Manresa Planned Giving Guide

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A guide that explains all the options for gifts including annuities and language for wills.

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  • A guide for thosewho wish to give a planned gift.

  • As a member of Manresas community, you may have picked up this guide with a desire to help Manresa continue its mission, but are not quite sure how. Planned gifts are a wonderful way to ensure Manresas

    future financial viability. You need not neglect your family when making a gift to a charitable organization. Nor do you need to be wealthy or sacrifice your lifestyle. You can keep your assets and actually earn additional income with a properly structured gift. Your gift will benefit Manresa, but your true legacy will be the lessons your loved ones learn about your values and priorities as embodied in Manresas mission to be a Fire Thata Kindles Other Fires.

    Do you have questions about how to leave your own legacy? There are a wide variety of options available to you for your gift, many of which in-clude financial and tax benefits such as:

    Immediateincometaxdeduction Lifetimeincomeatanattractiverateofreturn Reductionoffederalandstateestatetaxes Eliminationorreductionofthecapitalgainstax, if appreciated assets are donated

    This guide is designed to get you started thinking about your options before your discussion with the appropriate professional. A properly drawn will isoneofthemost importantpapersyouwilleversign. It isadocu-ment that will speak your mind and heart, and ensure that your wishes for your loved ones and estate (regardless of its size) are realized. This guide isforyourinformationonplannedgivingopportunities.Itisnotintendedas legal or tax advice. You should consult with your attorney, tax advisor, financial advisor or insurance counselor in planning these transactions.

    THE MISSION OF MANRESA: To help men and women grow spiritually through prayer, reflection, guidance, and teaching according to the Ignatian tradition

  • GIFTSTHATPROVIDEINCOMETOYOU

    A Charitable Remainder Trust (CRT) is an irrevocable trust into which you can transfer assetssuch as investment propertythat have appreciated in value well beyond their original cost. The CRT can provide income that will last the rest of your life (and your spouse) or for a specified number of years. When the income has been fully distributed under the terms of your trust, Manresa will receive the assets remaining in the trust. The CRT can provide income, estate and capital gains tax benefits, and a lasting gift to Manresa.

    A Charitable Remainder Annuity Trust pays a fixed income based on the percentage you choose, and the value of the assets when the trust is established. For example, if you establish a 7% two-life annuity trust with assets of $100,000, you and your spouse would receive $7,000 each year for the rest of your lives.

    A Deferred Gift Annuity is a gift annuity where you defer the receipt of income until a later date, such as retirement. This offers several benefits: your annual income will be higher when the payments begin, and the contribution secures a larger current income tax charitable deduction.

    A Charitable Gift Annuity, like the charitable remainder annuity trust, pays you a fixed dollar amount. The amount is determined at the time of the contribution and is based on your age and, if you have designated another beneficiary, on his/her age as well. For senior citizens, annuity rates may be 8% or 9%, or even higher. Part of the annuity payment is tax-free, and the initial charitable deduction offers substantial income tax savings.

    Helen,age80,contributes$10,000toManresainexchangeforagiftannuity.Herguaranteedrate,assignedbytheAmericanCouncilofGiftAnnuitiesbasedonherage,is7.5%.Herannualincomewillbe$750eachyearfortherestofherlife.Helenreceivesthisincome,inpartandwithsome limits, tax-free, and also receives a charitable tax deduction for a portion of her gift.*

    A gift annuity is particularly suited for those aged 65 or above. Those who are younger should consider a Deferred Gift Annuity.

    HOWACHARITABLEREMAINDERTRUSTWORKS

    DONOR CHARITABLEREMAINDERTRUST MANRESA

  • GIFTSTHATALLOWYOUTOKEEPYOURASSETS

    A Retained Life Agreement allows you to continue to live in property you own throughout your life while receiving a substantial tax savings today. You would simply retain the use of your home, vacation residence, commercial property or farm and deed the remainder interest in the property to Manresa Jesuit Retreat House so that Manresa will own the property after you pass away. The deduction could save you substantially on your current income taxes, and allow you to enjoy your residence or vacation home throughout your lifetime.

    A Charitable Lead Trust is the reverse of the charitable remainder trust and functions as a temporary gift, or loan, to the Manresa Jesuit Retreat House. That is, instead of paying income to you, the trust pays income to Manresa for a term of years, before the principal reverts back to you, a family member, or another beneficiary. A lead trust can greatly reduce estate taxes, allowing you to make a significant gift to the Manresa and ultimately pass more to your heirs.

    George and Paula, both age 65, wish to give Manresa a gift, but with only modest assets, are not sure how to do so. They decide to deed their primary residence to Manresa, with the proviso that they would be able to live thereuntiltheendofbothoftheirlives.Sincethey want to leave a gift for their children, as well, George takes out a life insurance policy for the value of the home. At his passing, the children will receive the proceeds from the insurance,. Manresa will receive the property after the last spouse passes.*

    Marge is 55 years old and wants to make asignificantgifttoManresa.Shedecidestopurchase a whole life insurance policy in theamountof$100,000,namingManresaasowner and beneficiary, with premium costs of$3,000peryear.Margeisabletotakeatax deduction equal to her premium cost of$3000peryear.Herpolicywaswrittentobepaid-upin10years.So,foronly$30,000,Margewillcontribute$100,000toManresaupon her death.*

    *These examples are illustrations only, not actual case studies.

  • GIFTSWITHOTHERTAXBENEFITS

    Appreciated Securities may be contributed directly to Manresa by transferring the actual stock certificate or through an account transfer arranged by your Financial Advisor. In either case, you avoid the tax on any potential gain and receive a charitable income deduction.

    An IRA owner who is at least age 70 may make a direct charitable contribution of the required distributions directly to Manresa, avoiding income tax on the amount and receiving a charitable deduction. Manresa can also be added as a beneficiary to your 401k, IRA, Roth IRA, TSA, Annuity or 403b plan. Manresa can be one of several beneficiaries or the sole beneficiary.

    Wealth Replacement Trust is an irrevocable life insurance trust that holds life insurance on the life of the donor in the amount of the charitable gift. When a gift is given to Manresa (a charitable tax deduction), it reduces the assets to be handed down to the heirs. An insurance policy is purchased equal to the amount of the gift. The donor pays the premiums. Upon the donors death, the trust collects from the insurance company, in effect replacing the amount of the gift. The trust distributes the cash amount to the beneficiaries free of income and estate taxes. This way the heirs still receive their fullinheritance in the form of cash rather than an asset that may not be liquid.

    Insurance offers a variety of possibilities for gifting Manresa. You may have an old policy that you no longer need. If you assign the policy to Manresa (transferring ownership) you are entitled to an income tax charitable contribution deduction. You can also simply designate Manresa as the beneficiary and your estate will receive a Charitable Gift Estate Tax deduction when Manresa receives the policy proceeds. Manresa can be designated as a contingent or a secondary beneficiary.

    Dennis,age40,purchased$500worthofstockinABCCompany15yearsago.Itscurrentvalueis$2000.DennisgivesthestockdirectlytoManresa,allowinghimtoclaima$2000CharitableDeductiononhisFederalandStateIncometaxreturns.Dependingonhistaxbracket,hecouldsaveasmuchas$800.HealsosavestheCapitalGainsTaxthatwouldbedueifhesoldthestockhimself.ThisallowsDennistogiveasizablegifttoManresathatcosthimonly$500originally.

    On the other hand, if Dennis had stock that has decreased in value, he would sell the stock, take the loss, offsetting the gains from other investments and give the cashtoManresa.Hewouldnotonlyreceivethetaxadvantageforthecharitablegift, but also for the capital loss.*

    One of the most overlooked areas of planning is the Federal Estate Tax. Everything you own may be subject to this tax. To cut down on your estate tax liability, consider the charitable deduction, which allows you to deduct every dollar you give to charity through an outright bequest. In addition, property placed in a charitable trust generally will not be subject to the Federal Estate Tax when the beneficiary dies.

    ANOTEABOUTESTATETAXES

  • GiftSummary

    Gifts you make with Manresa

    Your Goal

    Supplement income with fixed annual payments.

    Reduce gift and estate taxes on assets passing to heirs.

    Create a hedge against inflation over the long term.

    Secure a fixed and often increased income.

    Give your personal residence or farm, but continue to live there.

    Your Gift

    Charitable Gift Annuity

    Charitable Lead Trust

    Charitable Remainder Unitrust

    Charitable Remainder Annuity Trust

    Retained Life Estate

    Gifts after your lifetime

    Avoid capital gains tax on the sale of a home or other real estate.

    Make a quick and easy gift of appreciated property. Make a quick and easy gift of cash.

    Make a large gift at little or no cost to yourself.

    Avoid the twofold taxation on retirement plan assets.

    Defer a gift until after your lifetime.

    Life Insurance Gift

    Retirement Plan Gift

    Bequest in Will or Living Trust

    Gifts you make now Real Estate Gift

    Outright Gift of Appreciated Property

    Outright Gift of Cash

    Benefit:

    Char

    itabl

    e G

    ift

    Annu

    ity

    Char

    itabl

    e Le

    ad

    Trus

    t

    Char

    itabl

    e Re

    mai

    nder

    Uni

    trust

    Char

    itabl

    e Re

    mai

    nder

    Ann

    uity

    Tr

    ust

    Reta

    ined

    Life

    Est

    ate

    Bequ

    est i

    n W

    ill o

    r Li

    ving

    Tru

    st

    Retir

    emen

    t Pla

    n G

    ift

    Life

    Insu

    ranc

    e G

    ift

    Real

    Est

    ate

    Gift

    Out

    right

    Gift

    of

    Appr

    ecia

    ted

    Prop

    erty

    Out

    right

    Gift

    of C

    ash

    Reduce income taxes Yes Yes Yes Yes For heirs Yes Yes Yes

    Reduce estate taxes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

    Reduce capital gains taxes Yes Yes Yes Yes Yes Yes

    Stable income Yes Variable Yes Higher payout on low dividends Yes Yes Yes

    Assets:

    $100,000 or more Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

    Under $100,000 Yes Yes Yes Yes Yes Yes Yes Yes

    Cash Yes Yes Yes Yes Yes Yes

    Appreciated securities Yes Yes Yes Yes Yes Yes

    Real estate Yes Yes Yes Yes Yes Yes Personal or vacation residence Yes Yes Yes Yes

    Art, antiques, collectibles Yes Yes

  • FOR MORE INFORMATION

    Your name

    Second name

    Address

    City State Zip

    Telephone Email Best time to call

    I am interested in more information. (Please check all that apply) I would like information about how to receive income and make a gift at the same time. I would like information about how to pass assets to heirs and make a gift at the same time. I would like information about how to name Manresa Jesuit Retreat House in my estate plans. I wouldlike to speak to someone, without obligation, about creative giving options. I would like an illustration for a charitable gift annuity. Gift amount to be illustrated: $

    (Please note that the minimum gift amount is $10,000)

    For your records, I/we have enclosed the relevant portion of my/our estate plan that pertains to my/our gift

    through: My will or living trust Insurance policy Trust arrangement My retirement plan assets Other

    I/we approve public recognition of my/our gift. I/we choose NOT to be publicly recognized for this gift.

    THIS INFORMATION WILL BE KEPT IN THE STRICTEST CONFIDENCE.

    Please complete and return to :RitaTinetti,DevelopmentManager

    1390QuartonBloomfieldHills,MI48301

    rtinetti@manresa-sj.org248-644-4933ext.15

  • FOUR EASY STEPS TO REMEMBER MANRESA IN YOUR WILL

    Determine whether youd like to make a gift of a specific amount or if you would like to leave a percentage, allowing your gift to remain in proportion to your estate size.

    Decide if you want to direct your gift to help particular projects or leave your gift unrestricted, allowing it to be used for our most pressing needs. If you choose to restrict your gift, please contact us so we can ensure that your intent can be fulfilled.

    See your attorney to include your gift in your will or revocable living trust. The bequestlanguage below will be helpful to take with you.

    If you desire, please notify us of your intention so we can properly thank you and keep you

    informed of ongoing activities. We are happy to adhere to your wishes regarding anonymity.

    A charitable bequest is a distribution from your estate (through your Trust or Last Will and Testament) to a charitable organization, such as Manresa Jesuit Retreat House. The bequest may be a specific monetary amount or a percentage of your estate or trust. Sometimes other assets are gifted, such as land, stocks, bonds or automobiles.

    While we recommend that you carefully review the terms of your proposed will and/or trust with a professional trained in handling trusts and estates before making decisions regarding bequests that you want to make, the following provides you with an example of common language that could be used to make a charitable bequest to Manresa in a will or trust:

    I give, devise, and bequeath to MANRESA JESUIT RETREAT HOUSE of BLOOMFIELD HILLS, MI, or its successor, the sum of $___________ (or a description of the specific asset), to be used for such charitable purpose(s) as MANRESA JESUIT RETREAT HOUSE, or its successor, may decide in its discretion.

    1.

    2.3.

    4.

    RitaTinetti,DevelopmentManager 248-644-4933ext.15

    rtinetti@manresa-sj.org

    Pleaseletusknowyourintentionsregardingplannedgiving.Wewouldliketohonorthose of you who have already made arrangements for a planned gift to Manresa and help those who would like to, but have not yet, made arrangements.

    The Development Office is here to serve you.