MtM Financial Advisor, Alyssa Young, wrote this column for publication in the June 2022 Holy Cross Lutheran Church newsletter.
Leaving a Legacy
Discipleship Tools
There are countless ways to support your church during your lifetime–and countless ways to support it after your passing, too. With a little preparation, it is easy to leave a legacy for your church family. Consider incorporating any of these ideas into your estate plan.
Beneficiary Designation
Your church can be named one of your beneficiaries on investment accounts or life insurance policies. Beneficiary designations allow you to pass your assets directly to people or organizations efficiently, avoiding the often lengthy probate process. You can divide your account balance among multiple people or entities in the proportions you choose. For example, you can give 40 percent to your son, 40 percent to your daughter and the remaining 20 percent to your church. Annuities, individual retirement accounts and brokerage accounts all can have beneficiaries, and they can be changed at any time. Be sure yours are identified as you wish.
The rules your beneficiaries must follow for paying taxes and taking distributions from the accounts vary by account type. Your church, as a non-profit entity, will enjoy tax benefits that individuals cannot.
Transfer on Death Status
You also can name beneficiaries to inherit the money in your bank accounts when you die. Accounts that function this way have what’s called “transfer on death” status so that they also avoid the probate process.
Last Will & Testament
Everyone should have a will that, among other very important determinations, dictates what should happen to your property when you die (after any outstanding debts are paid). Your will distributes the assets you own that do not have beneficiaries named. This can include your home, vehicles and other valuable belongings that could be sold and the proceeds shared among the heirs you identify in the legal document. Your church could be one of those recipients. It’s important to work with a trusted, experienced estate planning attorney to ensure your will is comprehensive and enforceable so that your wishes will be carried out. When a non-profit is named in your will, your executor will need to complete a more detailed probate process and should seek expert guidance.
Life Insurance
One creative way to leave a large gift to your church upon your passing is to purchase a life insurance policy with the church as its beneficiary. You would pay a premium during your lifetime that would provide a large death benefit to the church when you die. If you have a specific vision for how the money is used, be sure to communicate it in writing.
To ensure your estate plan reflects your wishes:
- Work with your financial advisor to check and update your beneficiary designations.
- Consult an estate planning attorney to ensure that your will accomplishes your goals.
- Ask your life insurance agent to verify the beneficiaries of your policies.
Alyssa Young, a Holy Cross member for more than 30 years, is a financial advisor at MtM Financial Group in Lower Nazareth Township. You can reach her at 610-746-7007 or by email at [email protected].
Securities offered through The Strategic Financial Alliance Inc. (SFA), Member FINRA, SIPC. Advisory and tax services offered through MtM Financial Group, LLC which is otherwise unaffiliated with SFA. 4505 Hanoverville Road, Bethlehem, PA 18020. SFA does not provide tax or legal advice. Supervising office 888-447-2444.