Spring 2023 | Legacy of Hope

We are ambassadors for Christ, as if God were appealing through us. (2 Cor 5:20)

We read these powerful words of St. Paul at the start of the season of Lent. These words reminded me of you during a recent meeting of the friars here. Because of your great generosity, we were able to provide support to people in need at 33 Franciscan missions throughout the world.

Five chapels will be built as part of the Come, Let’s Together Build the House of God mission in India. Mentally challenged children at the Mbazi School, Uganda will receive meals, medicine, and clothing this year. The parishioners of St. John the Baptist Parish in rural Philippines will have a beautiful church to celebrate the Mass and other sacraments. The friars in Myanmar will receive funds to continue the formation of young Franciscan friars in a country filled with civil war. The houses of ten poor parishioners will be given much needed repairs in Negril, Jamaica. And thousands of people in Ukraine will be given food, medicines and lodging as the war in their country continues.

These are just a few of the programs that will receive support because of your generosity. You are an Ambassador for Christ, as if God were working through you.

I share this Legacy of Hope newsletter with you because you are a faithful friend. Perhaps you will find some information here that can assist you with planning for your future. Your thoughtfulness today will ensure the ministry of Franciscan missionaries continues in the future. Together, we can continue to be Ambassadors for Christ. Together, we deliver hope.

I encourage you to request a copy of our booklet, Living Trusts. Perhaps you will find some information that can assist you with planning for the future.

—Brother Andrew Brophy, OFM

Grateful Mateo student

We have all heard stories about the probate process, and many of those stories have caused fear for those who are planning their final affairs. However, for many, the probate process is not something to be overly concerned about. It provides supervision so that your final wishes are carried out as you intended and that your final bills, taxes and other expenses are appropriately tended to.

That being said, in some cases there can be advantages to “escaping the hands” of probate, and there are certain assets that make the process quite simple, as their disbursement is controlled outside of one’s will or trust. This is done by beneficiary designation. Often, naming a beneficiary is as simple as filling out a form.

For example, you can designate the Franciscan Missions to receive some or all the balance left in your Bank or Investment Accounts at the end of your lifetime. Your bank or broker can provide you with easy directions to complete a change of beneficiary form, and these forms can often be completed online.

Life Insurance and Commercial Annuities also offer the ability to name beneficiaries, with the benefits typically passed along outside of probate. Beneficiary designations can be for the full amount, a percentage, or can be made contingent depending upon other circumstances.

Individual Retirement Accounts and most other “Qualified Retirement Plans” such as 401(k) and 403(b) plans offer similar beneficiary designation advantages. (Note: by making the Franciscan Missions a beneficiary of such funds, the high taxes that typically are incurred when left to others can be avoided.)

Donor Advised Funds are becoming quite popular, as they provide a means to support one’s favorite charities in a tax-advantaged way, while also offering flexibility as to how the funds will be dispersed. These Funds also offer an opportunity to name charitable beneficiaries if there are assets remaining when one passes away.

A general note of caution: some consider naming a loved one as a joint owner of an account as a type of beneficiary designation but be wary: when you own certain assets jointly and one of the owners passes away, that account becomes the property of the survivor. As convenient as that might seem, such an arrangement might have unintended consequences: 1.) there could be tax implications; 2.) the asset could be subject to a lien placed on one of the owners; 3.) your joint owner is generally not bound to abide by your spoken wishes as to how those assets should be distributed.

Argentina Literacy Program friar and students

Some people are afraid of change. They are accustomed to doing things a certain way, and change can cause stress. But a change occurred last year that can be good news to those who contributed to certain retirement plans during their working years.

Toward the end of December, a new law known as the “SECURE Act 2.0” made a number of changes to the rules governing qualified retirement plans like IRAs and 401(k)s. Among the changes is an increase in the age at which you must begin taking taxable withdrawals from your retirement account.

Qualified retirement plans are designed to encourage retirement savings by allowing individuals to set aside income without first paying income taxes on the money. These “pre-tax” dollars are held in an account and invested on a tax deferred basis. When you withdraw money from your account, usually after retirement, the deferred income taxes come due.

The Required Minimum Distribution (RMD) is intended to discourage accumulation of large amounts of untaxed money in qualified retirements plans. The RMD rules changed and now require individuals over age 73 to take taxable withdrawals each year.

A Qualified Charitable Distribution (QCD) allows an individual who is 70½ or older to direct a charitable contribution from an IRA to the Franciscan Missions without incurring income tax on the withdrawal. Although there is no income tax charitable deduction when making a QCD to support our work, there is no income tax on the withdrawal either. Even those who do not itemize deductions on their tax return can benefit from this feature. In addition, if you are age 73 or older, a QCD counts toward your Required Minimum Distribution for the year.

Gifts from Qualified Retirement Plans are vital to Franciscan Missions as we continue to spread the Gospel message to those entrusted to our care. Your generosity helps us to ease the pain of those who are hungry, homeless and searching. Please contact Linda Knight at 262-534-5470 to learn more about the tax advantages of making a gift from your retirement plan.