Five Tips to Consider for Your Estate Planning

The third week of October is “National Estate Planning Awareness Week.” At this time of year, many individuals will be looking to save money by reducing their tax liability while also contributing to nonprofit organizations, like Cross Catholic Outreach.

To help, we’ve put together a few estate planning options to consider:

#1: Create a Will or Trust

Have you made a will or created a plan to distribute your assets when you die? If not, then the laws of the state where you reside will dictate who receives your money and property. This may differ from your intentions and interests.

The good news: Cross Catholic produces a guide to help you plan your will or trust. Contact us for a free copy

#2: Establish a Charitable Gift Annuity

Could you use a charitable deduction this year and additional income throughout your retirement years? A charitable gift annuity is a secure source of steady funds. Through a gift of cash or appreciated assets, fixed payments are made based upon you and your spouse’s ages for the rest of your lives. Many of our donors enjoy peace of mind with a charitable gift annuity.

#3: Develop a Charitable Lead Trust

Are you looking for a tax efficient way to transfer your assets to your family? With a charitable lead trust you will receive a gift tax deduction for payments to Cross over a number of years. Then, your family will receive the trust assets without paying additional gift taxes. A charitable lead trust is a great way to help your family.

#4: Designate Cross Catholic Outreach as a Beneficiary

Have you designated beneficiaries for all of your investment and retirement accounts? Most IRAs, 401(k)s and pensions allow for the designation of beneficiaries. And most of these have tax liabilities if passed to your family. Cross Catholic, however, is tax-exempt charity and can receive your unused retirement assets with no tax due. You likely have other assets and ways to provide for your family without negative tax consequences.

#5: Make a Gift to Cross Catholic Outreach

Are you taking advantage of annual exclusion gifts and the lifetime gift exemption? You can reduce your future estate taxes by annually transferring some assets from your estate to your family members. And you can make gifts over your lifetime of more than $11.4 million without owing any gift tax.

Cross Catholic Outreach’s mission is to mobilize the global Catholic Church to transform the poor and their communities materially and spiritually for the glory of Jesus Christ. For further information about these and other end of year financial planning options, please contact our Office of Gift Planning.