Wills & Estates
A will is your legal document that ensures your estate wishes are carried out as you intend and that your family and loved ones are cared for. Without a will, the state makes all major decisions, including how your assets will be distributed once you pass.
You will also need to identify an executor, or personal representative, who will carry out the wishes of your estate. The executor is named in your will.
Through your Last Will and Testament, you may designate planned gifts to MEI. Including MEI in your will or living trust allows you to make a future gift while maintaining control over your assets during your lifetime. Sample language is below. You may designate your gift as a fixed dollar amount, a percentage of the total estate or a percentage of the residual estate.
Sample Bequest Language
Fixed Dollar Amount:
I give to Mission Encounters International, located in Kill Devil Hills, NC, the sum of $_______ to be used for its general operating support (or you may designate a specific ministry).
Percentage of Estate Language:
I give _____% of my estate to Mission Encounters International, located in Kill Devil Hills, NC, to be used for its general operating support (or you may designate a specific ministry).
Residual Bequest Language:
After all your estate expenses and specific bequests have been distributed, the remaining or residual funds are given to MEI.
I give and devise to Mission Encounters International, located in Kill Devil Hills, NC, all (or a stated percentage) of the rest, residue and remainder of my estate, both real and personal, to be used for its general operating support (or you may designate a specific ministry).
Contingent Bequest Language:
You may designate MEI as a contingent beneficiary if one or more of your specific bequests cannot be fulfilled.
If (insert name) is not living at the time of my demise, I give and devise to Mission Encounters International, located in Kill Devil Hills, NC, the sum of $_________ (or all or a percentage of the residue of my estate) to be used for its general operating support (or you may designate a specific ministry).
Include this paragraph with your specific bequest language:
Mission Encounters International, (MEI) is a nonprofit organization and is qualified for tax exemption under Section 501(c)(3) of the Internal Revenue Code. Mission Encounters International’s tax identification number is 27-1165900.
We suggest contacting an attorney to prepare a will that reflects your express wishes.
Beneficiary Designations
Naming Mission Encounters International as a beneficiary on any of your financial accounts is a straightforward way to make a future planned gift – without changing your Last Will. You may contact your bank, broker or retirement account administrator and request Transfer-on-Death (TOD) or Payable-On-Death (POD) forms to designate MEI as a beneficiary.
“Payable on Death” or “Transfer on Death” accounts remain in your ownership and control while you are living. You may make additions or withdrawals from the account and may cancel or change the named beneficiary. At your death, remaining assets would simply be transferred to MEI.
Life Insurance
Most people purchase a Life Insurance policy to provide for their children, protect their home mortgage, or secure retirement funds. As people age, they may find that they no longer need financial protection in these areas and may use their policy as a planned gift to MEI.
There are several ways you can use your policy. For example, you can name MEI as the owner and beneficiary of your policy, as the sole beneficiary, as a co-beneficiary, or secondary beneficiary. Alternatively, you may assign annual dividends to MEI as a gift. You may deduct this amount on your income tax return. Specific tax benefits will depend upon on the method of giving you choose.
Retirement Assets
Retirement Assets are tax-deferred retirement accounts, designed to promote savings for retirement, and include profit sharing, IRAs, 401(k), 403(b), and Keough and pension plans. As some individuals approach retirement age, they discover that they have accumulated more funds than they will likely use. If you have a larger estate, subject to both income and estate tax, retirement assets may be a good source for your planned gift to MEI.
If you are between ages 59 ½ and 70 ½, you may donate a portion of your retirement assets by making a taxable withdrawal and then donating the cash.
Alternatively, you may consider naming MEI as a primary or contingent beneficiary of your retirement assets. This allows you to avoid significant income and estate taxation. By naming MEI as a beneficiary of your retirement plan, you maintain complete control over the asset while living.
Simply request a change of beneficiary form from your retirement plan administrator. When the form has been properly submitted, please notify MEI as well. Your designation should include our name, Mission Encounters International, and address: PO Box 2171, Kill Devil Hills, NC 27948. Please include our tax ID number, 27-1165900.
For individuals who meet certain requirements, The Consolidated Appropriations Act of 2016 allows up to a $100,000 charitable contribution from eligible IRA accounts with numerous tax advantages. “Qualifying charitable distributions” (QCD) made from a traditional or other eligible IRA may be excluded from gross income, provided certain provisions are met. Such gifts may satisfy the required minimum distributions (RMD) for the year when the QCD is made.
To receive favorable tax benefits, the following conditions must be met:
- Donor must be 70 ½ or older at the time of the gift
- Funds must be withdrawn from a traditional or other eligible IRA account
- Funds must be directly transferred from the IRA to the qualified charity with no intervening ownership by the IRA owner
- Donor must not receive any benefits of value in return for the gift
- Gifts must not exceed $100,000 in total qualified charitable distributions per tax year, per individual
- Gift must be properly reported to the IRS on the donors’ tax return
This last requirement requires careful attention. We suggest that you consult your tax advisor for instructions on how to report your donation from your IRA on your tax return.
Once MEI receives your gift, you will receive a non-deductible gift acknowledgement from MEI. We suggest that you consult your tax advisor for instructions on how to properly report your donation from your IRA on your tax return.