By John Tetzloff, CLU, FICF, LUTCF Advanced Case Specialist, Catholic United Financial
There are many ways we Catholics can be generous. Whether we are making gifts, assisting others or providing a better life for our heirs, generosity can go a long way in furthering good in our lives. We can be generous with our time and talents. We can be generous with our treasure.
In the past, people could receive a tax advantage simply by leaving a certain percentage or dollar amount of their estate to their favorite charities at death. Because of the increase in estate tax exempt amounts, many have lost the advantage of leaving assets to charity through their will or trust. Also, when we leave those assets until death, we are trusting those assets will still be there when we die, but there’s no guarantee that will be true. Some estates could be exhausted by rising medical costs, funeral expenses and assisted living bills.
Giving back to our Catholic charities is an excellent way to thank God for the gifts He has blessed us with throughout our lives. While this is the most important reason to give of our treasure, the tax advantages that proper charitable giving can provide should be considered by everyone who tithes or donates each year. There are options available that can provide gifts to charities as well as maximize tax advantages for us.
I encourage people to put charitable giving plans in place while they’re still alive. Many of the charitable strategies we implement are designed to receive tax advantages now. Even if someone wishes to create a legacy gift (those gifts that are distributed upon death), they can better enjoy those tax advantages and guarantee the gift will be made by putting a plan in place today.
Let’s not forget those closest to us. Being generous to our personal causes and charities allows us to better provide for our heirs and families. This generosity of proper communication with your heirs will increase their understanding of what you want for your estate and giving. It also grants them piece of mind regarding:
• Their inheritance
• What to expect after your passing
• What is expected of them
For example, if we use IRA distributions to provide for our charities, we can not only create current tax advantages, but also free up non-taxable assets for our heirs. Knowing which assets to use to balance the charitable and personal inheritance as well as constructing a proper all-around plan will provide you with a better understanding of where and how the money goes and, ultimately, save money, time and frustration for your heirs.
If you need assistance with these topics, Catholic United Financial has licensed representatives that can help.
John Tetzloff, CLU, FICF, LUTCF, has more than 25 years of experience in the financial industry. He is the Catholic United Financial Advanced Case Specialist and Trainer, and leads financial education workshops every week in parishes and community centers throughout the upper Midwest. Estate planning assistance is offered for free by Catholic United Financial. You can reach John by emailing radio@catholic
united.org, or connecting on social media: facebook.com/CatholicUnitedJohnTetzloff, or twitter.com/johntetzloff.
Learn more about Catholic United Financial at www.catholicunitedfinancial.org.