Tuesday, October 2, 2018

Giving Wisely

By: Richard Carnes

Kentucky Baptist, Southern Baptist and other Christian causes rely on charitable gifts to meet their current needs and support their future. Gifts to those causes made through the Kentucky Baptist Foundation will be managed using the highest business and Christian ethical standards and methods.

Your gift can take multiple forms and can help you address your personal financial goals. Do you want to make a significant gift during your lifetime, or would a gift as part of your estate work better? Do you have an asset that you are thinking of donating? Do you want to increase your retirement income, or is your primary goal estate preservation? Are you carrying excess life insurance or a large balance in your retirement plan?

Did you know there are ways to support charitable causes important to you that don't affect your current lifestyle or your family's financial security?

· You can make a gift that costs you nothing during your lifetime.

· You can make a gift that leaves your cash flow and current financial planning unchanged.

· You don't have to use cash to make your gift: you can "buy low and give high" by making your gift with appreciated securities instead.

· You can gift an asset you no longer need or want.

We will be pleased to work with you and your advisors to help you craft the gift plan that works best for your goals and dreams. A great place to start as you consider your gift planning is the Kentucky Baptist Foundation’s website www.kybaptistfoundation.org. Many Kentucky Baptists have utilized this site as a source for educational articles on estate and gift planning, charitable gift topics and planning tools.

A great first step when you access the website is to explore our Legacy Planner decision-making tool that helps a person explore gift planning options based on their goals. The Legacy Planner is interactive and fun to use. I encourage you to try it!

The Kentucky Baptist Foundation is here 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, September 4, 2018

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.


Tuesday, August 7, 2018

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.




Wednesday, August 1, 2018

KBF 2nd Quarter 2018 Performance Update

KBF – 2nd Quarter Performance Update – The Equity Fund had a positive 3.0% return vs. the equity blended benchmark’s return of positive 2.6% for the 2nd Quarter 2018. The trailing 12 months’ return of the Equity Fund was a positive 14.2% vs. the equity blended benchmark’s return of positive 12.3%.

The Fixed Income Fund declined -0.6% for the 2nd Quarter 2018 vs. the Fixed Income benchmark’s decline of -0.1% for the same period. The trailing 12 months’ return for the Fixed Fund was a positive 0.1% vs. the Fixed Income benchmark’s return of 0.0%.

Accounts with a 50/50 allocation between the Equity Fund and Fixed Income Fund had the following returns: 7.2% for the trailing 12 months; and annualized returns as follows: 5.4% the past 3 years; 6.3% the past 5 years; and 5.2% the past 10 years.

Accounts with a 60/40 allocation between the Equity Fund and Fixed Income Fund had the following returns: 8.6% for the trailing 12 months; and the annualized returns as follows: 6.3% the past 3 years; 7.2% the past 5 years; and 5.5% the past 10 years.

Discover how your church or faith-based not-for-profit organization can invest endowment and similar funds through the Kentucky Baptist Foundation by calling Richard Carnes.

Tuesday, July 10, 2018

Gift Annuity Update

By: Richard Carnes

At the recent 33rd Conference on Gift Annuities, the American Council on Gift Annuities announced new suggested maximum gift annuity rates to take effect July 1, 2018. The new rates reflect an adjustment upward in most rates since the last set of suggested rates became effective in 2012.

A charitable gift annuity enables the donor to make a contribution that might otherwise come through their estate, while also retaining significant benefits today. When a donor establishes a gift annuity through an organization like the Kentucky Baptist Foundation, the property that funds the gift annuity is eventually used for the charitable ministry purpose that the donor designates, just as if the donor had left a bequest by will. But unlike a bequest, a gift annuity will provide the donor with regular payments and other benefits for as long as they live.

Under the terms of a gift annuity the donor can make a charitable gift with cash or other property. The donor or others they designate then receives fixed payments for life. The amount and frequency of the payments are determined at the time the gift annuity is funded. Also, the payments will never change and are designed to continue regardless of how long you live.

Because a portion of the gift annuity will be used for charitable purposes, the donor is entitled to an income tax deduction for the year of gift. Additionally, for a period of time, part of each payment may be received free of income tax or be taxed at capital gains tax rates that may be significantly lower than rates paid on other income.

You may wish to consider arranging a future charitable gift by establishing a gift annuity that results in immediate tax and other financial benefits. By doing so, you may be able to enjoy tax savings and increased income today while providing for a significant charitable gift to a favorite Baptist ministry.

To seek assistance in creating a charitable gift annuity that will ultimately provide support for Baptist causes and learn more about the recent gift annuity rate changes, contact the Kentucky Baptist Foundation at our toll-free number (866) 489-3533.

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

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









Tuesday, June 26, 2018

Safeguarding My Records

By: Richard Carnes

During our seminars on estate and legacy planning we are frequently asked the question, “Where should I store my will and other important estate-planning documents?” Great question! If a will cannot be found, an estate may risk being distributed according to the often-inflexible intestacy rules of state government.

Most advisors recommend keeping the original will in an attorney’s vault or in a bank vault if the bank is acting as executor. Keeping your will in a safe-deposit box is secure but beware that this location can create delays, since many states restrict access to such boxes without court approval.

In addition to your will, your personal and financial records, legal documents, and tax returns are all essential to an efficient settlement of your estate. As such, they should be safely stored but readily accessible when needed. The following list shows those documents that will prove helpful, suggests where they should be stored, and explains why they are important.

Original Will/Trust, Power of Attorney, and Health Care Directives
  • Location: attorney’s vault or bank vault; retain copies at home
  • Value: irreplaceable documents, essential for carrying out your estate plan
Investment Documents (stock certificates, bonds CDs, deeds, and titles)
  • Location: safe-deposit box
  • Value: required for sale, distribution, or collection
Insurance Policies
  • Location: safe-deposit box
  • Value: required to make claims
Tax Returns
  • Location: file at home (keep irreplaceable records and receipts in safe-deposit box)
  • Value: helpful to executor when filing final income-tax return and estate -tax return
Asset Inventory
  • Location: safe-deposit box
  • Value: necessary to locate and collect property

The Kentucky Baptist Foundation helps inform Kentucky Baptist church members on resources to implement intentional legacy planning for themselves, their families, and the ministries important to them. To learn more, contact us to schedule a legacy planning seminar at your church. The seminars are provided at no cost to the church. You may contact us 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 30, 2018

Why the Delay?

By: Richard Carnes

Many people have the good intention of making financial plans to care for their family and charitable causes important to them, but those same people procrastinate. Here are often cited reasons for delaying action on your will – and responses to each.

1. “Everything my spouse and I own is in joint tenancy, so we don’t need a will.”

Although your home, automobiles, and bank accounts may be in joint tenancy, there are probably some assets that are individually owned. Furthermore, a will is necessary to dispose of property at the death of the survivor or in the event both spouses die in a common incident.

2. “We completed and estate plan with an attorney ten years ago, and nothing has changed since then.”

Even if the family circumstances are essentially the same, your assets have likely changed. Also, there have been significant changes in the laws affecting gift and estate taxes, so additional planning options may now be available.

3. “We have a living trust for the management and disposition of our assets.”

It is highly unlikely that you have transferred everything you own to the living trust, so you need at least a “pour over will” that would transfer all non-trust property to the trust.

4. “Based on conversations with friends, developing an estate plan is very expensive.”

The cost may be less than you expect, especially if you do not have a complicated estate. Also, the amount you spend now may be far less than the cost to your beneficiaries without a thoughtful plan.

5. “I’m just too busy now. I expect to be around for a while. I’ll do it later.”

Procrastination when you have no will leads to state law determining the division of your assets. Procrastination when you have an out-of-date will could lead to unintended consequences that then creates dissension between family.

An up-to-date plan brings peace of mind, freeing you to live life without a nagging sense that something is undone. To make intentional plans to care for your family and ministry causes, call upon the Kentucky Baptist Foundation as a helpful partner.

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.