Tuesday, September 1, 2015

12 Creative Giving Ideas for 2015- #9

By Laurie Valentine- COO & Trust Counsel

Legacy giving not only offers a variety of ways to provide valuable support to charitable causes important to you, it can also help you solve personal financial challenges.

One such giving plan is a charitable remainder annuity trust (“CRAT”). A CRAT is an irrevocable trust that pays a fixed, never-changing income stream to the giver and/or others for life or a term of years and the remainder to one or more charities.

Your lifetime gift of cash, securities or real estate to a CRAT entitles you to a current charitable income tax deduction equal to the present value of the charity’s remainder interest. And, a CRAT can provide beneficial ways to solve a variety of financial challenges.

Help a grandchild with college expenses by creating a “term of years” CRAT. A gift of $50,000 to a 10% five-year CRAT will provide a grandchild $5,000 per year for 5 years (a total of $25,000) and the value of the charitable gift for income tax purposes is $25,900. If the trust assets earn an average annual total return of 7.0% over the five year trust term there will be almost $42,000 left to distribute to the charitable causes you name in the trust agreement.

A CRAT may be the right legacy giving plan to provide support to a family member. A gift of $50,000 to a two-life 5.0% CRAT allows you to set up a plan that would pay your family member $2,500 per year for the rest of their life and then that same amount would be paid to you for the rest of your life, if you survive the family member. The value of your deductible charitable gift depends on the age of the family member and you at the time you set up the gift.

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, August 25, 2015

Back To School

By: Richard Carnes

Late summer is always an exciting time for our children and young adults beginning to report back to schools and colleges across the state. The freshness of a new backpack, the wonder of a full box of sharpened crayons, and spring in the step of new athletic shoes all make for the beginning of their next educational adventure. But, for many budding young scholars, the hope of achieving their academic dreams is deferred due to their lack of sufficient financial resources.

The Kentucky Baptist Foundation has been honored to work with numerous donors whose passion is helping students receive the necessary financial support to achieve their educational goals. One example of this collaboration is the scholarship funds that donors have created to help off-set the costs of students’ education. For the upcoming academic year, the Kentucky Baptist Foundation had the privilege of awarding 77 scholarships to college and seminary students totaling $79,930 from the 17 scholarship endowments administered by the Foundation.

You may have this same passion and would like to explore how you can implement a legacy gift plan to fund a scholarship endowment like the ones referenced above. Or you may have a Christian school, college or Baptist seminary that you would like to support through a legacy gift.

The Kentucky Baptist Foundation staff is available to assist you by providing guidance in creating these scholarship funds and charitable endowments to support worthy Christian education causes across the state and the nation. You may contact the Foundation’s trust counsel, Laurie Valentine, or me at our toll-free number (866) 489-3533.

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

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, August 11, 2015

Watching Your Legacy

By: Richard Carnes- President & CEO 

Recently, my wife Karen and I had the great joy of caring for our 21 month old granddaughter while our son and daughter-in-law traveled on a weekend trip. We played, we hugged, we read bible stories and we ran around the house together, giggling and laughing all the way. As I listened to each new word and observed each new skill that she was developing, it became abundantly clear that I was observing a major piece of my unfolding legacy.

As I watched her and as she held my hand, walking ever so tentatively at times, it dawned on me that I was blessed to help her take the first of what will be millions of steps toward her own legacy. My heart nearly explodes with joy and desire to help her develop her potential and most importantly, come to her own personal relationship with Jesus.

I might also call this experience a part of investing for eternity. This type of investment includes passing on values, perpetuating traditions and promoting ideals for future generations. Each of us has the opportunity to incorporate this type of investing into our families and similarly into our churches and church related ministries. There are likely ministries you want to nurture and financially provide for, such as: mission endeavors, Christian education programs, children’s care, support efforts at your church and many other ministries for the building of God’s Kingdom.

As you watch the unfolding of your legacy, consider including charitable gifts in your estate and financial plans. This type of investing for eternity will assure that your generosity continues beyond your lifetime.

The Kentucky Baptist Foundation staff is available 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.

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

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, August 6, 2015

12 Creative Giving Ideas for 2015- #8

By: Laurie Valentine- COO & Trust Counsel

A charitable remainder unitrust (“CRUT”) is legacy giving plan that provides you and/or other family members a potentially growing distribution stream during the term of the trust, with the remainder set up to benefit one or more charities at the end of the trust term.

You set up a CRUT by creating an irrevocable trust and transferring cash, appreciated securities or real estate to it. The CRUT will pay you and/or others an amount each year equal to the payment rate designated in the trust agreement multiplied by the value of the trust assets, as revalued on January 1 each year. The minimum payment rate is 5%.

The trust term can be for the lives of the non-charitable “income” beneficiaries or a fixed term not to exceed 20 years.

The payment out to you and/or other non-charitable beneficiaries each year will vary---if the trust assets increase in value from one year to the next, the payment amount will increase; if the value goes down, the payment amount will decrease. The goal is to select a payment rate that will allow some growth in the value of the trust assets from year to year so that the payments grow, thereby creating a hedge against inflation over time in what you are receiving from the trust.

When the trust term ends, whatever remains in the trust is distributed to the charities you have named in the trust agreement.

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, 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.