Friday, December 15, 2017

Giving with Appreciation

By: Richard Carnes

Many individuals are reviewing their charitable contributions at the year end and considering how they could provide additional gifts to their church and ministry causes. Perhaps you would like to make gifts above what you give out of income as tithes and offerings to provide on-going support to additional Baptist causes.

One such way to achieve this giving is to use assets that have appreciated in value for making “above and beyond” gifts to support the Christian ministries that are important to you. If you have investment securities you have owned for more than a year that are worth more than the security cost, consider using this asset to make gifts.

Your deduction will actually be based on the full value of the security. In addition, you will not owe capital gains tax that would normally be due on a sale of the security.

Using an appreciated asset to make a gift to your church or other Baptist cause can result in a lower after-tax cost to make your gift than if you use the same amount of cash to make the donation. Savings from the charitable deduction and the bypass of capital gains can be considerable. How much you save depends on your actual income and capital gains tax rates.

The process of making gifts of appreciated securities need not be complicated. If your financial advisor holds the securities for your account, instruct that the security be electronically transferred to the financial account of the designated charity. This is often the most convenient way of making your gift.

When giving securities, including mutual funds, bonds, notes or mortgages, specific advice and instructions should be obtained from your financial advisor. Additional time should be allowed for completion of such gift transactions.

The Kentucky Baptist Foundation staff is honored to work with individuals seeking how best to make gifts of appreciated assets to their church and other Baptist causes. To learn more, you may contact the Foundation staff at our toll-free number (866) 489-3533.

Richard Carnes is president of the Kentucky Baptist Foundation

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, November 14, 2017

Legacy Giving Ministry

By: Richard Carnes

We often discuss with church leadership that the local church is the most overlooked charity in estate stewardship and legacy giving. It is not that church members are opposed to supporting the ministries and mission efforts of their church in this fashion. Rather, it is primarily due to the fact that most church members are never encouraged by their church leadership to consider giving a part of their estate to their church.

In most churches, the stewardship focus has been on tithes and offering giving that comes from members’ income and “liquid assets”, which may represent only a small portion of a member’s net worth. Certainly, it is good for the church to instill this discipline of current giving, but the discipline of financial stewardship should also include an attitude of legacy giving.

What is a legacy gift?

· It is a gift over and above tithes and offerings. It is a gift out of assets not out of income.

· It is a gift that can’t be put in the offering plate.

· It is a gift made in light of the giver’s overall estate and financial plans.

· It is a gift that uses tax-advantaged methods to accomplish the giver’s objectives.

· It is a gift that may require professional adviser assistance to complete the contribution.

Developing a coordinated legacy giving effort is how the church can equip its members to be Kingdom-minded with their resources. The legacy gifts that transpire from the churches’ stewardship education efforts will most certainly provide additional “above and beyond” financial resources that will permit the church to enhance and expand its programs and ministries.

As church leadership prays about its obligation to educate church members about the stewardship of legacy giving, the leadership should determine how legacy gifts will be used to further the church’s mission and what Kingdom impact will result from receiving legacy gifts.

How does a church get started in developing its personalized legacy giving ministry? An excellent first step is to contact the Kentucky Baptist Foundation. We welcome the opportunity to explain our legacy gift program development assistance. You may contact us 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.


Wednesday, November 8, 2017

A Christian’s Estate Plan

By: Richard Carnes

As with most things, the world’s way of approaching estate planning is profoundly different from God’s way. Estate planning affects literally everything we consider ours. Because of that, it is the single most important act of stewardship we will ever undertake.

Sometimes an event causes a person to confront their mortality, and they engage in introspection about their relationships and values. Possibly the person is stimulated to complete an estate plan they have long postponed and finally take the steps to ensure that their wishes are fulfilled. Maybe they start thinking about the ways they can use lifetime accumulations to make a difference for God’s Kingdom in the lives of the next generation.

As believers we understand that God is the owner of everything; in estate planning we are merely arranging to transfer stewardship responsibility, hopefully in a way that would please the One who has created and who owns all things. God said in Psalm 50:10-12, “… for every animal of the forest is mine, and the cattle on a thousand hills. I know every bird in the mountains, and the creatures of the field are mine.”

In preparing our estate we are faced with a number of fundamental considerations that go to the heart of creating an estate plan that reflects God’s priorities. How shall I provide for my family members? What kind of eternal impact do I want to make through ministries that have been important to me and my loved ones over the course of our lives?

A complete estate plan is an affirmation of the meaning of your life – what you ultimately value, your affections, and the ways in which you want your life to have made a difference for God’s Kingdom.

Because the tools and techniques available to the believer are equally available to the non-Christian, there can inherently be nothing about the tools themselves that make an estate plan “Christian”. Rather, it’s the design of the estate plan. It is the prayer and careful thought put into it that will determine how well it reflects Biblical priorities.

Call upon the Kentucky Baptist Foundation as a helpful partner in these vital planning decisions.

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, October 3, 2017

Estate Documents You Need

By: Richard Carnes

If you have an up-to-date will, congratulations, you are in rare company! Shockingly, almost 60% of Americans have no will at all. And, for the 40% of Americans that do have a will, only about 30% of this group have one that is up-to-date. This statistic translates into only 12% of Americans having an up-to-date will.

Your will is only one of the estate planning documents you need. The attorney who drafted your will may have prepared other necessary documents and explained them to you. Some of these documents also provide the opportunity to designate a charitable beneficiary. To be sure you have covered all the essentials, please review the following list of what you may need:

- Durable power of attorney, which authorizes someone to act on your behalf regarding financial matters if you are unable to do so.

- Directive to physicians (also called a “living will”), in case you are ever in a physical state where you cannot speak for yourself.

- List of recipients of tangible property. This list referenced in your will includes the people who are to receive specific items other than real estate and investments. Many types of tangible property can be donated to a charity as well.

- Revocable living trust. You may want to create a revocable living trust, especially if you own out-of-state real estate and/or want to provide for management of your assets.

- Beneficiary designations. Be sure to review the beneficiary designations of your retirement accounts, life insurance, bank accounts and investment accounts to make sure they reflect your current wishes and are coordinated with your will. A person may make a gift to their church, mission or special ministry by listing the charity within your beneficiary designations.

- List of assets, documents and records and where to find them. Include where to find passwords to digitally stored documents, which is an increasingly important part of an estate.

To make intentional plans to care for your family and the ministries God is inspiring you to support, call upon the Kentucky Baptist Foundation as a helpful partner. You may contact us 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; 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, September 19, 2017

Giving Through Kentucky Baptist Foundation

By: Laurie Valentine

For the past 23 years I have had the privilege, as Trust Counsel of the Kentucky Baptist Foundation, to encourage and educate Kentucky Baptists about how they can make a lasting difference for the cause of Christ in this world by using the Kentucky Baptist Foundation to accomplish their charitable giving objectives.

The Kentucky Baptist Foundation is the trust agency of the Kentucky Baptist Convention. It can receive gifts during your lifetime or at death for the support of all Kentucky Baptist and Southern Baptist causes. The Foundation, as a “member of the family”, has a special appreciation for the mission and ministry of the causes that will be supported through your gifts. This connection assures you, as the giver, the Foundation has each cause’s best interests in mind as it manages the gifts made for that cause’s benefit.

Many givers want to benefit more than one cause and realize that dividing their gift may result in lower total support. A single fund can be set up with the Kentucky Baptist Foundation to provide support to more than one Baptist cause. This can result in more consistent levels of support for all----each cause will have the benefit of the same level of competent investment management oversight services and the economies of centralized fund management.

Making the Kentucky Baptist Foundation the manager of your gift assures the causes you want to support are left to do what they were called to do---missions, Christian education, child care, evangelism, disaster relief, etc.

I encourage you to learn how you can practice your financial stewardship at a deeper level through the Kentucky Baptist Foundation.

For more information, contact the Kentucky Baptist Foundation at 502-489-3533 or 1-866-489-3533 (Toll-free, Kentucky only)

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, September 7, 2017

School Time!

By: Richard Carnes

The beginning of a school term is always an exciting time for our children and young adults as they return to school and college campuses across the commonwealth. I recently received pictures of my oldest granddaughter as she began her first day of preschool. There was a twinkle in her bright eyes and a tear in mine as I reflected on her blessed life so far. For my granddaughter, the beginning of her next educational adventure should be smooth. But, for many budding young scholars, the hope of achieving their academic dreams may be deferred due to a lack of sufficient financial resources.

The Kentucky Baptist Foundation is 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 56 scholarships to college and seminary students totaling $78,150 from the 17 scholarship endowments administered by the Foundation.

You may share this same commitment to helping students achieve their educational goals 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. To make intentional plans to care for your family and the ministries God is inspiring you to support, call upon the Kentucky Baptist Foundation as a helpful partner. If you have questions, please contact the Kentucky Baptist Foundation office 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 22, 2017

Life Insurance Giving Ideas

By: Laurie Valentine

Using life insurance for charitable giving 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 life insurance charitable gift. You can name the 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 at your death for which your estate would get an estate tax deduction.

Transferring ownership of a cash value 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 charitable giving through a life insurance gift.

Laurie Valentine is COO and Trust Counsel for the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; (502) 489-3533 or 1-866-489-3533 (Toll-free, Kentucky Only); 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.














Wednesday, August 9, 2017

Your Annual Gift – Forever

By: Richard Carnes

On any given Sunday, Baptist church members across the commonwealth of Kentucky give their regular tithes and offerings to their church and make contributions to Baptist ministry and mission causes that further the growth of God’s Kingdom across the world. Each of these great stewards is to be thanked for this act of faithfulness. Perhaps you have considered how to ensure that your support for these ministries continues indefinitely into the future; one way is to endow your gift.

To create an endowment, you would leave a certain sum of money or asset through your will or living trust, or perhaps name the charity as a beneficiary of a retirement plan or life insurance policy. That sum would be used to establish a fund benefitting the ministry cause as you have directed. The income distributed from the fund would be a continuation of your annual gifts.

How does this work? An organization like the Kentucky Baptist Foundation considers economic conditions when deciding on an appropriate distribution percentage. The total amount of the gift and this distribution percentage determine how much money will be distributed to your chosen cause on an annual basis. If for instance the distribution rate is set at 4 percent, then for each $1,000 annual gift you want to sustain, an endowment of $25,000 would be required. If you have been contributing $2,000 per year, an endowment of $50,000 would ensure an annual distribution of $2,000.

Ideally, the distribution percentage should be set so that the annual amount available for charitable purposes keeps pace with inflation. The goal is that over time the total return of the endowment will exceed the percentage distributed each year, which means that the endowment principal will grow – and annual distributions will increase accordingly. So, in a sense you will be an annual giver indefinitely, and thus ensure the ministry organization you value will continue to be supported.

To make intentional plans to care for your family and the ministries God is inspiring you to support, call upon the Kentucky Baptist Foundation as a helpful partner. If you have questions, please contact the Kentucky Baptist Foundation 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, July 25, 2017

Coordinated Estate Distribution

By: Laurie Valentine

To assure what you own at death will pass as efficiently and effectively as possible you must have (and maintain) a “coordinated” estate distribution plan.

Assets that are beneficiary-designated such as life insurance and retirement accounts will pass per the terms of the beneficiary designation document, not per the terms of your will or revocable living trust. Likewise, jointly-owned assets will pass to the surviving joint owner at your death, no matter what your will or trust says.

Only assets in your name alone or designated to be paid to your estate, your executor or the trustee of your trust will pass as your will or trust directs.

Failure to coordinate how assets will pass may result in a beneficiary receiving assets in a way you did not intend. For example: Your intention is for anything coming to your son from you at your death is to be held in trust for him until he reaches age 25. Your plan includes both a bequest to the trust for his benefit created in your will and a life insurance beneficiary designation naming your son as beneficiary. The bequest will be placed in trust, but the life insurance will be paid directly to your son, whether he has reached age 25 at the time of your death or not.

Make sure your plan is coordinated, and stays coordinated, by regularly reviewing how your assets are titled and how beneficiaries of life insurance, retirement accounts and possibly other assets are designated. Then compare asset titling and beneficiary designations with the terms of your will or trust.

Laurie Valentine is COO and Trust Counsel for the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; (502) 489-3533 or 1-866-489-3533 (Toll-free, Kentucky Only); 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.



Wednesday, July 12, 2017

Life Insurance: Ways to Give

By: Richard Carnes

People purchase life insurance for the following reasons:

· Income Replacement - which is especially important for younger couples with children who want to provide income for survivors in the event of premature death.

· Mortgage protection - to pay any mortgage balance due at death.

· Final Expenses - following a death when other sources of cash may not be available.

· Liquidity - particularly important in the case of a large estate with assets like a private business when money is needed for taxes and other expenses.

You Can Give Unneeded Life Insurance

With the passage of time, these needs for life insurance may no longer exist. The children have grown and left home, the mortgage has been paid, significant investments have accumulated, and either a business has been sold or a transition plan developed. In these cases, the insurance policy can make an excellent charitable gift.

If you are one of those with an insurance policy no longer needed for its original purpose, consider transferring ownership of it to a Baptist ministry or to the Foundation to create an endowment fund that will support the Baptist ministries of your choice. If the policy is paid up, you would receive a charitable deduction for the lesser of the replacement value and your cost basis (a value that can be provided by the insurance company). If you are still paying premiums, you would receive a charitable deduction for approximately the cash value of the policy and you would also receive deductions for premiums you subsequently pay.

You Can Name a Charitable Beneficiary

If you prefer to retain ownership in case your circumstances should change and you or your family might need the cash value or proceeds from the policy, you could name the charity as beneficiary but not policy owner. Although you would not receive a current income-tax deduction, your estate would be entitled to an estate-tax deduction for any proceeds paid to the charity.

A life insurance policy can be a great way to ensure a future gift to Baptist ministries. To learn more, 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, PO 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.






Wednesday, June 28, 2017

Lifetime IRA Giving

By: Laurie Valentine

While many IRA owners depend on distributions from their IRA to provide needed cash flow for their living expenses during retirement, some do not. And, for those who have other retirement income sources, having to take a “required minimum distribution” out of their IRA every year, once they turn 70 ½, results in unneeded income on which they must pay taxes.

The Charitable IRA Rollover tax law permits a person who is 70 ½ or older to make charitable gifts in any amount up to a total of $100,000 per year from a traditional or Roth IRA directly to qualified charities. Your church and our KBC and SBC agencies and institutions are “qualified charities”.

Distributions from 401(k), 403(b) or other types of retirement accounts are not eligible.

The IRA owner is not entitled to a charitable income tax deduction for the IRA charitable distributions, but those distributions are not included in the IRA owner’s income. They are, however, recognized as required minimum distributions that will reduce (or eliminate) the amount the IRA owner must pay themselves out of their IRA that year.

Charitable IRA Rollover distributions, for those that qualify, can be used as the source of your monthly tithes and offerings giving as well as for capital campaign and other “over and above” giving to your church and other charitable causes.

Use your required, but unneeded, IRA distributions for Kingdom advancement in a tax-wise manner by directing them to your church or other Christian cause.

Laurie Valentine is COO and Trust Counsel for the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; (502) 489-3533 or 1-866-489-3533 (Toll-free, Kentucky Only); 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, June 15, 2017

KBF Ambassadors

By: Richard Carnes

On March 8, 2017, the Kentucky Baptist Foundation (KBF) celebrated its 72nd anniversary of service to Kentucky Baptist individuals and ministries. Despite our strong history, we continually encounter Baptists who are unaware of our estate stewardship ministry. I am convinced the Foundation’s greatest challenges have been, and continue to be, our visibility, awareness, and understanding among Kentucky Baptists.

From the beginning of the Foundation’s ministry, its’ Core Convictions have been:

1. God is creator and owner of all things and we are called to be His stewards (managers).

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

3. Through estate stewardship, each of us can impact the world for Christ.

4. To be successful in reaching their communities and the world for Christ, churches must be equipped to cultivate and secure legacy gifts their members are inspired to give.

One way we plan to increase our visibility is with a new initiative --- the KBF Ambassador Program. The Ambassador Program’s purpose is to create a network of ministerial and lay leaders who will enhance the visibility and awareness of the Foundation’s ministry and services by serving as the Foundation’s cheerleaders and encouragers in their congregations and communities.

Ambassadors in the KBF program will have the opportunity to become knowledgeable of the Foundation’s ministry and services and recommend the Foundation’s services to individuals or churches who have needs that the KBF may be able to meet. Foundation staff and board member representatives will provide education sessions on the Foundation’s ministries at regional sessions in the coming months.

We strongly believe this volunteer ministry will produce significant resources to assist local Baptist churches in reaching our communities and our world for Christ. Please prayerfully consider becoming a member of this new group of Kentucky Baptist men and women. Your efforts through KBF Ambassadors may help encourage and educate your friends in effective ways to provide for their families and Kingdom work.

To learn more about the KBF’s Ambassador Program, 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, PO 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, June 1, 2017

Legacy Gift Designation

By: Richard Carnes

You may be hesitating to make a legacy gift to your church because you don’t want to incur the expense of changing your will. Actually, there are numerous ways to arrange a future gift while leaving your current will intact.

1. You can name your church or other Baptist ministry as a beneficiary of any portion of the death proceeds from a life insurance policy.

2. You can instruct your bank to distribute any portion of what remains in your account to your church or ministry at the end of your life. This is called a payable-on-death (POD) account.

3. You can instruct your investment advisor firm to transfer to your church or ministry any portion of investments held at the end of your life. This is called a transfer-on-death (TOD) account.

4. You can name your church or ministry as a beneficiary of any percentage of the remaining funds in your IRA, 401(k), 403(b), or other defined contribution retirement plan.

In each case, you need only request and complete the beneficiary form provided by the financial institution. When a church or ministry is named as beneficiary through one of these arrangements, the proceeds are not governed by your will and are not subject to probate.

However, like the provisions in a will, these beneficiary designations can be changed at any time. You need only complete a new beneficiary form. Adding or removing a charitable bequest requires a will change, though you could do this with a simple codicil (amendment) if the rest of the will still expresses your wishes.

A charitable gift by beneficiary designation, like a bequest in a will, qualifies for an estate-tax charitable deduction and could result in estate-tax savings, depending on the size of your estate.

Increasingly, estate assets are transferred to beneficiaries outside of a will. The Kentucky Baptist Foundation is honored to work with individuals seeking how best to designate estate assets they wish to gift to their church or other Baptist ministry causes. To learn more, 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, PO 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.

Wednesday, May 17, 2017

Perpetuate Your Tithe

By: Laurie Valentine

Tithing is part of our Christian stewardship responsibilities. It is a discipline practiced by many all of their lives and it is vital to the continued viability of the programs and ministries of our churches.

When you die, will there be someone to “step into your shoes” to provide the funds your tithe has been providing to your church?

To assure your church will have the financial resources it needs, until the Lord returns, consider including in your estate plan a provision for the creation, at your death, of an endowment fund for the benefit of your church. Or, establish an endowment fund now to which you can make modest gifts at regular intervals during your life with provision in your estate plan for a final gift to the endowment at your death.

To create an endowment fund large enough to have sufficient earnings to fund your tithe in perpetuity requires a gift at your death (or a combination of gifts during life and at your death) equal to approximately 25 times your current annual tithe. This assumes an annual distribution rate of 4.0%.

For example, if the current amount you tithe each year is $2,000, the endowment would need to have $50,000 in it ($2,000 x 25) by the time you die. Assuming the endowment is invested to grow its value over time, the amount it will distribute to your church will also grow over time.

Assure your tithe will provide support until the Lord returns by endowing it.

Laurie Valentine is COO and Trust Counsel for the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; (502) 489-3533 or 1-866-489-3533 (Toll-free, Kentucky Only); 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, May 2, 2017

Four Questions When Planning a Charitable Gift

By: Richard Carnes

Have you ever considered making a legacy gift to your church or other Kentucky Baptist ministry causes? You are to be commended for your desire to build God’s Kingdom through these ministry organizations. To help plan your gift, we suggest you ask yourself the following four questions:

WHAT ASSET SHALL I GIVE?

When making a regular monthly contribution, you will likely write a check or make a cash contribution out of your income. However, if you are contributing a larger amount, cash is not necessarily the best asset. You may realize a greater tax benefit if you contribute appreciated securities—such as stocks, bonds and mutual funds—because you receive not only a charitable deduction for the market value of the contributed asset but also avoid taxation of the capital gain.

WHEN WILL I MAKE MY GIFT?

You may hesitate to make a major outright gift because you do not know what the future holds. You want to be sure you will have enough resources for prolonged care, should that be necessary, or to respond to family members who need assistance. In such cases, you may arrange the gift now but have it become effective at the end of your life.

HOW WILL I MAKE MY GIFT?

Fundamentally there are three ways to make a gift:
  1. You can give the property outright.
  2. You can arrange a future gift but retain ownership of the asset and the right to change your mind, such as through your will or a beneficiary designation. 
  3. You can transfer an asset and retain an income from it through an instrument such as a charitable remainder trust or a charitable gift annuity. 

FOR WHAT PURPOSE SHALL I MAKE MY GIFT?

You may choose to make a gift with no restrictions, allowing it to be used where it is most needed. Or, you may designate the gift for a particular purpose – such as a specific mission program, or an endowment fund.

For further assistance in answering these questions, please contact the Kentucky Baptist 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, April 18, 2017

Planning for Incapacity

By: Laurie Valentine

Estate planning is part of our Christian stewardship responsibilities. Being a good steward requires you not only plan how your assets will be distributed at death, but also how personal and financial matters will be handled in the event you become incapacitated as the result of a stroke, accident or illness such as dementia.

“Incapacity planning” must be done while you have the mental capacity to understand what you are doing. It requires careful consideration of your particular situation to best assure that the documents used and the powers granted would enable the person you are empowering to do all that needs to be done on your behalf.

A key incapacity planning document is the durable power of attorney (“DPOA”). A power of attorney is “durable” if it states: “this power of attorney shall not be affected by the disability of the principal” or words to that effect. If those words are not in the power of attorney document it cannot be used if you become incapacitated.

Both financial management powers and personal decision-making authority can be granted under a DPOA. Certain powers must be specifically granted for the person you are empowering (your “attorney-in-fact”) to have the authority to take the designated action.

Including healthcare decision-making powers makes the DPOA a “full service” incapacity planning document.

Without prior incapacity planning an expensive and time-consuming court-monitored guardianship may be the only way someone can gain authority to manage your affairs and make decisions for you if you become incapacitated.

Be a good steward and plan for your potential future incapacity now!

Laurie Valentine is COO and Trust Counsel for the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; (502) 489-3533 or 1-866-489-3533 (Toll-free, Kentucky Only); 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, April 4, 2017

Four Reasons An Estate Plan Is Beneficial For Everyone

It is common for people to consider how they will eventually like their assets distributed among loved ones and ministry organizations. But perhaps you have not developed a comprehensive estate plan because you think that is necessary only for the extremely wealthy. In actuality, the need for estate planning applies to everyone. A smaller estate requires even more care to avoid unnecessary expenses and retain the maximum resources for fulfilling your personal, financial, and charitable goals. Here are four key reasons why you should establish an estate plan:

1. Defining Care For Yourself – A healthcare proxy, power of attorney, and living will define how you wish to be cared for should you ever experience a period of incapacity.

2. Creating Financial Security – A will allows you to direct how you want your assets distributed and to whom, regardless of the amount. If you don’t have a personal will, state laws will determine who receives your assets.

3. Naming Guardians – If you have minor children, it’s important to make written arrangements for their care. A will is the only legally recognized way to name a person you would like to entrust with the care of your children.

4. Naming Beneficiaries – Your estate plan includes filling out beneficiary forms for assets such as insurance policies and retirement accounts. You should review your designated beneficiaries after major life events. You can also name a charitable organization as a primary beneficiary or contingent beneficiary within your plan.

A well-crafted estate plan benefits you, your loved ones, and the ministry causes you care about. Everyone needs to complete the four steps described above. Because no two situations are alike, the best course of action is to have your financial advisor and estate planning attorney review the details with you and help craft your estate plan. To make intentional plans to care for your family and the ministries God is inspiring you to support, call upon the Kentucky Baptist Foundation as a helpful partner. If you have questions, please contact the Kentucky Baptist 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, PO 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, March 21, 2017

Flexible Perpetual Support

By: Laurie Valentine

Is there a particular program or ministry at your church, or at a KBC- or SBC-related agency or institution, you would like to support on an on-going basis? One way to do that is to create a perpetual support (endowment) fund, the earnings of which will be used for support of the program or ministry.

The problem with that plan is you may not be able to make a single gift large enough to produce the earnings needed to start or continue the operations of the program or ministry.

The solution…a “flexible endowment fund; an arrangement under which you agree to establish an endowment fund that will, once fully funded, generate sufficient earnings to support the program or ministry in perpetuity. The total principal gift amount will depend on the financial support needed to run the program or ministry and how much of that support you wish to provide through the endowment fund. A timetable for completing the funding of the principal is agreed upon, but there is no actual schedule of payments---when you make the principal gifts during the funding period is up to you.

In addition to your agreement to make principal gifts, you also agree to provide annual “spendable” gifts to the program or ministry so that it will have the funds to operate while you complete the principal funding. The amount of your spendable gift each year is the difference between the earnings generated by the partially-funded endowment and the portion of the annual cost of the program or ministry you have agreed to support.

Flexible endowment funds---a way to provide both immediate and perpetual support for a program or ministry important to you.

Laurie Valentine is COO and Trust Counsel for the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; (502) 489-3533 or 1-866-489-3533 (Toll-free, Kentucky Only); 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, March 7, 2017

Your Estate-Planning Team

By: Richard Carnes

Because estate planning is a comprehensive matter that involves all areas of your financial life it is unlikely that any one person or resource will meet all of your estate-planning needs. It is more likely that you will want a team of advisors to guide and assist you with various aspects of your planning and will want to consider the following “members” for your team:

Attorney: A lawyer skilled in estate planning is essential. Your attorney will help you create the primary building blocks for your estate plan, such as a will or trust, to fulfill your objectives.

Accountant: Along with your attorney, your accountant will pinpoint important tax issues and help develop plans to deal effectively with them.

Investment Advisor: A good investment advisor can be invaluable as you work to build and preserve your asset base. Your investment advisor can be most effective when he or she knows and understands your overall goals and objectives and works with the other team members to achieve them.

Charitable Gift Planner: Professionals with experience in gift planning, such as Laurie Valentine, trust counsel for the Kentucky Baptist Foundation, can suggest ways to meet your charitable goals that work with and enhance your personal and family goals.

Bank/Trust Officer: You may need management assistance to carry out your plan. A good relationship with a banker or trust officer can be a great advantage in making your plan work.

Insurance Professional: Protection is a crucial aspect of any plan. Competent insurance professionals can make sure all your risks are adequately addressed.

Estate planning is a lifelong process that continues through the accumulation, preservation, and distribution phases of your financial life. You have the opportunity, as a faithful steward of resources God has entrusted to you, to provide for your family members, and Christian ministry causes important to you through thoughtful planning. The staff of the Kentucky Baptist Foundation would be honored to be a part of your estate-planning team. If you have questions, please 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.

Wednesday, February 22, 2017

Gift Plans that Benefit Family & Charity

By: Laurie Valentine

Charitable gift planning not only provides a variety of ways for you to provide valuable support to causes that are important to you, it can also help you solve certain personal financial challenges.

One such giving plan is a charitable remainder unitrust (“CRUT”). A CRUT is an irrevocable trust that pays a designated income stream to the giver and/or others for life or a term of years and the remainder to one or more charitable organizations.

A CRUT can provide beneficial ways to solve a variety of financial challenges such as:

Providing Funds for College: Your grandson is starting college this fall and you would like to help with his expenses. A gift of $100,000 to a CRUT that will pay him 15% of the value of the trust assets for 5 years will provide the following benefits: a $45,000 charitable income tax deduction for you; payments averaging $12,400 each year to your grandson; and, at the end of the 5-year trust term, approximately $61,000 (assuming a 6.2% average annual return) left to distribute to the charities you named in the trust agreement.

Financial Assistance for Family Members: You have been providing $500 per month ($6,000 per year) to your 85-year-old father for the past few years. While, at age 65, you have no current health problems, you want to make sure that support would continue for your father, no matter what your future circumstances. A gift of $100,000 to a CRUT paying your father for his lifetime and then you, if you survive him, 6% of the value of the trust assets, as revalued annually, establishes a plan that will provide a gradually growing stream of income to your father, and then you. It also entitles you to an income tax deduction of approximately $36,845 and provides you the opportunity to set up a gift that will provide significant future support to ministries that are important to you.

Laurie Valentine is COO and Trust Counsel for the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; (502) 489-3533 or 1-866-489-3533 (Toll-free, Kentucky Only); 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, February 9, 2017

A Gift of Love

By: Richard Carnes
February is filled with reminders to express our love and affection to those close to us. We may express this affection through romantic greeting cards, bouquets of red roses, abundant chocolate, and candle lite dinners. All of these gestures can be memorable but they are temporary in nature.

A lasting way to say “I love you” is by making provision to care for your loved ones, yourself and charities important to you through creating a written estate plan. Knowing where to begin, what to look for, and what you might expect can help turn this task into an effective plan. A great place to start the process of creating an estate plan that reflects your goals and values is through the Kentucky Baptist Foundation’s Estate Plan Organizer, located on our website, KYBaptistFoundation.org. The Estate Plan Organizer will take you through the estate planning process easily and at your own pace. The whole process can be completed in as few as 30 minutes and you can save your work at any time and return to the Organizer at your convenience.

When you have completed the Organizer, you will have a well thought out design for your estate that reflects your priorities. You will then be well prepared to work with your attorney and financial advisors, who will assist you in structuring an estate and financial plan that best achieves your goals.

An estate plan may not be a glamorous gift, but it is a valuable gift… a gift of love.

The Kentucky Baptist Foundation is honored to work with individuals seeking how best to organize their estate planning goals to achieve their personal and charitable objectives, to support their families, their church and other Baptist causes. To learn more, 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, PO 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, January 24, 2017

Time For Some Estate Plan Changes?

By: Laurie Valentine

Keeping up with the details of life and changes in our lives takes more time than most of us give it. For many of us, we are so busy watching and planning around the changes occurring at work or school we don’t take time to consider changes that may be occurring in our day-to-day lives and the impact of those changes on planning we have done.

Estate planning is one area of personal planning that doesn’t get a lot of “revisiting”. Your estate plan---your will, power of attorney, health care advanced directives, and beneficiary designations---should be reviewed on a regular basis to make sure it continues to accomplish your planning objectives. Your plan should also be revisited when there are changes in your life and/or that of your family---marriages, births, deaths, divorces, change in state residence, changes in financial status.

Focus on the following as your review your plan:

Fiduciaries. Are the persons you’ve named to serve as executor under your will or successor trustee of your living trust still willing and able to serve? Are you and your spouse still comfortable with the persons you have named to serve as guardians for your children? Is the person named to act under your power of attorney still willing and able to do that?

Beneficiaries. Have there been deaths or births not considered when you had your will or living trust prepared? Have you or one of your beneficiaries married or divorced since then? Do you have an ultimate beneficiary(s) named to receive your estate if all of your family dies before you?

Death Benefits. Are beneficiary designations of life insurance, retirement or IRA benefits coordinated with the plan of distribution under your will or trust?

Assets. Has the value of your estate changed?

Laurie Valentine is COO and Trust Counsel for the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; (502) 489-3533 or 1-866-489-3533 (Toll-free, Kentucky Only); 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, January 10, 2017

Why Do You Need A Will?

By: Richard Carnes

Jane Bryant Quinn, a nationally known personal finance commentator, was asked why a person needs a Will. Ms. Quinn answered with the following common sense reply: “You own stuff; you will die; someone will get your stuff.” This response is certainly a good reason to have a personal Last Will and Testament, but there are several additional reasons for preparing your personal Will:

· To be a good steward – a good estate plan reduces death taxes and probate expenses, leaving more for you to pass to your family and charitable causes at your death.

· To avoid the “Will” the state has written for you – Kentucky’s “Intestate Succession Statute” – the state’s plan of asset distribution may not meet your family’s needs or accomplish your estate planning objectives.

· To retain input - Making a Will allows you to determine who will get your “stuff” (your assets) and how the recipients will receive your “stuff” at your death.

· Making a Will allows you to designate whom you want to be appointed as guardian for your children if both parents die before your children reach age 18.

· Making a Will assures smooth administration (probate) of your estate at your death.

· Making a Will allows you to name an executor who will handle the tasks of determining what you own at death, paying your final debts and expenses, managing the assets in your estate, preparing all required tax returns and distributing your assets as your Will directs.

The Kentucky Baptist Foundation’s “Estate Planning Mistakes and Solutions” seminar can provide more answers about why you need a Will. Contact Richard Carnes at richard.carnes@kybaptist.org to schedule this one hour, free seminar at your church.

Also, if you have questions about Christian estate planning strategies or want to request a private estate stewardship consultation, please contact the Kentucky Baptist Foundation’s trust counsel, Laurie Valentine at laurie.valentine@kybaptist.org or call the Foundation’s 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.