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.