A Legacy of Generosity
Funding for Mission through
Wills and Living Trusts

The Coxes created a will and established a trust to provide for their children and more. "It's important to us to continue to support the work of the church..." See their story:

Wills and living trusts are popular methods to ensure your assets are distributed in accordance with your wishes and values in the future. Many find this a practical way to make a substantial charitable gift that will further the mission of the church for generations. Without a will, living trust, or other legal arrangement, your assets would be distributed through probate according to state laws, despite what you may have wished. To ensure assets are distributed in a way that reflects personal values, everyone should consider establishing a will or living trust.

Giving through a Will

Assets left to others through a will are generally distributed through probate court. Charitable bequests in a will can include giving a specific sum of money, a specific property, a percentage of assets in the will, or all or a portion of what is left after providing for loved ones. For someone who already has a will, charitable bequests can be added through a codicil. 

Giving through a Living Trust

When sudden widowhood left Bert Willis without a valid will, a living trust and investment information gave her financial security for today and a legacy for the future. See her story:

 

Living trusts have become much more common in recent years. They enable you to control the distribution of your estate and can be changed or revoked at any time by the creator(s).

Using a living trust reduces costs and delays associated with the probate process because assets are transferred immediately on the creator’s death to a successor trustee for action or distribution according to the instructions established by the creator(s) of the trust. Only assets retitled into the trust can be distributed in this way.

Charitable bequests in a living trust can include giving a specific sum of money, a specific property, a percentage of trust assets, or all or a portion of what is left after providing for loved ones.

Tax Benefits of Living Trusts

Certain trust strategies are designed to serve specific estate needs. One of the most widely used is a living trust with an A-B provision, which enables you to leave as much as double the personal exemption amount to heirs free of estate taxes.

When an A-B trust is implemented, two subsequent trusts are created on the death of one’s spouse. Assets will be allocated between the surviving spouse’s trust (A trust) and the decedent’s trust (B trust). This creates two taxable entities, each entitled to a personal exemption.

The surviving spouse would retain full control of her/his trust and can receive income from the deceased spouse’s trust. They can withdraw principal when necessary for health, support, or maintenance. When the surviving spouse dies, assets of both trusts pass directly to heirs and avoid probate. If each trust contains less than the exemption amount, these assets will also be free of federal estate taxes.

A representative from Estate and Financial Planning is available to work with you. Everything is confidential. There is no obligation and nothing to buy. Contact us at efp@CofChrist.org, or call 1-800-884-7526.

This information is provided as educational material and not intended as legal or financial advice. Because each situation is different, individuals are advised to obtain legal and tax counsel that suits their needs. The examples contained herein are accurate as of the date of publication and are based on the most recent tax legislation.