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.

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.