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Tools for Estate Planning

The following tools are listed, because they can serve you in accomplishing your estate-plan goals. After each explanation, there is a link to some examples that further describe the benefits of each option. Those examples are provided for general information only and are not provided as legal or financial-planning advice. Your attorney or financial planner can offer specific direction that fits your personal situation and is consistent with the current laws.

Appreciated Assets
Give this gift to KML and escape the capital gain tax while receiving an income tax deduction. You also remove that asset from your estate, thereby reducing your potential estate tax burden. 

Beneficiary Designations
This simple option allows you to designate the recipient(s) of your various funds, bank accounts or life insurance benefits without the cost or delays of probate.

Life Insurance
Policies can be purchased that name KML as a beneficiary. You donate the yearly premiums to maintain a small or large policy. The gift of the premiums is much smaller than the possible gift after death. You would be surprised how big a gift can be given for a small yearly premium! 

Stocks & Mutual Funds
These types of transactions are easy to make. It may offer even more benefits to you and to KML than a cash gift. In some cases, making a charitable contribution using an appreciated asset can help you accomplish your personal goals as well as exercise your charitable spirit. A transaction can be done electronically directly to KML. 

Charitable Gift Annuities
Charitable Gift Annuities (CGA) can be established to help you fulfill the goal of receiving steady income throughout your life, and also making a substantial gift to your church or KML. It remains a popular giving tool that has long appealed to donors. Through a gift annuity, donors give cash or stock to a ministry in return for lifetime fixed income payments that are based on age--the older the donor, the larger the payment. Even after lifetime payments to donors, a ministry like KML is still left with a good portion of the original gift for expansion of the ministry. 

Charitable Remainder Trust (CRT)
Need a security blanket? CRTs work particularly well with appreciating assets, and can be used with stock in a family owned business or real estate. No income tax is imposed on the remaining value of the trust, and you get a current income tax deduction. As a result, you obtain the tax benefits while postponing the date when the charity receives the gift. 

Charitable Lead Trust (CLT)
A CLT is the flip side of a Charitable Remainder Trust. Give the charity the use of the asset and the right to the income generated for a period of years. Then, the asset can revert back to you, or go to whomever you choose. This can be income-producing stocks and bonds or other valuable items. You get a current income tax deduction for the value given to the charity (but the trust pays income tax on its income).

 

To discuss a planned gift to KML, contact your KML Estate Plan and Deferred Gift Counselor, 
Paul Snamiska, at 262-677-4051 x1116 or paul.snamiska@kmlhs.org.

The information that is provided on this site is for educational purposes only. Consult your personal tax consultant, attorney, or financial planner for specifics that apply to your personal situation.