the donor creates a trust from which Holy Trinity receives payments on a fixed schedule, and upon your death, the remaining assets pass to a non-charitable beneficiary, such as a family member.

● Bequeathing real estate is another common type of planned giving. In most circumstances, the church will choose to sell the property after your death rather than maintain and manage it.

Don't rely on a will to leave your legacy

Wills are important, and every person should create one with the advice of a trusted attorney; however, the only portion of your estate handled by the will is what remains after all other obligations and contracts (including retirement accounts) have been paid out.

Even if you leave a significant percentage of your estate toHoly Trinity in a will, the actual amount could be substantially less than you intended, especially following probate. Each of the strategies listed above allows you to leave a legacy on your terms.