Do you own a cabin, farm or other recreational property? Are you concerned how this property will affect your estate plan?
Mt. Pleasant Lutheran Church Endowment Fund can help you identify charitable giving options that complement your estate planning goals. Through a giving option called “life estate reserved,” you can continue to use or rent the property during your lifetime, receive a charitable income tax deduction and ultimately support the Mt. Pleasant Endowment Fund all at the same time.
Through life estate reserved, you deed the property to the InFaith Community Foundation for the benefit of the Mt Pleasant Lutheran Church Endowment Fund. The deed states you, the donor, retain the right to use the property during your lifetime. You also enter into a life estate agreement with the Foundation that spells out responsibilities for the property. Upon your death, the Foundation takes immediate possession of the property and it does not go through probate. The Foundation then sells the property and the net proceeds are directed to The Mt. Pleasant Lutheran Church Endowment Fund. Gift Minimum: $200,000.
BENEFITS OF GIVING
Flexibility. During your lifetime you may use the property for personal use or rent the property to generate income. If you determine that you no longer wish to use the property, you can: 1) arrange for a joint sale of the property with the Foundation and receive a portion of proceeds equal to the value of your remaining life estate interest; or 2) deed your remaining life estate interest to the Foundation and receive an additional income tax deduction for that gift.
Reduce taxes. You receive an immediate charitable income tax deduction for a portion of the appraised value. For federal income tax purposes, you may deduct up to 30% of your adjusted gross income and any unused charitable deductions can be carried over for an additional five years.
Lower estate taxes. By making a life estate reserved gift, you’ll reduce the size of your estate and possibly your tax liability.
Avoid probate. The property given is not subject to probate.
Ease of transfer. The Foundation will coordinate the sale of the property upon your death. The personal representative of your estate will not need to deal with selling the property.
SUPPORT YOUR FAVORITE CHARITIES OR CAUSES
Proceeds from the sale of your property are directed to the Mt. Pleasant Lutheran Church Endowment Fund at the Foundation, where it’s invested and managed to provide ongoing support to our church.
FOR MORE INFORMATION about the Mt. Pleasant Lutheran Church Endowment Fund, please contact: MPLC member and Endowment Fund Treasurer, Dave Zuelke at firstname.lastname@example.org or call the church office at 262-634-6704; or MPLC Member and Financial Advisor, Ryan VanDeLoo at 414-688-7265 or email email@example.com