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.







Thursday, June 15, 2017

KBF Ambassadors

By: Richard Carnes

On March 8, 2017, the Kentucky Baptist Foundation (KBF) celebrated its 72nd anniversary of service to Kentucky Baptist individuals and ministries. Despite our strong history, we continually encounter Baptists who are unaware of our estate stewardship ministry. I am convinced the Foundation’s greatest challenges have been, and continue to be, our visibility, awareness, and understanding among Kentucky Baptists.

From the beginning of the Foundation’s ministry, its’ Core Convictions have been:

1. God is creator and owner of all things and we are called to be His stewards (managers).

2. How we plan our estates will likely be the single most significant act of financial stewardship we will ever make.

3. Through estate stewardship, each of us can impact the world for Christ.

4. To be successful in reaching their communities and the world for Christ, churches must be equipped to cultivate and secure legacy gifts their members are inspired to give.

One way we plan to increase our visibility is with a new initiative --- the KBF Ambassador Program. The Ambassador Program’s purpose is to create a network of ministerial and lay leaders who will enhance the visibility and awareness of the Foundation’s ministry and services by serving as the Foundation’s cheerleaders and encouragers in their congregations and communities.

Ambassadors in the KBF program will have the opportunity to become knowledgeable of the Foundation’s ministry and services and recommend the Foundation’s services to individuals or churches who have needs that the KBF may be able to meet. Foundation staff and board member representatives will provide education sessions on the Foundation’s ministries at regional sessions in the coming months.

We strongly believe this volunteer ministry will produce significant resources to assist local Baptist churches in reaching our communities and our world for Christ. Please prayerfully consider becoming a member of this new group of Kentucky Baptist men and women. Your efforts through KBF Ambassadors may help encourage and educate your friends in effective ways to provide for their families and Kingdom work.

To learn more about the KBF’s Ambassador Program, 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.

Thursday, June 1, 2017

Legacy Gift Designation

By: Richard Carnes

You may be hesitating to make a legacy gift to your church because you don’t want to incur the expense of changing your will. Actually, there are numerous ways to arrange a future gift while leaving your current will intact.

1. You can name your church or other Baptist ministry as a beneficiary of any portion of the death proceeds from a life insurance policy.

2. You can instruct your bank to distribute any portion of what remains in your account to your church or ministry at the end of your life. This is called a payable-on-death (POD) account.

3. You can instruct your investment advisor firm to transfer to your church or ministry any portion of investments held at the end of your life. This is called a transfer-on-death (TOD) account.

4. You can name your church or ministry as a beneficiary of any percentage of the remaining funds in your IRA, 401(k), 403(b), or other defined contribution retirement plan.

In each case, you need only request and complete the beneficiary form provided by the financial institution. When a church or ministry is named as beneficiary through one of these arrangements, the proceeds are not governed by your will and are not subject to probate.

However, like the provisions in a will, these beneficiary designations can be changed at any time. You need only complete a new beneficiary form. Adding or removing a charitable bequest requires a will change, though you could do this with a simple codicil (amendment) if the rest of the will still expresses your wishes.

A charitable gift by beneficiary designation, like a bequest in a will, qualifies for an estate-tax charitable deduction and could result in estate-tax savings, depending on the size of your estate.

Increasingly, estate assets are transferred to beneficiaries outside of a will. The Kentucky Baptist Foundation is honored to work with individuals seeking how best to designate estate assets they wish to gift to their church or other Baptist ministry causes. 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.