Wills/Bequests/Annuities

What do you want your legacy to be?
We all want our lives to matter. We want to be remembered as Christ’s servants. When you give a legacy gift to the Kentucky United Methodist Children’s Homes, you will change the lives of countless young people who have experienced abuse or neglect. And that change will impact their future families and communities—a generational ripple effect of wholeness and healing.

To learn more about legacy gifts, contact
Melinda Ryles-Smith
Vice President for Development
melinda@kyumh.org
(859) 523-3001

Life Annuities and beneficiary designations:

Insurance policies (new or existing) may be given to The Kentucky United Methodist Children's Homes. You may name the Homes as a beneficiary of an existing policy, either entirely or in part. Additionally, The Kentucky United Methodist Children's Homes may be named as a beneficiary of a retirement plan (e.g., IRA, 401k, profit-sharing, etc.) or annuity contract.

Charitable Remainder Trust:

This trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to whomever you wish to receive income. You may take a charitable income tax deduction and may reduce any capital gains tax if the gift is of appreciated property. At the end of the trust term, the charity receives whatever amount is left in the trust.

Charitable Remainder Uni-Trusts (CRUT - paying a fixed percentage) may provide some flexibility in the distribution of income, and therefore can be helpful in retirement planning, while Charitable Remainder Annuity Trusts (CRAT - paying a fixed dollar amount) are more rigid and restrictive.Suppose you would like a life income determined by a percentage of the fair market value of a trust you establish with assets you choose. A fixed percentage is agreed upon at the outset, and your income for each year is calculated by multiplying this rate by the latest annual valuation of the investment portfolio of the trust.

Example: Fred, 62, contributes $100,000 in cash to a unitrust, arranging to receive 6% of the fair market value of the unitrust assets each year, payable quarterly. The first year he is entitled to $6,000 (6% of $100,000). At the time of the second valuation, the unitrust portfolio is worth $110,000. For that year, Fred is paid $6,600 (6% of $110,000). If the trust value had decreased to $90,000 at the time of the second valuation, Fred would have received $5,400 (6% of 90,000). In each subsequent year, the same procedure is followed. In the year he creates the unitrust, Fred is entitled to an income tax charitable deduction of $36,849 (deductible up to 50% of his adjusted gross income). If necessary, he has an additional five years to use up the deduction.

Wills and Bequests:

When you leave assets to a charity, such as The Kentucky United Methodist Children's Homes, through a will, you are making a bequest. Your estate will receive a charitable estate tax deduction upon your death, when the gift goes to charity. Your bequest may be for general purposes or for a restricted purpose that you describe in your will. You may provide a specific amount of money or specific assets (stock, property, land) or name The Kentucky United Methodist Children's Homes as the recipient of the “rest and residue” of your estate (all remaining monies after your specific bequests are fulfilled). Always make sure you provide the correct legal name for the charity. The Home’s legal name is The Methodist Home of Kentucky, Inc.

Gifts of stock in your Will:

To give securities rather than cash, simply provide an accurate description of the securities and designate The Methodist Home of Kentucky, Inc. as the recipient. For example, “I give 100 shares of XYZ Corporation to The Methodist Home of Kentucky, Inc.” Special attention should be taken to include language that covers additional shares of XYZ Corporation issued subsequent to the writing of the will due to a stock split or issued by a successor corporation in exchange for shares of XYZ Corporation. One way to address these contingencies is to gift “all of my shares of XYZ Corporation, their successors and assigns, to The Methodist Home of Kentucky, Inc.”

Gifts of other investments in your Will:

Charitable Annuities

A gift annuity is a contract between a charity, such as The Kentucky United Methodist Children's Homes, and you. In return for a donation of cash or other assets, we agree to pay you (or a friend or family member if you prefer) a fixed payment for life. You can also claim a charitable tax deduction. If you fund a gift annuity with long-term capital gain property like appreciated stock, you may need to report only a portion of the gain, and may be able to report it in installments over several years.Like any other annuity, this plan will pay you a fixed dollar amount for life. What makes charitable annuities special, is that not only do you receive the fixed payment for life, you are also entitled to receive a charitable tax deduction.

You begin by making an irrevocable gift of money or securities to The Kentucky United Methodist Children's Homes. The income you will receive is determined by your age (and the age of a second beneficiary, if you choose) at the time of the gift. The Kentucky United Methodist Children's Homes guarantees the amount, which remains constant once your gift is made.Example: Alice, 75, enters into an agreement with the Homes for a Charitable Gift Annuity in the amount of $50,000. In return for her irrevocable gift of $50,000, Alice receives a contractually-guaranteed annual payment of 5.8%, or $ 2,900 (based upon her age) every year for her lifetime. In addition, she receives a tax deduction of $20,900.This type of income plan is particularly attractive because the older you are, the higher the rate you can obtain when the contract is signed.

For the charitable annuity gift, you are entitled to an income tax charitable deduction in the year of your gift. Also, a large portion of each annuity payment to you is tax-free for a period of years. Both figures are based upon life expectancy as determined by the U.S. Treasury tables

This website is designed to only provide information about estate planning and will preparation, and it is not legal advice. Please seek the guidance of your lawyer or financial planner as needed.

Planned Giving Options