BEQUESTS - MAKING A GIFT THROUGH A WILLBEQUESTS - MAKING A GIFT THROUGH A WILL

Through a will or living trust, donors can relay what matters most to them and have their interests put into action upon their death. There are two common types of bequests:

Specific bequest. Donor gives a specific asset, such as cash, stock or real estate upon death.

Residuary bequest. Donor gives all or a portion of his/her remaining estate after estate-related expenses and specific bequests have been paid.

Keep in mind that most people leave an estate when they die. Charitable gifts from these estates, large and small, can be made simply by naming the LCF in their wills and/or living trusts.

Target Audience

  • Clients who can’t afford to make a gift now, but wish to benefit charity upon death.
  • Clients who wish to benefit charity, but want the option to change their minds down the road.
  • Charitably-minded clients who have no heirs.
  • Clients who wish to benefit heirs with specific gifts, then charity with the remainder of their estates.

Tax and Financial Benefits of Making a Bequest

  • The amount bequeathed to charity is given free of federal estate tax.
  • Making a bequest costs the donor nothing.
  • Having no will (or revocable living trust) may subject the donor’s property to be distributed according to state law without regard for the donor’s needs or intentions.

Benefits to you, the Professional Advisor

LCF will support you with a full range of charitable products and services, and you'll be compensated for your efforts by Thrivent or American Funds. (details)

How to Make a Bequest to the Lutheran Community Foundation

  1. Donor completes a Fund Workbook. All gifts made to the LCF are placed in a charitable fund created by the donor. The first step in creating the charitable fund is to complete the Fund Workbook.
  2. Once the Foundation receives a completed Fund Workbook, it drafts a document called a Fund Agreement. This document will be sent to the donor for signature and will be countersigned by the Foundation. The purpose of this document is to list the charities the donor wishes to benefit and govern the administration of the donor’s perpetual fund. The donor may change the charitable beneficiaries at any time by revising the Fund Agreement.
  3. Donor updates language in will or living trust. Following are sample provisions that a donor may insert in his or her will or living trust (subject to individual attorneys’ styles and state restrictions):

Specific Bequest. I give to the Lutheran Community Foundation, a Minnesota nonprofit corporation, [asset to be gifted], for the benefit of the [insert Charitable Fund name].

Residuary Bequest. I give, bequest and devise all of the rest, residue and remainder of my estate to the Lutheran Community Foundation, a Minnesota nonprofit corporation, for the benefit of the [insert Charitable Fund name].

If the donor wishes to include the LCF’s tax identification number in the documents, the number is 41-1802412. The charities the donor recommends to benefit should not be included in the donor’s will or living trust agreement. If specific charities to be benefited through the Foundation are listed in the will or living trust, the LCF may not be able to accept the bequest because of limitations imposed upon us as a community foundation, specifically dealing with our variance powers.

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