Tuesday, May 26, 2015

Give and Receive Growing Income

By: Laurie Valentine- CFO and Trust Counsel 

A charitable remainder unitrust (“CRUT”) is legacy giving plan that provides you and/or other family members a potentially growing distribution stream during the term of the trust, with the remainder set up to benefit one or more charities at the end of the trust term.

You set up a CRUT by creating an irrevocable trust and transferring cash, appreciated securities or real estate to it. The CRUT will pay you and/or others an amount each year equal to the payment rate designated in the trust agreement multiplied by the value of the trust assets, as revalued on January 1 each year. The minimum payment rate is 5%.

The trust term can be for the lives of the non-charitable “income” beneficiaries or a fixed term not to exceed 20 years.

The payment out to you and/or other non-charitable beneficiaries each year will vary---if the trust assets increase in value from one year to the next, the payment amount will increase; if the value goes down, the payment amount will decrease. The goal is to select a payment rate that will allow some growth in the value of the trust assets from year to year so that the payments grow, thereby creating a hedge against inflation over time in what you are receiving from the trust.

When the trust term ends, whatever remains in the trust is distributed to the charities you have named in the trust agreement.

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.



Wednesday, May 20, 2015

Ready to Serve

By: Charles Barnes, Chair 
Board of Directors

The Foundation’s new President, CEO and Treasurer, Richard Carnes, will assume leadership of its ministry on June 1, 2015. The Board of Directors strongly believes that Richard has the qualifications and experience to lead the Foundation’s stewardship ministry in an outstanding manner. I want to take this opportunity to better introduce him to all Kentucky Baptists.

First, it should be noted that it takes a special combination of ministerial and financial training to lead the Kentucky Baptist Foundation. Richard is a graduate of Southern Baptist Theological Seminary with a servant’s heart. He loves people and the Gospel. He understands the financial side of the Foundation’s mission by his experience and professional training. From 1988 to 1995 he was President of the Kentucky Baptist Foundation before going back home to Alabama to start the national WMU Foundation. For the last 18 years, he has been a Vice President and Senior Advisor to non-profit investment clients at PNC Bank.

Second, Richard has the natural ability to relate to all Kentucky Baptists who are potential clients and need guidance in making a legacy stewardship commitment to undergird the future Kingdom work of the local church, Cooperative Program, Baptist institutions, and other Baptist causes.

Third, Richard will have a very competent staff and team on board June 1 supporting him. Led by Laurie Valentine, Trust Counsel and Chief Operating Officer, the other members of the team are Barbara Spencer, Administrative/Public Relations Assistant; Janet McIntosh, Accounting Manager; and Katrina Umphrey, Office Assistant. Over the last 90 days as Interim CEO, I have personally seen how dedicated and effective these team members are each day.

In summary, with the leadership of Richard Carnes, the Foundation is positioned very well to serve you. I ask that you pray about your legacy giving opportunity and consider allowing the Kentucky Baptist Foundation to assist you in making your commitment. Richard and the staff will be ready to serve.

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





Wednesday, May 13, 2015

12 Creative Giving Ideas for 2015- #5

By: Laurie Valentine-Acting President, CFO & Trust Counsel

For many, one of the largest assets they may own is their retirement account. And, unlike almost any other asset you own, there is potential for a double tax “hit” on the transfer of retirement assets at your death.

The value of your retirement accounts is part of what is counted in determining if your estate owes any federal estate tax (first tax “hit”) and, if you family is named as the beneficiary/new owner of the retirement account when they take funds out they will have to pay income taxes on what they take out (second tax “hit”).

To avoid the double tax hit, consider using all or a portion of a retirement account to fund the legacy gifts you want to make at your death. The portion passing to charity provides your estate an estate tax charitable deduction and, since the charity is tax exempt, the charity does not have to pay income taxes on what it receives from your retirement account.

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.

Thursday, May 7, 2015

Inheritance: What Kind Are You Bequeathing?

By: Barry G. Allen

The matter of inheritance is exceedingly important and a crucial concern in the dynamics of family life today. Parents consider at length what kind of inheritance they want to pass on to their children. And, children, in turn, when they attain a certain age, ponder what they are going to inherit from their parents. The familiar and favorite parable of the wise father and the prodigal son (Luke 15:11-24) is the finest example I know of the kind of inheritance I would like to give as a parent and receive as a son.

To clarify what this parable teaches us two common misconceptions must be addressed and set aside. The first is an inheritance is something parents leave their children after they have died. However, if you think about it, this is far too limited a concept because parents begin bequeathing an inheritance to their children the moment the child is born in the sense of passing on certain life experiences and values that surely will shape that child’s existence. So, the request of the prodigal was not as brash as it first appeared. Like any young adult leaving home he gathered up whatever inheritance had been shared with him and began transacting with life out of that legacy. As parents it is imperative we not wait until the end of life to consider what kind of inheritance we want to leave.

The second misconception is an inheritance consists only of money or physical property, which also is a far too restricted view, because an inheritance stands for all parents transfer to their children in terms of opportunities, values and a whole vision of life. This is not to imply the economic side is unimportant, because it is very important. But it is not everything, and a child is poor indeed whose parents do not realize this and seek to bequeath only a monetary estate. A child needs more from parents than money bequeathed at death, and this is why the father of the prodigal is so worthy of our attention. And, what makes it doubly important is this father is a reflection of our Father in Heaven.

So, remember, it’s more important what you leave in them that what you leave to them. “Instill your values…before you give them your valuables.”

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

Barry Allen is the retired President and CEO of the KBF and currently serves as a consultant to the interim management team. This article published in this week's Western Recorder also appeared in a previous edition of the paper. 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.