A KNIGHT’S
LEGACY
by Steve Marget, DD
Attorney at Law
A picture is worth a thousand
words. But no pictures or mere
words exists to adequately
illustrate the legacy of the
Knights of Columbus.
Quiet reflection would be
better.
So I invite you to reflect on
that legacy and your legacy.
During your reflection take
mental pictures of hundreds of
activities of the Knights of
Columbus. There are countless
projects, both large and small,
that leave the world changed for
the better; fish fries, blood
drives, youth activities, Special
Olympics, the Culture of Life,
the Wheel Chair Foundation,
Habitat for Humanity, Relief
Efforts, etc. The list is countless.
Foremost you will observe
the defense of the faith and the
support of the Church. “In
service to One, in service to all.”
On any given hour of any
given day, locally and around
the world, knights are coming
and going contributing their
time, talents, and treasures to
make our community and the
world a better place.
You and your brother knights
are not only sharing the
“Experience of a Lifetime” but
are leaving a legacy for the
future.
Why
should
your
“Experience of a Lifetime” ever
end, even when you are gone?
Will You Ever Have More
Assets Than You Need?
Your current contribution of
time, treasures and talent is vital
to the mission of the Knights of
Columbus.
For many
knights it is
hard to image
giving more,
especially in
these tough
economic
times.
Few of us today can give
substantial monetary sums to the
Knights of Columbus.
What would you do when the
day came when you had more
assets than you would ever
need?
That is not an idle question for
day dreaming. It is a necessary
question we all face knowing
that on our death we will not
personally need any of our
earthly assets.
On that day, the day of our
death, we can, but only if we
plan ahead, use assets to leave
our own monetary legacy.
Planning for that day is what
estate planning is all about.
Planning today to create future
charitable benefits is the essence
of planned giving.
Types of Planned Gifts
Many Knights are aware of
planned
giving
through
solicitations they receive from
various colleges, museums and
other charitable organizations.
Solicitations explain various
planned giving techniques such
as; will bequests, charitable
remainder trusts, and gifts of life
insurance, appreciated property,
IRA distributions, gift annuities,
and other more complex estate
planning arrangements. These
solicitations often describe winwin-win situations in which
planned
giving
techniques
enhance
current
income
resources for the donor and
beneficiaries while providing
much needed resources for the
charities.
Many
planned
giving
arrangements
are complex.
Others are simple to implement.
For example, a knight might
think about leaving a legacy by
gifting all or part of a life
insurance policy, an IRA, 401K
or an annuity.
A legacy might be left via a
bequest in your Last Will and
Testament.
Life Insurance
One way to leave a legacy is
for a knight to simply name the
Order’s charitable endowment
fund, or a local charitable fund
with 501(c)3 status, as a
beneficiary or partial beneficiary
of a life insurance policy,
retaining the right to make
changes including the right to
change the beneficiary in the
future.
In this arrangement where the
proceeds are paid to a charitable
organization,
your
estate
receives a charitable estate tax
deduction as allowed by law.
Another way to designate life
insurance proceeds at your death
is to designate the fund as both
owner of the policy and the
beneficiary.
This
method
benefits the Order and gives you,
the donor, a bonus in the form of
an
income
tax
itemized
deduction.
Additional sums
donated for the premiums
payment may also be deductible.
Finally, one might consider
donating an existing policy no
longer needed. In most cases, a
donation of an existing policy is
eligible for a charitable income
tax deduction.
IRA’s and 401(K)
What is your IRA or 401K
doing? What will it be doing in
the future, if your IRA or 401(K)
balances outlive you?
How
might those future balances
perform to meet the critical
needs of your community, the
Order, the Church and the
world?
Bequests to the charitable
endowment fund of distributions
from IRAs and 401(K) s are not
subject to income taxation that
otherwise apply to individuals
and non-charitable beneficiaries.
Also the proceeds may be
excluded from estate taxation as
a charitable bequest.
Your Last Will and Testament
Another common method of
leaving a legacy is by naming a
qualified K of C charitable fund
in your Last Will and Testament.
You might consider a specific
dollar amount or a percentage of
the residue.
You might have read about
Mrs. Ray Kroc, the widow of the
founder of McDonald’s donating
$50 million in her will to the
University of Notre Dame in
2003. But did you know that
countless other people donate
sums of $5,000 and up in their
wills every year to various
churches and charities around
the Archdiocese?
Neither Mrs. Kroc’s nor these
other bequests would have been
possible if the bequests had not
been included in their Last Wills
and Testaments.
What Statement Does Your
Last Will and Testament
Make?
In addition to the Old
Testament
and
the
New
Testament, there is something
called your Last Will and
Testament.
A charitable bequest in your
Last Will and Testament makes
a strong statement.
I will never forget a few years
ago drafting a will for a middle
income husband and wife with
six children.
After our estate planning
discussion, the couple decided to
divide their estate into seven
shares; one share for each child
and a 7th share to their parish.
They felt that by giving a share
to a religious charity, they would
be leaving their six children
something stronger than cash - a
strong statement of the impact
that the local parish had in their
lives and a statement of their
faith that their Catholic Church
would continue to impact the
world in the future.
Think about what a similar
impact and statement a legacy in
your will would have on your
family and brother knights.
Your accountant, lawyer, and
other financial advisors can
assist you in coming up with
optimized planning.
Since
Father
McGivney
founded
the
Knights
of
Columbus in 1882, the Order has
continued to increase its
charitable
donations
and
volunteer service hours. In 2010,
these amounts set all time
records of over $154 million and
over 70 million hours. We are
our brothers’ keepers! The need
for our charitable works and our
response will continue to
increase.
Each
knight
can
be
empowered to share in the future
mission of the Order, even after
their lifetime, but only if we plan
today to leave a legacy in the
future.
By leaving a legacy, you do
not ever have to end your
“Experience of a Lifetime” as
your impact continues on the
Order and the world.
About The Author
Leaving A Legacy is
Empowerment
As you reflect, think about the
many missions of the Knights of
Columbus. Perhaps you are more
passionate about some than
others.
A legacy can make it possible
to sustain particular missions in
the future.
You might even think of new
possible missions! Get creative!
God has given us, as stewards
of earthly assets, a free will to
make decisions how to best use
material wealth. As stewards, it
is our responsibility to be
knowledgeable about options
and opportunities to provide for
ourselves, our families, our
Order and our Church.
Steve Marget is a
past Grand Knight of
St. Cecilia Knights
of Columbus Council
13357 and a current
District Deputy in
Houston. His legal
practice is focused
on Probate and Estate and Life
Planning. He is a frequent speaker
before church and community
groups on the subject of estate
planning and planned giving. He
may be contacted at The Marget
Law Office at 281-556-3155.
The article above is for general
education and awareness. The
statements made therein are not
intended to be specific legal or tax advice
to be relied upon. For advice specific to
your situation, contact a legal,
accounting, investment, tax professional
or your K of C Field Agent.
Information can also be obtained by contacting your Knights of Columbus Field Agent, Mark L Deaton, FICF,
www.markldeaton.com, email: markdeaton1@yahoo.com , Telephone (281) 381-1366