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Volume 37, Number 2 |
Richardton, ND 58652 |
April 2009 |
Ways of Giving
By Br. Michael Taffe, O.S.B.
In Chapter 4 of his Rule, St. Benedict tells his monks that they are to always keep
death daily before their eyes, memento mori. Such an attitude will keep us oriented
to what is important, since only God knows when we will pass from this present life.
Often, people who experience a significant loss or a terrible illness report that
this event has required them to re-
An additional reason for remembering one’s death concerns the importance of planning for the care of those important to you through the organization of your financial and personal resources. Such a plan will help ensure that loved ones and organizations deemed important to you are adequately taken care of. Furthermore, this step should reduce contention and confusion among family members. Unfortunately, we hear about too many family members who stop speaking to each other because of conflict over the last will and testament of a parent or relative.
There are numerous options that can be undertaken to arrange financial and personal resources. Obviously, before pursuing any of them, one should speak with a financial advisor and estate lawyer.
When making a gift to Assumption Abbey, we can ensure that this gift continues to “give” over the long haul. For example, if you make a specific contribution to our education or building and maintenance fund, we keep the principal of this fund intact and use any interest or gains toward the education of our monks or the upkeep of our buildings. This approach is a wonderful way to remember and honor a loved one for a long, long time.
Overall, there are generally two approaches that can be used. The first is to arrange for the dispersion of an estate upon one’s death. This is the most common focus of what we think of as a will. The second is that of distributing the parts of an estate prior to one’s death. This would be an example of a trust fund or annuity of some type.
Wills. As stated above, a will provides for the dispersion of an estate after the
death of an individual. There are a few different ways to approach this. One could
split the estate by percentages, giving family members and organizations a percentage
of the estate. In this case, nephew Bill might receive 10% of the total and Assumption
Abbey would also receive 10% of the total; spreading out the estate to equal 100%.
Another option is to give fixed amounts of the estate: in this case, nephew Bill
might have a gift of $5000. Obviously, a combination of the two types can also be
used. An additional option would entail spreading out the dispersion of the estate
over a number of years. In this case, the beneficiaries receive a fixed gift or percentage
of the total estate each year for a specific number of years. Some specific resources
may also be given to individuals or organizations. These resources may include property,
paid-
Trust and Annuity Accounts. With this approach, the holder of the estate disperses some of the estate prior to death, while still maintaining the financial benefits of the estate. One advantage of this type of plan is that the owner of the estate can receive valuable tax benefits in addition to helping out a cherished organization. With an annuity, the owner of the estate donates a fixed amount of money (or property, insurance policy, etc.) to an organization. The organization will then pay a fixed amount of what that initial gift was worth to you or some other beneficiary (this can include the estate owners, a spouse, and even children). Often this is about 8% (depending on age, etc.). Note that there are some age and income requirements that have to be met prior to undertaking this type of plan.
Again, if you have not made any plans regarding your estate, it is best not to delay. We would be grateful for any plans that you might make that would include the Monks of Assumption Abbey. If you would like to make a bequest to us, please know that our legal name is Assumption Abbey, Richardton, ND. We would be happy to answer any questions you might have about your estate planning, but we also encourage you to speak with your own lawyer and financial planners.
DEVELOPMENT OFFICE
Br. Michael Taffe, O.S.B.
