Gone in 90 Days

By: Barry G. Allen-President & CEO 

A widower arranged to meet with Laurie Valentine, our trust counsel, and me to inform us of his desire to demonstrate through his estate plan his love for Christ and his family. He was seeking our assistance in how best to accomplish his estate stewardship objectives. He and his late wife had tithed out of their incomes all their lives, and he wanted to continue that faithfulness out of the accumulated assets with which the Lord had blessed them. He testified to us, “I’ve trusted the Lord all of my life to provide, and He has blessed me far beyond my expectations.” What an example of the biblical stewardship to which each of us is called!

This gentleman had owned a small business, and along with his and his wife’s frugal lifestyle and stewardship faithfulness, had accumulated a nice nest egg for their retirement years. He attributed his success to his faith in Christ, common sense, desire to learn, self confidence, honesty, integrity and a supportive wife.

Neither of his two adult children was interested in the business. Furthermore, he did not feel either of them had the skills or the temperament to manage their portion of his estate. Thus, he was seeking a solution whereby he could provide his children the benefits of their portion of his estate without giving them control of it. He told us if he gave them control it would be gone in 90 days.

After reviewing several options with us and his advisers, he concluded a Charitable Remainder Annuity Trust (CRAT) was the best solution. Through the CRAT he would receive tax advantaged income for his lifetime; at his death the children would receive income for their lifetimes; and at the death of the second to die, the balance of the trust would establish a permanent endowment the income from which would be distributed in perpetuity to Sunrise Children’s Services as a lasting legacy of his and his wife’s love of Christ and His mission in this world.

If you have a similar circumstance in your family, give us the privilege of assisting you.

For more information, please call us at (502) 489-3533 or toll free in KY at 1-(866) 489-3533

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.