Twice Blessed

By: Richard Carnes

As I sit here in my temporary home work space, as many of you are during the COVID-19 virus outbreak, I’ve reflected on what final words I want to express in my last column as President of the Kentucky Baptist Foundation. I am a fortunate individual that has been blessed, not once but twice, to serve in an executive leadership role with the Kentucky Baptist Foundation. The opportunity to serve my Lord and Savior Jesus Christ through this legacy stewardship ministry and to be a fellow servant with the KBF board of directors and my staff colleagues is an honor and privilege I will forever cherish.

I want to take the next few moments to express appreciation to several significant relationships and parties. First, I want to express appreciation to the 17 members of the KBF Board of Directors, for their steadfast support, wisdom, and encouragement in directing the financial ministry of the Foundation.

I also want to express appreciation to a dedicated KBF staff I’ve been honored to serve with as colleagues. They are a solid group of professionals who foster a wonderful atmosphere of collegiality and exhibit a commitment to serve every one of our clients in a Christ honoring way. They’ve been a constant blessing to me.

As well I want to express appreciation to KBC Executive Director Dr. Todd Gray and all the KBC Mission Board leadership for the strong partnership support we have with the KBC in serving Kentucky Baptists.

I especially want to express thanks to our donors and clients, who through the past 75 years have called upon the services of the KBF and created funds through the Foundation. Their generosity has enabled us to distribute in excess of $194 million during these 75 years, to Baptist ministry causes as directed by these faithful donors and clients.

I’m happy to report the Foundation is sound and stands on solid footing through this very uncertain period in our country as we confront the COVID-19 pandemic. Yes, we’ve all taken a bit of a punch, and it may have knocked a little wind out of us, but we’re still standing, we’re still in the arena, and we continue to proclaim the great Good News that Christ is on the throne and reigns eternal. I’m so proud of our Kentucky Baptist churches and the way they have used this pandemic circumstance to expand the communication of the Gospel and literally taken the message outside the four walls of the church and into the community through creative technology.

I look forward to the advancement of the KBF’s legacy stewardship ministry, and I know the next president will be equally blessed with the opportunity to serve such a special group of people called Kentucky Baptists!

Richard Carnes is retiring as president of the Kentucky Baptist Foundation on June 30th, 2020.

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.

A Place to Start

By: Richard Carnes

When working with individuals seeking guidance from the Kentucky Baptist Foundation, we are often asked for suggestions on how best to begin a person’s estate planning process. We suggest using the following four steps as a framework for organizing your thoughts.

People

The people in your life are central to the planning process. List those individuals for whom you are now financially responsible and those whom you would like to assist in the future. This is also the place where you could list your church, and other Christian ministry causes as part of your “family.”

Property

Next, we suggest listing your property. Think of everything you own, including financial assets and tangible property. Begin with income from all sources (salary, investments, rental property, etc.) Also include any current balances in pension plans, individual retirement accounts (IRA’s), 401K plans and other retirement plans. Beside each asset, list its current value. Next to its value, list its cost. Finally, note whether it is owned outright or with others.

Plans

Your plans begin to take shape as you review the list of persons and consider how you wish to provide for them. Study the various assets you listed to determine which ones may match the needs of each person or charitable cause you identified as important to you.

Planners

At the top of the list of planners will often be an attorney and an accountant. Your attorney drafts your will and other legal documents. Your accountant can provide valuable advice on tax matters as well as other estate planning issues, in consultation with your attorney. Others who may participate include life insurance professionals, financial planners, real estate professionals and trust officers.

The Kentucky Baptist Foundation is honored to work with individuals seeking how best to organize their planning goals to achieve their personal and charitable objectives, to support their families, their church and other Baptist causes.

To learn more, call upon the Kentucky Baptist Foundation as a helpful partner.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; www.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.

The Secure Act and the Charitable IRA Rollover Gift (QCD)

By: Richard Carnes

The “Setting Every Community Up for Retirement Enhancement” Act, aka the SECURE Act, was signed into law on December 20, 2019. The SECURE Act, which went into effect on January 1, 2020, changes many of the rules governing retirement plans, including several provisions relevant to making charitable IRA rollover gifts (also known as qualified charitable distributions or QCDs.)

Under the SECURE Act, the charitable IRA rollover, or QCD, remains a terrific way to make a tax-free gift to your church and Baptist ministries using your traditional IRA.

How Do I Qualify?

· You must be 70½ years old or older at the time of the gift

· Gifts must go directly from your IRA to the qualified charity

· Gifts must come from a traditional or Roth IRA account

· Gifts cannot exceed $100,000 per donor per year

· You cannot receive a benefit in return for your gift, such as tickets to a gala

Benefits of a Charitable IRA Rollover Gift (QCD)

The SECURE Act increased the age at which you must start taking required minimum distributions (RMDs) from 70½ to 72. Once you reach 72, one of the great benefits of a QCD is that it will count towards your RMD. However, even if you have not reached age 72, there are still good reasons to consider a QCD at 70½. First, a QCD offers all the benefits of an income tax charitable deduction, even if you don’t itemize your deductions. You can’t claim a deduction for your QCD, but your QCD is not included in your income. Your QCD is always a tax-free gift.

Another change brought on by the SECURE Act is the elimination of the stretch IRA for many beneficiaries. With a few exceptions, children and other non-spouses who are more than 10 years younger than you no longer can stretch their withdrawals from an IRA they inherit from you over their life expectancy. Instead, they must withdraw and pay income tax on all funds within 10 years. This change means that it may be most tax efficient for you to support Baptist ministries and provide for your heirs by making QCDs during your life and setting aside other assets to pass on to your loved ones.

To learn more, call upon the Kentucky Baptist Foundation as a helpful partner.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; www.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.

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 greeting cards, bouquets of flowers and candle lite dinners. All 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, call upon the Kentucky Baptist Foundation as a helpful partner.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; www.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.

Life Decisions

When composing or updating wills and estate documents, a couple will naturally discuss how to divide their estate. Many questions arise during these discussions. Do you leave equal amounts to your children? Will each child be a wise steward of the inheritance or have they proven irresponsible with money? Do you include any provisions for legacy gifts to the charities with which you are connected?

These are difficult questions, and adults often delay creating or updating a will to avoid answering them. As we wrestle with these questions, keep the following in mind:

• During their lifetimes, parents often give unequal amounts to children based on different needs – but they hesitate to leave unequal bequests, for they don’t want their last words to seem to convey unequal affection. 
• If you do plan to leave unequal bequests to your children, talk to them while you are living: explain what you are doing and why. 
• You can treat children and family members fairly without providing for them in the same way. For example, a prudent way to provide for a family member who is unsophisticated with money is through a trust from which the family member will receive regular income but have limited access to principal of the trust. 
• Your Christian values can be a part of your estate legacy. By including Christian ministries in your estate plan, you set an example to your family and community of your commitment as a Christ follower. 

The Kentucky Baptist Foundation staff works to help clients achieve their personal and charitable goals, including how to provide for their families and support their church and other Baptist causes. We cannot relieve you of the hard choices you have to make when dividing your estate among children and other family members, but we can assist you with ways to make estate gifts to fulfill your family and charitable objectives. To make intentional plans for your family and the ministries God is inspiring you to support, call upon the Kentucky Baptist Foundation as a helpful partner.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; www.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 Christmas Gift – Forever

By: Richard Carnes

During this special time of the year, we celebrate the love God lavished on us through the gift of the Christ child. Christians, inspired to share this eternal story of Good News, give of their time, energy and finances to carry this Christmas message to all the nations. During this season, Baptist church members across the commonwealth of Kentucky give their financial support to special mission offerings such as the Lottie Moon Christmas Offering to 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 wondered how to ensure that your support for these mission ministries can continue 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 ministry 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.

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.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; www.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.

Year End Giving

By: Richard Carnes

Making charitable gifts is both an opportunity to express thankfulness for the blessings of life and an opportunity to make a difference in your community through a favorite charitable ministry. It’s also an excellent way to reduce your tax obligation for the year.

A tax deduction for charitable giving isn’t guaranteed just because you’re generous. As with everything in tax law, it’s important to follow the rules. By doing so, you can help ensure that your donations result in maximum benefits for you and the charitable ministries you support through your gifts.

The Internal Revenue Service offers the following reminders to help taxpayers plan their gifts to charity:

· Qualified charities. Only donations to eligible organizations are tax-deductible. Select Check, a searchable online tool available on IRS.gov, lists most organizations that are eligible to receive deductible contributions. In addition, churches are eligible to receive deductible donations. That is true even if they are not listed in the tool’s database.

· Year-end gifts. Contributions are deductible in the year made. Donations by check count for 2019 as long as they are mailed in 2019. Also, donations charged to a credit card before the end of 2019 count for 2019, even if the credit card bill isn’t paid until 2020.

· Itemize deductions. For individuals, only taxpayers who itemize their deductions on Form 1040 Schedule A can claim deductions for charitable contributions. This deduction is not available to individuals who choose the standard deduction.

· Record donations. The long-standing requirement of the IRS is that a taxpayer obtain an acknowledgement from a charity for each deductible donation (either cash or property) of $250 or more. Also, be aware that additional rules apply for a property contribution of $250 or more.

As you begin to look beyond 2019, you may also wish to consider arranging for future charitable gifts that result in immediate tax and other financial benefits. By doing so, you may be able to enjoy tax savings, increased income and other financial advantages today while providing for a significant charitable gift to a favorite Baptist ministry as part of your long-range planning.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; www.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.

Striving Together for 75 Years

By: Richard Carnes

As we prepare to enter 2020, the Kentucky Baptist Foundation looks forward to celebrating its 75thanniversary as the Kentucky Baptist Convention’s trust agency. Throughout this long history, the foundation has been Striving Side by Side for Christ’s Kingdom by assisting Kentucky Baptists in financial stewardship education and the management of financial resources entrusted to it by donors and clients.

Many church leaders are realizing that for churches to be successful in reaching their communities for Christ, churches must be equipped to educate their members about the opportunities for legacy giving, utilizing their non-cash assets, which on average represent 91 percent of a person’s net worth.

The great news for church leaders is they are not alone in providing this type of Christian estate stewardship training for their members. The foundation helps facilitate this training of church members to become more “Kingdom-minded” by conducting educational seminars on financial and estate planning topics at your church. This educational resource is provided by the foundation at no cost to Kentucky Baptist churches.

An additional resource to church members is the private confidential consultation service available to Kentucky Baptists through the expertise of Austin Wilkerson, the foundation’s trust counsel. Through these foundation ministries, Kentucky Baptist individuals and families have a valuable resource available to assist them in fulfilling their stewardship obedience to the Lord, which will facilitate their opportunities to share Christ with those who do not know Him.

As the Kentucky Baptist Foundation board of directors and staff Strive Side by Sidein its financial stewardship ministry, we shall continue to take seriously our fiduciary duty as the trust agency of the Kentucky Baptist Convention. We are honored to serve alongside the KBC to be the development agency for its churches, the Cooperative Program, associations and other KBC causes.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; www.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.

Equipping Church Leaders

By: Richard Carnes 

As the development agency for Kentucky Baptist churches, the Kentucky Baptist Foundation (KBF) helps equip a church’s staff and lay leadership on effective ways to implement intentional legacy planning programs for church members. It is imperative that churches educate and encourage their members to see their financial stewardship more broadly than just the donation they place into the offering plate. This stewardship training extends to planning the utilization of all the financial resources entrusted to church members for the benefit of their family, their church, and Kingdom causes.

Church leaders can make great strides in impacting the financial well-being of church member’s families and the well-being of the church’s ministries by scheduling teaching opportunities for their church members on how to become “Kingdom -minded” stewards. The great news for church leaders is they are not alone in providing this type of Christian estate stewardship training for their members. The KBF helps facilitate this training of church members to become more “Kingdom-minded” by conducting educational seminars on financial and estate planning topics at your church. This stewardship resource is provided by the KBF at no cost to Kentucky Baptist churches.

Some examples of frequently requested seminars are:

Estate Planning Mistakes and Solutions- Discover what the ten biggest estate planning mistakes are and how to avoid them to assure you manage your finances wisely.

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.

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 as Christians should give.

As your church begins to plan its Fall series of education and training for Wednesday evenings, Sunday evenings or the Sunday morning Sunday School hour, please consider inviting KBF staff to conduct a seminar session at your church. We welcome your contact to request the KBF’s full list of legacy planning topics and to schedule a seminar date.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; www.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.

Preparing for the Future

By: Richard Carnes

Scripture and life experiences teach that there are important differences between capital and income. Income is earned on a regular basis and is spent meeting daily needs. Unspent income typically becomes part of our capital and is invested in savings accounts, houses, retirement accounts, businesses and more. We work hard to accumulate sufficient capital over our working years to enable us to live off the income the capital produces when we cease working to earn a regular salary.

Another word for capital might be “endowment”. An endowment is simply a collection of assets that are invested to produce income that can be used for personal or charitable purposes. We most commonly think of endowment as financial assets and investments, but the Old Testament contains significant examples of God using capital to advance His Kingdom. In reading Genesis 41 we learn of a time early in Israel’s history when God used Joseph to advise the king of Egypt to store grain in anticipation of a looming seven years of famine. God inspired Joseph, and this grain storage became an endowment that kept the people from starvation. From this saved population descended the Savior of the world.

As we evaluate what God has entrusted to us in the way of capital assets within our estates, we must acknowledge the three possible destinations for our assets. We can transfer assets to loved ones, to Christian ministries that have significantly impacted our lives, or we can endow the U.S. Government through taxes paid to the Internal Revenue Service. Fortunately, many faithful Baptists are looking at the ministries of their churches and prayerfully considering what God is inspiring them to do. Individuals can help sustain Christian ministries during a time when their local church may experience a “famine” of financial support for regular ministry efforts.

Your Kentucky Baptist Foundation is available to assist you and your church prepare for the future. We welcome your questions.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; www.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.

Working Together

By: Richard Carnes 

God in his perfect wisdom, created people for relationship with him and to live and work in relationship with each other. 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. What a God inspired example of working in relationship with each other!

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 Kentucky Baptist Foundation staff and 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.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; www.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.

Announcing Retirement of Kentucky Baptist Foundation President Richard Carnes

Richard Carnes, President & CEO, of the Kentucky Baptist Foundation has announced his intention to retire a year from now, effective June 30, 2020, after completing 12 years of service to Kentucky Baptists. Carnes served as the Foundation President and CEO from 1988 to 1995 and has currently served a second term beginning in 2015 as its President and CEO. Mr. Carnes had also served with the Kentucky Baptist Convention Mission Board financial staff from 1982 until 1988.

Mr. Carnes stated, “I am a fortunate individual that has been blessed, not once but twice, to serve in an executive leadership role with the Kentucky Baptist Foundation. The opportunity to serve my Lord and Savior through this stewardship ministry and to be a fellow servant with tremendous men and women of the Foundation Board is an honor and a privilege that I will forever cherish.”

“Each executive, at their own time, begins to contemplate when the baton of leadership should be passed and personal retirement from the daily leadership responsibilities of the office should occur. My wife Karen and I have actively prayed about this decision for several months. As the personal sense of rightness of this decision began to solidify in my heart and mind, I decided this is the right time to inform the KBF Board of Directors of my intent to retire from my position one year from now.”

Mr. Carnes noted that he had “a great sense of satisfaction to report that the KBF is in a healthy relationship position with the Kentucky Baptist Convention and its churches. I discerned soon upon my beginning this most current tour of service with the KBF, that these relationships would be my primary task and the focus of my energies. The leadership of the KBF Board of Directors and the KBC have been a vital part of this effort and I’m confident they feel we’ve advanced the mission of the Foundation. “

Carnes emphasized that “the KBF is blessed to have in place, a solid staff of professionals that foster a wonderful atmosphere of collegiality with each other and a commitment to serve every one of our clients in a Christ-honoring way. I have been honored to be their colleague. Please pray with them and for them as they too walk through this time of transition. The Foundation is also very fortunate to have the benefit of the wise counsel of our long tenured corporate legal counsel, Randy Gibson, and the long-standing professional services of our other external vendors that provide great operational stability.”

KBF board Chair, Charles Barnes, stated that “Richard Carnes was indeed God’s man for this era in the history of KBF’s ministry to Kentucky Baptists. The Kentucky Baptist Foundation, thanks to Richard Carnes’ leadership, is positioned to have a strong impact in providing resources for KBC missions and ministries.”

The KBF Executive Committee will serve as the Search Committee for Carnes’ successor. Information about how to submit a recommendation or application will be announced soon.

Your Christian Legacy

By: Richard Carnes

Your legacy – have you ever thought about what that will be? Most of us would like to make a difference in the lives of our loved ones and the ministries important to us. We take steps to make sure they will be taken care of when we are no longer here on this earth. We have the opportunity to provide this care by putting plans in place through proper planning of our financial estate. But have you also thought about memorializing your Christian faith through the written statement of your last will and testament?

Estate documents can present a wonderful opportunity to leave behind a written testimony of your faith in Christ. Evangelist Dwight L. Moody’s Will contained this great example as a lasting expression of his eternal confidence in Christ. “You may have heard that I died. Nothing could be further from the truth. I am alive and well, enjoying the presence of God for eternity. It’s my hope that you will take great joy in my recent promotion. It’s also my prayer and request that if you haven’t discovered the truth about God sending His son to die on the cross so that none should perish, you will seek His truth with great urgency as a personal favor to me.” Another enduring, clear statement was left by Patrick Henry, one of America’s Founding Fathers, who said, “If I had all the goods this world can offer but had not faith in Christ, I would amongst all men be poor indeed.”

You can create your own letter to loved ones, affirming and encouraging them. Consider joining the many Christians who, as a part of their estate planning, have made such statements either by incorporating them into the text of their planning documents, or in letters to be found with their documents following their deaths. Such statements would be a your positive witness of the importance of going the distance in trusting Christ, to those loved ones you leave behind.

Richard Carnes is president of the Kentucky Baptist Foundation, P O Box 436389, Louisville, KY 40253; www.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.

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?

At the Kentucky Baptist Foundation, we emphasize that 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.

Richard Carnes is president of the Kentucky Baptist Foundation, P O Box 436389, Louisville, KY 40253; www.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.

Family Decisions

By: Richard Carnes

When composing or updating wills and estate documents, a couple will naturally discuss how to divide their estate. Many questions arise during these discussions. Do you leave equal amounts to your children? Will each child be a wise steward of the inheritance or have they proven irresponsible with money? Should differing amounts spent for each child’s education impact the division? Do you include any provisions for legacy gifts to the charities with which you are connected?

These are difficult questions, and parents often delay creating or updating a will to avoid answering them. As we wrestle with these questions, keep the following in mind:

· During their lifetimes, parents often give unequal amounts to children based on different needs – but they hesitate to leave unequal bequests, for they don’t want their last words to seem to convey unequal affection.

· If you do plan to leave unequal bequests to your children, talk to them while you are living: explain what you are doing and why.

· You can treat children and family members fairly without providing for them in the same way. For example, a prudent way to provide for a family member who is irresponsible or unsophisticated with money is through a trust from which the family member will receive regular income but have limited access to principal of the trust.

· Your Christian values can be a part of your estate legacy. By including your church and other Christian ministries in your estate plan, you set an example to your family and community of your commitment as a Christ follower.

The Kentucky Baptist Foundation is honored to work with individuals seeking how best to organize their estate planning priorities. Our staff works to help clients achieve their personal and charitable goals, including how to provide for their families and support their church and other Baptist causes. We cannot relieve you of the hard choices you have to make when dividing your estate among children and other family members, but we can assist you with ways to make estate gifts to fulfill your family and charitable objectives. 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, 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.

Do I Need A Will?

By: Richard Carnes

Is it truly necessary for us to have Wills? This is a common question we receive at the Foundation.

The answer is: Yes, you need a Will!

Yes, there are multiple ways to pass property to a surviving spouse, such as joint tenancy with right of survivorship, and beneficiary designations. Nevertheless, everyone should have a Will for the following six reasons:

• 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 assets and how the recipients will receive those assets 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 “Common Mistakes Everyone Makes In Estate Planning”seminar can provide more answers about why you need a Will. Contact Richard Carnes at richard.carnes@kybaptist.orgto 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, Austin Wilkerson at austin.wilkerson@kybaptist.orgor 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.

Planning for a New Year

By Richard Carnes:

Most of us are currently immersed in Christmas events at our churches, holiday baking, Christmas shopping and an otherwise completely full calendar through the end of the year. It’s hard for us to think of anything else, but the start of a new year is an important time for setting fresh goals in many areas of life. This can be an excellent time to review and update our financial plans to make sure the plan will provide adequate financial security for our family and bless the Christian causes important to us.

As we consider strategies for accomplishing our personal and charitable financial goals for 2019 and beyond, we should schedule time to do the following:

• Identify your sources of income and expenses.
• Determine the value of your assets and the income (if any) they produce.
• Review the needs of family members and others, including your church, and consider any changes that may be needed in your plans. 
• Define your goals for the management and future distribution of financial assets.
• Make a detailed list of your assets, such as home (including furnishings) and other real estate, vehicles and other personal property, financial accounts, retirement plans and other investments, including their original cost and current market value. 

It is also beneficial to meet with your professional advisors to review and establish your personal and charitable financial goals. Your financial advisor, life insurance representative, accountant, attorney or other specialist can help you evaluate your specific circumstances and guide you in structuring an estate and financial plan that best achieves your goals.

Regular reviews of your long-range estate and financial plans are the best way to make certain your desires for the management and disposition of your property are up to date and meet your current needs.

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 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 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.

Appreciation Gifts

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 Foundation staff at our toll-free number (866) 489-3533.

Richard Carnes is 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.

Helping Students

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 school year is full of potential and new learning experiences. But, for some students, the hope of achieving their academic dreams may be deferred due to a lack of enough 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 57 scholarships to college and seminary students totaling $74,850 from the 17 scholarship endowments administered by the Foundation. The Foundation is also honored to assist several Kentucky Baptist churches by providing investment oversight and administration of the scholarship funds churches have established for their students.

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.

Educate and Encourage

By:Richard Carnes

The Kentucky Baptist Foundation (KBF) helps educate a church’s staff and lay leadership on effective ways to implement intentional legacy planning programs for church members. It is imperative that churches educate and encourage their members to see their financial stewardship more broadly than just the donation they place into the offering plate. This stewardship training extends to planning the utilization of all the financial resources entrusted to church members for the benefit of their family, their church, and Kingdom causes.

Church leaders can make great strides in impacting the financial well-being of church member’s families and the well-being of the church’s ministries by scheduling teaching opportunities for their church members on how to become “Kingdom-minded” stewards. The great news for church leaders is they are not alone in providing this type of Christian estate stewardship training for their members. The KBF helps facilitate this training of church members to become more “Kingdom-minded” by conducting educational seminars on financial and estate planning topics at your church. This educational resource is provided by the KBF at no cost to Kentucky Baptist churches.

Some examples of frequently requested seminars are:

Estate Planning Mistakes and Solutions- Discover what the ten biggest estate planning mistakes are and how to avoid them to assure you manage your finances wisely.

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.

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 as Christians should give.

As your church begins to plan its Fall series of education and training for Wednesday evenings, Sunday evenings or the Sunday morning Sunday School hour, please consider inviting KBF staff to conduct a seminar session at your church. To learn more, please contact the KBF’s trust counsel, Austin Wilkerson, or me at our toll-free number (866) 489-3533 for the KBF’s full list of legacy planning seminar topics and to schedule a seminar date.

Richard Carnes is 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.