Making Bequests
Leave a Lasting Legacy
Confidence In The Future
Bequests are gifts that are made as a part of a will or trust. They’re a simple and flexible way to support the ministries and programs that are important to you and your family. They can also help lessen the impact of taxes on your estate or your family.
Convey Your Intentions
Conveying Intentions
If you are considering including St. Paul’s in your will, you may wish to visit with the Foundation’s Executive Director to discuss options. Together you can develop a Gift Agreement to stipulate the ways in which you’d like your gift to be used, details that do not need to be included in the language of your will. The tax ID number for the Foundation is 75-3093308. The official legal bequest language for St. Paul’s is:
“I [name], of [city, state, ZIP], give, devise and bequeath to St. Paul’s United Methodist Church of Cedar Rapids Foundation [written amount or percentage of the estate or description of property] for its unrestricted use and purpose.”
Restricted or Unrestricted Bequest
When you make a charitable bequest to St. Paul’s, you should consider whether or not to restrict its use.
Unrestricted Bequest
If you give an unrestricted bequest to the Church, your gifts will be used according to church policies in effect when the gifts are received. If you give an unrestricted bequest to the Foundation, your gifts will be placed in a permanent endowment fund; current board policy is to place it in the Unrestricted Gifts Fund. Annual distributions from this fund are directed each year by the board and/or the Church Council to a church ministry.
Restricted Bequest
If you have a certain ministry or program you wish to benefit, you may restrict your bequest. Do this either by citing the restrictions in your will or, to provide for more flexibility, by creating a Gift Agreement in consultation with our Executive Director. A typical method of restricting a gift is by naming the permanent endowment fund into which your gift shall be placed.
Bequest Options
Below are some generally accepted ways to make a bequest. One will probably fit your intentions better than others, so you should discuss them with your attorney as you prepare your will.
Specific Bequest
This is the gift of a specific item to a specific beneficiary. For example, “I give my golf clubs to my nephew, John.”
General Bequest
This is usually a gift of a stated sum of money. It will not fail for lack of cash in the estate. For example, “I give $50,000 to my daughter, Mary.” If there is only $2,500 cash in the estate, other assets must be sold to meet the bequest.
Contingent Bequest
This is a bequest made on condition that a certain event must occur before distribution to the beneficiary. For example, “I give $50,000 to my son, Joe, provided he enrolls in college before age 21.” A contingent bequest is specific in nature and fails if the condition is not met. (A contingent bequest is also appropriate if you want to name a secondary beneficiary in case the primary beneficiary does not survive you.)
Residuary Bequest
This is a gift of all the “rest, residue, and remainder” of your estate after all other bequests, debts, and taxes have been paid. For example, you own property worth $500,000 and you intend to give a child $50,000 by specific bequest and leave $450,000 to a spouse through a residuary bequest. If the debts, taxes, and expenses are $100,000, there would only be $350,000 left for the surviving spouse. Rather, you should divide your estate according to percentages of the residue (rather than specifying dollar amounts) to ensure that your beneficiaries receive the proportions you desire.
Restricted or Unrestricted Bequest
When you make a charitable bequest to St. Paul’s, you should consider whether or not to restrict its use.
Unrestricted Bequest
If you give an unrestricted bequest to the Church, your gifts will be used according to church policies in effect when the gifts are received. If you give an unrestricted bequest to the Foundation, your gifts will be placed in a permanent endowment fund; current board policy is to place it in the Unrestricted Gifts Fund. Annual distributions from this fund are directed each year by the board and/or the Church Council to a church ministry.
Restricted Bequest
If you have a certain ministry or program you wish to benefit, you may restrict your bequest. Do this either by citing the restrictions in your will or, to provide for more flexibility, by creating a Gift Agreement in consultation with our Executive Director. A typical method of restricting a gift is by naming the permanent endowment fund into which your gift shall be placed.