Charitable Gift Annuity

by Jared Roddy

Content reproduced here from the Sept/Oct 2010 issue of Catholic Aid Journey magazine.


     

To support the Roman Catholic Church in extending the faith, especially by commending and encouraging Catholic schools and religious education, is one of the primary tenets of Catholic Aid's mission. So it is with great humility that we recognize members who themselves take that mission upon themselves as their final act.

On March 17, 2010, Fr. Eugene Kevin "Tiger" Lemm passed away. He was 80 years old, a native son of Browerville, Minn., and is remembered for "serving others humbly with great generosity and kindness." For the students and families of Christ the King church and elementary school in Browerville, generosity is hardly a big enough word to describe him.

It was shortly after Fr. Lemm's death that Fr. Ralph Zimmerman, pastor of Christ the King, was informed that Fr. Lemm had left something for the school.

"Well, we were surprised," Fr. Zimmerman says. "It was a great, wonderful surprise. His final gift was over $100,000 and it was given to the school."

In fact, Sales Representative Ryan Schmitz informed Fr. Zimmerman that an annuity worth $104,000 owned by Fr. Lemm had listed Christ the King school as its only beneficiary.

 

Fr. Eugene Lemm, 1930-2010.Fr. "Tiger" Lemm's final gift to Christ the King school in Browerville, Minn., will provide more than $100,000 for operating costs, tax-free. Photo courtesy the Browerville Blade.

"He basically left it for them to do with whatever they wanted. Fr. Lemm sort of lived his life like whenever anyone needed anything, he just gave it to them," Schmitz says.

The gifting of an annuity to a charitable organization, like a church or parochial school, also means that it does not have to pay any taxes on the interest earned. So the gift is as good as cash.

According to Director of Sales, Tom Schisler, the school has the option to let the annuity continue to build, take interest only payments, chip away at the principal as the need arises, or take the entire sum in a lump payment.

Fr. Zimmerman says the school board was discussing what to do with the surprise gift, but that it certainly gives them some breathing room.

 

"I don't know for sure. As you know, Catholic schools with less than 50 students are always challenged. And we're right at 50," he says. "It keeps giving us life and helps us to work with our limited funds. [The parish] heavily subsidizes the school, so it gives the parish a chance to look at those things. I'm also thinking of our religious education program. We're a parish cluster now, so this gift will help the whole community."

In Fr. Lemm's case, he left no instructions for how he wished for the annuity to be used. It was to go to the school and for that body to decide how to use it.

According to Schisler, gifts of annuities or charitable life insurance policies can be made with as few or as many stipulations as the original owner decides.

"If you want to give it to a charitable organization like a church, it's as simple as listing them as a beneficiary. Then they can decide how to use those funds after you're gone. In Fr. Lemm's case, I believe they've still got the annuity with Catholic Aid while they decide what to do with it." If the owner wants certain conditions to be followed after their death, however, a trust can be set up through the Catholic Aid Foundation that will ensure the proceeds of their final gift are used in accordance with their wishes.

Fr. Lemm seemed to only desire that the children of Christ the King receive the best education available, and his gift will go a long way toward making that a reality today and in the future.

"We certainly say of our plans 'make your home parish one of your children in terms of inheritance," Fr. Zimmerman says. "It helps us to keep going. Those funds are the future; they will keep on giving after we're all gone. This is a permanent gift."

Contact your Sales Representative to learn how you too can leave a permanent gift for your church or school.

     

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