Many of us are fortunate enough to have more than we need. We may find ourselves asking, “Why has God given me more than enough? What should I do with the extra?”
Some people make the case that since the future is unknown, it is necessary to retain all of our assets and only distribute the excess at death. And it is true that medical and living expenses can be volatile. A wit has suggested “the golden years” got the name because it takes a lot of gold to pay the doctors!
However, the parable of the three servants in Matthew 25 helps us see that we are called to be both wise and faithful with the resources and gifts we have received. We ought to plan carefully for the future, but burying or hiding our assets away because of the fear of not having enough does not honor the Lord who has richly blessed us (Matthew 25:14–30).
There are many, many ways you can choose to be generous with your more than enough. One option is to gift assets to family members and your favorite ministries and enjoy seeing them benefit from your generosity while you are living.
If you find yourself ready to give now, certain assets may provide greater benefit than others. Consider assets that have appreciated in value. If you gift them to personal beneficiaries during your lifetime, these assets will retain your original cost basis and would be subject to capital gains tax on appreciation when sold. However, if you transfer highly appreciated assets to a charity, you do not pay any capital gains tax. The result can be a savings of 15 to 25 percent of the asset value.
When considering making a gift of assets other than securities, plan to evaluate them based on marketability, valuation, and indebtedness (liens) against the property. For example, where a mortgage has been on the property for less than five years, restrictions may apply.
If you are curious about these or other creative ways you can be generous, you can email us at contactcenter@cdfcapital.org or call us at 888-540-7112. You can also explore some of the insight of our partners at Financial Planning Ministry by clicking here.
