Thursday, July 30, 2015

Life Insurance Legacy Gifts

By: Laurie Valentine- COO & Trust Counsel

Using life insurance to make a legacy gift to your church, the Cooperative Program or other charitable organization allows you to make a larger gift than you may have ever dreamed possible. That’s because the premiums you pay are generally significantly less than the life insurance death benefit that will pay out at your death.

There are two ways to make a legacy gift with life insurance. You can name the church or other charity the primary or contingent beneficiary of the policy or you can transfer ownership and all rights in the policy to the charity.

Naming one or more charities as the primary or contingent beneficiary of a life insurance policy is simple. Doing that provides no current tax benefits to you, but does set up a plan to fund a potentially significant gift to the named charitable beneficiaries of the policy at your death for which your estate would get an estate tax deduction.

Transferring ownership of a life insurance policy to a charity is a charitable contribution for income tax deduction purposes. If the policy is paid-up, the charity holds it until you die and collects the death benefit. If premiums are still due on the policy, cash gifts you make in future years to the charity to provide the funds for premium payments are additional charitable gifts. If you get to the point you can no longer provide funds for future premiums, or don’t want to do that from the outset, the charity can cash in the policy or adjust the death benefit to take it to “paid up” status.

Leverage your legacy giving through a life insurance gift.

If you have questions, don't hesitate to contact me at our toll-free number (866) 489-3533.

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

Tuesday, July 28, 2015

Do You Know?

By: Richard Carnes- President & CEO 

Do you know that the average person’s net worth consists of 9% in cash and 91% in non-cash assets (home equity, life insurance, retirement assets, investments and business interests)? Do you know that 60% of Americans die without a Will, and of those who do have one, 70% have not reviewed it within the past three to five years? Do you also know that Americans are currently in the midst of the largest ever generational transfer of wealth? Estimates project that $41 trillion will pass from one generation to the next during the period of 1998 through 2053.

In view of this data it is vital for each of us to be faithful in our “estate stewardship.” As Christian Stewards (Managers) we should hold certain convictions regarding the resources God has entrusted to us for our use and oversight:

1. God is the creator and owner of all things, and we are instructed to be God’s managers.

2. How we plan our estates likely will be the single most important act of financial stewardship we shall ever make.

3. Through thoughtful estate stewardship, each of us can care for our families and impact the world for Christ.

Whether we are considering our estate plan for the first time or reviewing plans already in place, we benefit from identifying our objectives, approaching them realistically, and avoiding hazards through seeking knowledgeable counsel. Appropriate counsel helps us know where to begin, what to look for, and what we might expect in the process. Ultimately, we can turn this stewardship task into effective, God honoring plans that support and provide for our families and support the building of God’s Kingdom.

The Kentucky Baptist Foundation staff stands ready to assist you by providing private estate stewardship consultation. You may contact the Foundation’s trust counsel, Laurie Valentine, or me at our toll-free number (866) 489-3533.

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

Tuesday, July 14, 2015

Working Together

By: Richard Carnes- President & CEO 

In response to a question about success Henry Ford stated, “Coming together is a beginning; keeping together is progress; working together is success.” When I contemplate this quote, I see many ways Southern Baptists have lived this statement through thousands of Baptist churches and millions of Baptist members, by choosing to voluntarily cooperate and combine their efforts for the building of God’s Kingdom. One of the most obvious examples of this collaboration is the Cooperative Program. The Cooperative Program enables Southern Baptists to accomplish more for Christ together than we ever could on our own. Cooperative Program funds provide the foundational support for statewide, national and global missions and ministry efforts.

May I invite you to join a special group of individuals who have designated future gifts to this vital ministry funding source? These gifts will help ensure future missions, evangelistic, educational and care giving ministries and help enrich and save lives for many years to come. Your legacy gifts directed for the benefit of the Cooperative Program are an investment with eternal implications that will be working 24 hours a day, 365 days a year, to connect people all over the world to Jesus Christ.

As Southern Baptists, we can rejoice that we’ve “come together,” “kept together,” and “worked together” through the Cooperative Program. When you consider how you may choose to support the Cooperative Program, I encourage you to talk with your legal and tax advisors who can assist you in determining which legacy gift strategies best achieve your giving goals in light of your overall estate and financial plan. Some examples of these legacy gift plans include a bequest within your will, a beneficiary designation within your life insurance plan, a charitable remainder trust or a charitable gift annuity, just to name a few.

The Kentucky Baptist Foundation’s trust counsel, Laurie Valentine, and I are available to provide you additional information on the Cooperative Program and other Baptist causes which may be of interest to you. Call us at our toll-free number (866) 489-3533.

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.



Tuesday, June 30, 2015

What’s The Plan?

By: Richard Carnes- President & CEO

The most likely reason people fail to plan their finances, especially the preparation of an estate plan may fall into the category of “life just gets in the way.” For some it’s “I’m too busy,” for others it’s the uncomfortable idea of planning to die, and for another group their reason may be “no one can know the future,” so why plan if things are just going to change.

The reality is, if we develop a plan, for our family vacation, a party at our home, a career change, and yes, stewardship plans for our family and our finances, these events will all go more smoothly and our lives may be less stressful.

The Kentucky Baptist Foundation strives to fulfill its Christian service mandate to individuals through a variety of educational efforts. One of the ways this is done is through the presentation of educational seminars within your local church. Examples of the seminars are as follows:

Estate Planning Mistakes and Solutions – Discover what the ten biggest estate planning mistakes are and how to avoid them to assure your make the most of what you have.

Who Will Be In Charge If …? – Explores incapacity planning tools – powers of attorney, health care advanced directives, Living Trusts and what happens if no prior planning has been done.

Legacy Giving Ideas – Ways to give that benefit the giver as well as the charity – gifts of appreciated assets; gifts of life insurance and retirement assets; and life income gifts.

Ask A Lawyer – The Foundation’s attorney, Laurie Valentine, is ready to answer your estate planning, incapacity planning, long-term care planning and charitable gift planning questions and … there’s no “meter” running.

Ways To Make Gifts To Your Church – Estate stewardship giving ideas to encourage church members to take stewardship to a deeper level – what to give, how to give, and why we should give.

These topics and more are available as no-cost stewardship education seminars that can be conducted at your church. The Kentucky Baptist Foundation’s trust counsel, Laurie Valentine and I will welcome your invitation. For more information, please call us at (502) 489-3533 or toll free in KY at 1(866) 489-3533.

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

Thursday, June 18, 2015

Real Estate Gifts

By: Laurie Valentine- COO & Trust Counsel

Do you own a vacation home or other real estate you no longer want to use or manage? And, have you have been thinking about making a legacy gift to your church or other charitable cause? If your answer to both questions is “yes” consider using that real estate to accomplish your legacy giving objectives.

An outright charitable gift of real estate that has appreciated in value can provide double benefits----an immediate income tax deduction equal to the current market value of the property and avoidance of the capital gains tax you would owe if you sold the property.

If the property’s value has depreciated, a sale of it by you followed by a gift of all or a portion of the sale proceeds to charity may provide both a charitable contribution tax deduction and a capital loss deduction on your income tax return.

If you are not comfortable with giving up the full value of the real estate, a bargain sale to charity may be the answer. With a bargain sale you agree to sell the real estate to the charity for less than its current market value. The transaction is part charitable gift (the difference between the market value and the sale price) and part sale (the difference between the sale price and your cost basis in the property). You recognize capital gains on the sale portion of the transaction, but only for the difference between your cost basis in the property and the actual sale price. A charitable deduction is allowed for the value of the gift portion of the transaction.

For more information, please call us at (502) 489-3533 or toll free in KY at 1(866) 489-3533.

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.





Tuesday, June 16, 2015

Beginning The Journey

By: Richard Carnes- President & CEO

It is with great excitement and a tremendous sense of responsibility I begin my journey with the Kentucky Baptist Foundation. First I want to express humble gratitude to our Lord and Savior Jesus Christ for entrusting this Kingdom work assignment to me. I ask for your prayers that I will daily commit my energies to His work with all persons He brings into my path as I travel the Commonwealth of Kentucky, sharing the message of the Foundation and its legacy giving services.

Second, I wish to express appreciation to the Foundation’s search committee and its chairman Willis Henson, the Foundation’s Board of Directors and its chairman Charles Barnes, for their vote of confidence in offering me the opportunity to serve alongside them in leading the legacy stewardship ministry of the Foundation. The professionalism and thoroughness of their search process is a model that all organizations, both nonprofit and corporate businesses would be well served to emulate.

Also, I am honored to serve with an incredibly talented and committed group of Foundation staff, Janet McIntosh, Barbara Spencer, Katrina Umphrey and Laurie Valentine. Each of these ladies is dedicated to helping individual Kentucky Baptists who are seeking to live out their stewardship obedience to Jesus Christ through their legacy gift decisions.

I want to express my sincere thanks to all the current Kentucky Baptist Foundation clients, including individuals, churches, Baptist institutions and the KBC Mission Board that have entrusted the Foundation with the management and administration of funds to benefit the wide array of ministries being conducted by Southern Baptists across Kentucky, the United States and around the world.

As so ably stated many times by Dr. Barry Allen, the former president of the Foundation, “we look forward to extending to you the services of Kentucky Baptist Foundation, to facilitate the stewardship of that which the Lord has entrusted to you to use for His purposes.” What a great way to begin the “Journey”!

Richard Carnes is the president of the Kentucky Baptist Foundation, P O Box 436389, Louisville, KY 40253; toll-free (866) 489-3533; KyBaptistFoundation.org

Tuesday, June 9, 2015

12 Creative Giving Ideas for 2015- #6

By: Laurie Valentine- COO & Trust Counsel

Do you own a vacation home or other real estate you no longer want to use or manage? And, have you have been thinking about making a legacy gift to your church or other charitable cause? If your answer to both questions is “yes” consider using that real estate to accomplish your legacy giving objectives.

An outright gift of real estate that has appreciated in value can provide double benefits----an immediate income tax deduction equal to the current market value of the property and avoidance of the capital gains tax you would owe if you sold the property.

If the property’s value has depreciated, a sale of it followed by a gift of all or a portion of the sale proceeds may provide both a charitable contribution tax deduction and a capital loss deduction on your income tax return.

If you are not comfortable with giving up the full value of the real estate, a bargain sale to charity may be the answer. With a bargain sale you agree to sell the real estate to the charity for less than its current market value. The transaction is part charitable gift (the difference between the market value and the sale price) for which you may take an income tax deduction and part sale for which you realize capital gains only for the difference between your cost basis in the property and the actual sale price.

For more information, please call us at (502) 489-3533 or toll free in KY at 1(866) 489-3533.

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.