Planned Giving

For this generation, and the next, and the next …

This page covers:
• Cash or Appreciated Property
• Wills & Bequests
• Life Insurance
• Deferred Gifts
•Gifts of Income

Think, consult, select a plan

Many of us who would like to give and yet feel we cannot, may be surprised at the opportunity presented by planned giving. Others may find the right plan enables them to make a larger gift because of the benefits of tax savings and income provided by some plans.

A specialist from the Preservation Trust will contact you with any additional information you might need and help you set up a plan. Or you may wish to consult your attorney or tax advisor.

All contributions are tax deductible and should be made to “Cathedral Preservation Trust”.

The Concept of Planned Giving

Planned gifts to the Cathedral Preservation Trust will preserve the art, beauty and history of the Cathedral of Mary Our Queen for the next generation, and the next, and the next.

To meet these costs, a Preservation Trust exists to receive contributions specifically for major maintenance. Like other institutions from universities to hospitals, The Cathedral needs an endowment fund large enough to generate enough interest to pay the extraordinary cost of maintenance and replacement.

The Fund Needs Your Help To Grow

The Preservation Trust must grow to provide for the ongoing maintenance and preservation of the Cathedral complex and grounds to retain the religious, historic and cultural value for posterity.

Ways of Giving

The following is intended to make you aware of some of the available methods of planned giving. We encourage you to consult your attorney or tax advisor about the plan in which you are interested to determine the exact deductions and benefits you gain from your gift, and the legal principles that apply to your situation. Or, if you prefer, you may call the Cathedral of Mary Our Queen, and we will provide a specialist to help you.

Gifts of Cash or Appreciated Property

Current gifts of cash or appropriated property, stock or other assets such as art are a tax planning option available to taxpayers who itemize deductions. The property must have been held for more than a year.

Appreciated property contributions may be more beneficial than cash contributions since the full value of the assets is usually deductible and you do not have to pay a capital gains tax.

You may take a full deduction on tangible property such as works of art, rare books or coin collections only if the use of the contributed property is related to the exempt purposes of The Cathedral.

Wills & Bequests
Please also read:
Useful Information for Making a Bequest to the Cathedral of Mary Our Queen Preservation Trust.

Donations made through a will can offer sizable savings and can materially reduce estate taxes which can go as high as 60%. It is very important to remember in estate planning that all charitable bequests in a will are deductible in full since the estate tax charitable deduction is unlimited.

FUNDING A CHARITABLE GIFT WITH QUALIFIED RETIREMENT PLAN BENEFITS OFFERS IMPORTANT INCOME TAX AND ESTATE TAX BENEFITS.

Today, qualified retirement plan benefits – 401ks IRAs and others – represent a major portion of the average person’s estate. It is vitally important to be aware that retirement plan benefits in your estate are subject to federal estate taxes that can go as high as 60% and can cause a substantial income liability to the estate or the ultimate recipient.

Federal tax law permits you to defer income tax payments on retirement plan contributions given certain income restrictions. Therefore, all tax-deferred assets left in the retirement plan at death will be taxable to the estate or beneficiary. However, naming a charity – such as The Cathedral – as beneficiary of all or a portion of your retirement fund produces double benefits. The value of the charitable gift is fully deductible for estate tax purposes. And, because the charity is tax exempt, there is no income tax liability for the charity of the giver in the amount of the gift.

Gifts of Life Insurance

Gifts of life insurance policies can result in an immediate charitable deduction. If the policy is paid up, the deduction is the amount of the replacement value (but not more than your cost basis). If premiums are still being paid, the deduction will approximate the cash surrender value. These contributions are particularly attractive when your family is grown and insurance may be of less importance. Often, individuals find they have more life insurance than actually needed. In addition, the proceeds (coverage amount) of a donated policy will not be included in your estate.

Deferred Gifts

You may be able to take a substantial charitable deduction for a gift that will not be received by The Cathedral until a future date. This is accomplished by one of two types of charitable remainder trusts – an annuity trust or a unitrust.

You create a charitable remainder annuity trust or a unitrust and its assets consist only of the funds or property you contribute. Second, you set the amount of income to be received rather than receiving a pro rata share as in the pooled income fund.

When cash, securities, or real property are contributed, you continue receiving income from the contribution – usually for life plus the lifetime of your spouse, or of another beneficiary if you choose. At the end of that time, the contribution belongs to the institution.

You take a deduction in the year of the contribution for its total value less the value of the income you expect to receive. The amount of the deduction is determined from tables based upon life expectancy and the expected investment yield.

You may also make a deferred gift by donating a remainder interest in you home, vacation retreat, or farm while you and your spouse continue to own the property during the lifetime.

Gifts of Income

Gifts of income can produce significant income tax and estate planning benefits. Income gifts are made by placing assets in trust for a period of years, with a specified amount being paid to the institution each year. At the end of the period, the trust can provide that the property will go to a family member or other non-charitable beneficiary. These trusts are called charitable lead trusts.The income interest may be either a guaranteed annuity or a fixed percentage of the value of the trust determined annually.