Planned giving is a generous and effective way of ensuring St. Mary's future.  You can make a planned gift in a number of tax-beneficial ways.  While you should always consult with your attorney or accountant for guidance in determining the planned gift approach that is right for you and your family, we suggest the following options:

Gifts by Will
Generally, bequests by will to the church are exempt from federal and most state inheritance taxes. With a gift by will, your total estate value is reduced by the amount of your planned gift, reducing your overall estate tax.

By your will or your trust, you can make St. Mary's Church the beneficiary of cash, securities, and/or other property. You may designate specific amounts or a percentage of your estate, or you may make St. Mary's a beneficiary of your estate, that is, a recipient of some part of the balance after payment of specific bequests, expenses, and taxes.

Current Gifts with Income Retained
During your lifetime, you may make gifts of securities or other property and retain a stream of income for yourself or other designated beneficiaries. If you reserve income rights, a portion or all of such income will be taxable to you, typically as a combination of ordinary income and capital gain. You will receive a charitable gift tax deduction for a portion of your gift. At the death of your surviving beneficiaries, the principal then goes to St. Mary's Church.  These Trusts are typically referred to as Charitable Remainder Trusts.  Another technique for continuing lifetime income from a gift is to utilize a Charitable gift Annuity.  We need to stress the importance of having your Accountant and attorney involved in these decisions.  Please call the parish and we will provide you with more details.

Charitable IRA gifting opportunity
The Pension Protection Act of 2006 signed into law Aug.17 provides a limited-time opportunity to make charitable contributions directly from individual retirement accounts (IRAs) to qualified charitable organizations between now and Dec. 31, 2007. Here are the basics:

• Individuals aged 70 1/2 and older may transfer up to $100,000 per year directly from an IRA to a qualified charity like St. Mary's;

• Funds removed from the IRA for this purpose do not add to the giver's taxable income, therefore, taxes will not have to be paid on them;

• Because the funds are not taxable as income, they cannot also be claimed as a deduction;

• This withdrawal from an IRA may be applied toward the required minimum distribution; and

• Even if donors make other charitable gifts that fully utilize the allowable federal income tax charitable deduction (50 percent of adjusted gross income for cash gifts to public charities), they also can take advantage of the legislation.

The legislation does include limitations. For example, qualified contributions may not be used to fund charitable remainder trusts or gift annuities. Consultation with a tax professional is advised for those contemplating a gift under the new law.