Please read the following for more information about how you can easily and simply create a financial legacy or planned gift for Unity Church of Clearwater (UCC). There are many types of gifts to consider in estate planning.

 

Bequests
Bequests can be by Will or Trust. Like other sorts of gifts, bequests can be given for general or specific purposes and uses.

• A Bequest for General Purposes: This type of bequest is especially appreciated because the Board of Directors can see that it is applied most appropriately.
   
• A Bequest for Specific Purposes: Many people want to give to something special, a type of gift sometimes called a "restricted bequest." Restrictions are often designed to benefit a particular program at UCC.

Restricted / Unrestricted Bequests
Both restricted and unrestricted bequests are made in the following ways:

• Specific Bequest: Give a specific asset or collection of assets in the form of cash, securities, or other property. Retirement plan benefits, IRAs, savings bonds, and other items known as "income with respect to a decedent" (IRD) are particularly tax effective gifts to charity. You may designate an amount or a percentage of the property.
   
• Percentage of your Estate: Give a percentage of your total estate.
   
• Residuary Bequest: Give all or a percentage of what remains of your estate after all specific bequests have been satisfied and debts and expenses have been paid. You may specify that charitable gifts be fulfilled first with IRD assets to the extent needed to reduce your tentative estate tax.
   
• Contingent Bequest: Give all or a portion of your estate in the event that a named beneficiary is not alive at the time of your transition.  This type of bequest can avoid costly litigation or prevent property from reverting to the state for lack of heirs.

Bequest Language
Please consult an attorney to assist you in drafting a will or codicil that will achieve your charitable estate plans.

Beneficiary Changes
Gifts can be in the form of a beneficiary designation.

Types of accounts requiring Beneficiary Designations:

• Life Insurance Policies
• Deferred Annuities
• IRSs
• 401(k)
• 403(b)
• Etc.

Retirement Plans
Many individuals today have large qualified retirement plans such as an IRA, 401(k), or Keogh plan. These assets have been growing tax-free for years. Once the owner begins to receive payments from the qualified plans, the distributions are taxed. At the time of transition (death), the assets remaining in these plans are also included in the owner's taxable estate. A retirement plan may be an excellent source of funds for making a gift to Unity Church of Clearwater.

If you name someone other than your spouse as the beneficiary of your retirement plan at your passsing, the assets may be subject to both income and estate taxes. If these plans are left to charity, however, the full amount will generally be received and used according to your wishes. The full amount is still included in your taxable estate but is fully deductible as a charitable gift. Other assets can then be left to family members that would not generate income taxes.

Life Insurance
Some folks no longer have use for their life insurance that was purchased years ago to provide for children or other family members. If you are in this situation, you may want to name Unity Church of Clearwater as a beneficiary or contingent beneficiary. Any benefit the UCC receives from your insurance will be excluded from your taxable estate. If you name UCC as irrevocable beneficiary and owner of your life insurance policy, you are eligible for an immediate income tax charitable deduction equivalent to the policy's cash surrender value or replacement value. If additional premium payments are due, you can deduct those payments as charitable contributions.

Pay-on-Death accounts

• Bank accounts (saving, checking)
• Certificates of Deposit (CDs)

Any bank account can be enhanced to include "pay-on-death" instructions. You may want to name the Unity Church of Clearwater as the organization to receive the money in an account after you no longer require it.

Transfer-on-Death (at the time of transition)

• Mutual Funds
• Brokerage Accounts

Any brokerage account can be enhanced to include "transfer-on-death" instructions. You may want to name the Unity Church of Clearwater as the organization to receive the securities in an account after you no longer require them.