A Place to Start

By: Richard Carnes

When working with individuals seeking guidance from the Kentucky Baptist Foundation, we are often asked for suggestions on how best to begin a person’s estate planning process. We suggest using the following four steps as a framework for organizing your thoughts.

People

The people in your life are central to the planning process. List those individuals for whom you are now financially responsible and those whom you would like to assist in the future. This is also the place where you could list your church, and other Christian ministry causes as part of your “family.”

Property

Next, we suggest listing your property. Think of everything you own, including financial assets and tangible property. Begin with income from all sources (salary, investments, rental property, etc.) Also include any current balances in pension plans, individual retirement accounts (IRA’s), 401K plans and other retirement plans. Beside each asset, list its current value. Next to its value, list its cost. Finally, note whether it is owned outright or with others.

Plans

Your plans begin to take shape as you review the list of persons and consider how you wish to provide for them. Study the various assets you listed to determine which ones may match the needs of each person or charitable cause you identified as important to you.

Planners

At the top of the list of planners will often be an attorney and an accountant. Your attorney drafts your will and other legal documents. Your accountant can provide valuable advice on tax matters as well as other estate planning issues, in consultation with your attorney. Others who may participate include life insurance professionals, financial planners, real estate professionals and trust officers.

The Kentucky Baptist Foundation is honored to work with individuals seeking how best to organize their planning goals to achieve their personal and charitable objectives, to support their families, their church and other Baptist causes.

To learn more, call upon the Kentucky Baptist Foundation as a helpful partner.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; www.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.

A Gift of Love

By: Richard Carnes

February is filled with reminders to express our love and affection to those close to us. We may express this affection through greeting cards, bouquets of flowers and candle lite dinners. All these gestures can be memorable, but they are temporary in nature.

A lasting way to say “I love you” is by making provision to care for your loved ones, yourself, and charities important to you through creating a written estate plan. Knowing where to begin, what to look for, and what you might expect can help turn this task into an effective plan. A great place to start the process of creating an estate plan that reflects your goals and values is through the Kentucky Baptist Foundation’s Estate Plan Organizer, located on our website, KYBaptistFoundation.org. The Estate Plan Organizer will take you through the estate planning process easily and at your own pace. The whole process can be completed in as few as 30 minutes and you can save your work at any time and return to the Organizer at your convenience.

When you have completed the Organizer, you will have a well thought out design for your estate that reflects your priorities. You will then be well prepared to work with your attorney and financial advisors, who will assist you in structuring an estate and financial plan that best achieves your goals.

An estate plan may not be a glamorous gift, but it is a valuable gift… a gift of love.

The Kentucky Baptist Foundation is honored to work with individuals seeking how best to organize their estate planning goals to achieve their personal and charitable objectives, to support their families, their church and other Baptist causes. To learn more, call upon the Kentucky Baptist Foundation as a helpful partner.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; www.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.

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.

Estate Documents You Need

By: Richard Carnes

If you have an up-to-date will, congratulations, you are in rare company! Shockingly, almost 60% of Americans have no will at all. And, for the 40% of Americans that do have a will, only about 30% of this group have one that is up-to-date. This statistic translates into only 12% of Americans having an up-to-date will.

Your will is only one of the estate planning documents you need. The attorney who drafted your will may have prepared other necessary documents and explained them to you. Some of these documents also provide the opportunity to designate a charitable beneficiary. To be sure you have covered all the essentials, please review the following list of what you may need:

- Durable power of attorney, which authorizes someone to act on your behalf regarding financial matters if you are unable to do so.

- Directive to physicians (also called a “living will”), in case you are ever in a physical state where you cannot speak for yourself.

- List of recipients of tangible property. This list referenced in your will includes the people who are to receive specific items other than real estate and investments. Many types of tangible property can be donated to a charity as well.

- Revocable living trust. You may want to create a revocable living trust, especially if you own out-of-state real estate and/or want to provide for management of your assets.

- Beneficiary designations. Be sure to review the beneficiary designations of your retirement accounts, life insurance, bank accounts and investment accounts to make sure they reflect your current wishes and are coordinated with your will. A person may make a gift to their church, mission or special ministry by listing the charity within your beneficiary designations.

- List of assets, documents and records and where to find them. Include where to find passwords to digitally stored documents, which is an increasingly important part of an estate.

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. You may contact us 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; 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.

Four Reasons An Estate Plan Is Beneficial For Everyone

It is common for people to consider how they will eventually like their assets distributed among loved ones and ministry organizations. But perhaps you have not developed a comprehensive estate plan because you think that is necessary only for the extremely wealthy. In actuality, the need for estate planning applies to everyone. A smaller estate requires even more care to avoid unnecessary expenses and retain the maximum resources for fulfilling your personal, financial, and charitable goals. Here are four key reasons why you should establish an estate plan:

1. Defining Care For Yourself – A healthcare proxy, power of attorney, and living will define how you wish to be cared for should you ever experience a period of incapacity.

2. Creating Financial Security – A will allows you to direct how you want your assets distributed and to whom, regardless of the amount. If you don’t have a personal will, state laws will determine who receives your assets.

3. Naming Guardians – If you have minor children, it’s important to make written arrangements for their care. A will is the only legally recognized way to name a person you would like to entrust with the care of your children.

4. Naming Beneficiaries – Your estate plan includes filling out beneficiary forms for assets such as insurance policies and retirement accounts. You should review your designated beneficiaries after major life events. You can also name a charitable organization as a primary beneficiary or contingent beneficiary within your plan.

A well-crafted estate plan benefits you, your loved ones, and the ministry causes you care about. Everyone needs to complete the four steps described above. Because no two situations are alike, the best course of action is to have your financial advisor and estate planning attorney review the details with you and help craft your estate plan. 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’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.

Your Estate-Planning Team

By: Richard Carnes

Because estate planning is a comprehensive matter that involves all areas of your financial life it is unlikely that any one person or resource will meet all of your estate-planning needs. It is more likely that you will want a team of advisors to guide and assist you with various aspects of your planning and will want to consider the following “members” for your team:

Attorney: A lawyer skilled in estate planning is essential. Your attorney will help you create the primary building blocks for your estate plan, such as a will or trust, to fulfill your objectives.

Accountant: Along with your attorney, your accountant will pinpoint important tax issues and help develop plans to deal effectively with them.

Investment Advisor: A good investment advisor can be invaluable as you work to build and preserve your asset base. Your investment advisor can be most effective when he or she knows and understands your overall goals and objectives and works with the other team members to achieve them.

Charitable Gift Planner: Professionals with experience in gift planning, such as Laurie Valentine, trust counsel for the Kentucky Baptist Foundation, can suggest ways to meet your charitable goals that work with and enhance your personal and family goals.

Bank/Trust Officer: You may need management assistance to carry out your plan. A good relationship with a banker or trust officer can be a great advantage in making your plan work.

Insurance Professional: Protection is a crucial aspect of any plan. Competent insurance professionals can make sure all your risks are adequately addressed.

Estate planning is a lifelong process that continues through the accumulation, preservation, and distribution phases of your financial life. You have the opportunity, as a faithful steward of resources God has entrusted to you, to provide for your family members, and Christian ministry causes important to you through thoughtful planning. The staff of the Kentucky Baptist Foundation would be honored to be a part of your estate-planning team. If you have questions, please 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, 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.

Time For Some Estate Plan Changes?

By: Laurie Valentine

Keeping up with the details of life and changes in our lives takes more time than most of us give it. For many of us, we are so busy watching and planning around the changes occurring at work or school we don’t take time to consider changes that may be occurring in our day-to-day lives and the impact of those changes on planning we have done.

Estate planning is one area of personal planning that doesn’t get a lot of “revisiting”. Your estate plan---your will, power of attorney, health care advanced directives, and beneficiary designations---should be reviewed on a regular basis to make sure it continues to accomplish your planning objectives. Your plan should also be revisited when there are changes in your life and/or that of your family---marriages, births, deaths, divorces, change in state residence, changes in financial status.

Focus on the following as your review your plan:

Fiduciaries. Are the persons you’ve named to serve as executor under your will or successor trustee of your living trust still willing and able to serve? Are you and your spouse still comfortable with the persons you have named to serve as guardians for your children? Is the person named to act under your power of attorney still willing and able to do that?

Beneficiaries. Have there been deaths or births not considered when you had your will or living trust prepared? Have you or one of your beneficiaries married or divorced since then? Do you have an ultimate beneficiary(s) named to receive your estate if all of your family dies before you?

Death Benefits. Are beneficiary designations of life insurance, retirement or IRA benefits coordinated with the plan of distribution under your will or trust?

Assets. Has the value of your estate changed?

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.

Your Christian Legacy

By: Richard Carnes 

Have you given much thought to what your legacy will be? Most of us desire to make a difference in the lives of our loved ones. We take steps to ensure they will be taken care of when we are no longer here on this earth. Through proper financial estate preparation we are able to provide this care. But have you also thought about memorializing your Christian faith through the written statement of your last will and testament?

Estate documents present a wonderful opportunity to leave behind a written testimony of your faith in Christ. Evangelist Dwight L. Moody’s Will contained this great example as a lasting expression of his eternal confidence in Christ. “You may have heard that I died. Nothing could be further from the truth. I am alive and well, enjoying the presence of God for eternity. It’s my hope that you will take great joy in my recent promotion. It’s also my prayer and request that if you haven’t discovered the truth about God sending His son to die on the cross so that none should perish, you will seek His truth with great urgency as a personal favor to me.” Another enduring, clear statement was left by Patrick Henry, one of America’s Founding Fathers, who said, “If I had all the goods this world can offer but had not faith in Christ, I would amongst all men be poor indeed.”

You can create your own letter to loved ones, affirming and encouraging them. Consider joining the many Christians who, as a part of their estate planning, have made such statements either by incorporating them into the text of their planning documents, or in letters to be found with their documents following their death. Such statements would be treasured and serve as a witness to those you leave behind.

The staff of the Kentucky Baptist Foundation are available to you for a private, confidential estate stewardship and legacy planning consultation. To request a consultation, please 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.

A Place to Start

By: Richard Carnes

Individuals who seek guidance from the Kentucky Baptist Foundation often ask for suggestions on how best to start their estate planning process. We suggest using the following four steps as a framework for organizing your thoughts as you begin.

People

The people in your life are central to the planning process. List the individuals for whom you are now financially responsible and those whom you would like to assist in the future. It is also appropriate to include your church and other Christian ministry causes on the list as part of your “family.”

Property
Next, we suggest listing your property. Think of everything you own, including financial assets and tangible property. Begin with income from all sources (salary, investments, rental property, etc.) Also include any current balances in pension plans, individual retirement accounts (IRA’s), 401K plans and other retirement accounts. Beside each asset, list its current value and the asset’s original cost. Finally, note whether you own the asset outright, or with others.

Plans
Your plans begin to take shape as you review the list of persons and consider how you wish to provide for them. Study the various assets you listed to determine which may match the needs of each person or charitable cause you identified as important to you.

Planners
Various professionals play a key part in establishing and advising your estate plan. At the top of the list of planners will often be an attorney and an accountant. Your attorney drafts your will and other legal documents. Your accountant can provide valuable advice on tax matters as well as other estate planning issues, in consultation with your attorney. Others who may participate include life insurance professionals, financial planners, real estate professionals and trust officers.

The staff of the Kentucky Baptist Foundation would be honored to be a part of your planner team. We welcome the opportunity to work with individuals seeking how best to organize their estate planning goals to achieve their personal and charitable objectives. To request a private estate stewardship consultation, please 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.

Why Are Churches Overlooked?

By: Barry G. Allen

Why do church members overlook their churches when making planned gifts? Planned gifts are gifts church members can’t put in the offering plate; they are gifts out of assets, not income; gifts made in light of the church member’s overall estate and financial plans; gifts that use tax-advantaged methods to accomplish the church member’s philanthropic objectives; and gifts that may require professional adviser assistance to complete.

Churches are the most overlooked charities in estate stewardship and planned giving. Church members are more likely to include in their estate plans or make a planned gift to a college, children’s ministry, human need ministry, the arts or a museum, but not a church.

We have discovered through assisting individuals and families the most likely reasons church members overlook their churches are these. First, they are never asked by their church leadership even to consider including the church in their estate plan or to make a planned gift during life. Second, most church members, even those who tithe out of their incomes, understand tithing as something one does during life, but not at death. Third, they lack confidence the church has the ability to administer such a gift. Fourth, they were unsatisfied with the effectiveness on the church’s ministry. Fifth, they did not have the level of esteem for the church’s leadership required to make such a gift.

Let me encourage you not to overlook your church in your estate stewardship. To the extent Laurie Valentine, our trust counsel, can be of assistance to you, please give her that privilege. Call her toll-free. There is no cost or obligation for this consultation service. Furthermore, she can suggest proven solutions for consideration in overcoming the obstacles others have mentioned as reasons they did not include their church in their plans.

Also, let me encourage you to visit our website at www.kybaptistfoundation.org for valuable charitable gift planning information, including an interactive estate plan organizer, which is a terrific secure and private data gathering, tutorial, decision-making tool.

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.

How Long Has it Been?

By: Barry G. Allen- President & CEO

How long has it been since you reviewed your estate planning documents? Are the ways in which your assets are titled consistent with your distribution plans as stated in your estate planning documents? Is your executor/executrix still available and willing to serve in that capacity? If you have minor children, have you provided for a guardian of your choosing? Are you taking advantage of the marital deduction to which you are entitled? Are you taking advantage of the federal estate tax exemption equivalent? Have you considered the possible benefits you might attain from a revocable living trust? Have you included your church and other Christian ministries, which are near and dear to your heart, in your plan either by bequest in your will or revocable living trust, or by beneficiary designation of life insurance or retirement accounts? Have you executed a durable power of attorney and a living will directive?

Statistics reveal a very high percentage of Americans who have wills do not have current wills. In other words, if they died today the wills they have in place do not reflect their current wishes regarding distribution of assets. Circumstances in their lives have changed since they executed their wills, but they have not kept their wills current. There have been deaths, births, graduations, marriages, divorces, incapacitated loved ones or relocations to or from another state. And yet, these individuals have neglected their Christian duty to review, and if necessary, revise their estate planning documents. Remember what the Apostle Paul advised the Christians of his day and is still advising us today via the Holy Scriptures in 1 Timothy 5:8: “If anyone does not provide for his relatives, and especially his immediate family, he has denied the faith and is worse than an unbeliever.”

And what about those of you who do not have even a basic will let alone any other estate planning documents? According to a recent Rocket Lawyer survey you are among the 61% of Americans who fall into that very depressing category.

Laurie Valentine, our trust counsel, suggests one revisit his or her estate plan every three to five years, or sooner if circumstances warrant, to keep it up to date. And, she strongly urges every one not to procrastinate in tending to these all important matters. After all, it will be your family and other heirs that likely will pay the price for your procrastination. If you have questions, feel free to call Laurie toll free. Also, invite her to your church or adult group to present our “Estate Planning Mistakes and Solutions” seminar.

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.

A Christ-Centered Will

By: Barry G. Allen- President & CEO

New Testament professor R.E.O. White taught the permanent value of Paul’s letter to the Colossians is its value both as a theological feast and a spiritual tonic. Paul’s purpose in writing was both to instruct a questioning faith and to enrich daily Christian life. Both the fullness of Christ and the Christ-filled life are affirmed by Paul. His fullness is affirmed in relation to God, the universe, the church and experience.

As disciples of Jesus Christ, we strive daily to reflect a Christ-filled life. In Colossians 1:16, Paul acknowledged “all things were created by Him and for Him” to fulfill His purposes and to promote His glory. How we plan our estates very likely will be the single most important act of financial stewardship we will ever make. Therefore, it is vitally important we acknowledge and affirm His Lordship in our lives with a last will and testament that is Christ-centered. Through faithful estate stewardship we impact the world for Jesus Christ, we advance His Kingdom and we acknowledge His Lordship. Furthermore, obedience in this realm and writing a Christ-centered will enriches our daily lives as we find contentment in knowing the financial resources He entrusted to us in life will be used in fulfilling His purposes and promoting His glory beyond our lives on this earth.

A bequest in a will or revocable living trust for the benefit of your church and other Christian causes is the simplest and most popular way to have a Christ-centered will. The bequest can be a specific sum, percentage or asset; it can be undesignated or designated; it can be outright or for perpetual support through an endowment fund. The reason a bequest is so popular is it allows one to retain complete control and use of the financial resources until death when they are no longer needed.

In 1 Timothy 6:7 Paul reminds us financial resources are temporal; they provide for our basic needs, but we must put godliness above everything else: “For we brought nothing into this world and we can take nothing out of it.” When you and I gain that truth, we gain something lasting.

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.

Is Your Plan Coordinated?

By: Laurie Valentine- COO & Trust Counsel

Efficiently and effectively accomplishing God’s plan for how what you own will pass at your death requires you put together a “coordinated” plan for how your assets will pass.

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. Here’s an example: Your intention is for anything coming to your son from your estate 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.

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.

Documenting Your Plan

By: Laurie Valentine- COO & Trust Counsel

Christian estate planning is about stewardship---making decisions and putting in place documents that most effectively and efficiently accomplish God’s plans for your possessions.

When it comes to planning for passing assets at death, good estate stewardship requires that you put in place a written plan---a Will or Will and Revocable Living Trust.

If you have not made a Will, state law determines how your individually-owned assets will pass at your death. The state’s “Will” may direct distribution of your assets in a way that doesn’t meet your family’s needs or to persons with whom you would not want to share your estate. And, all distributions under the state’s plan will be outright to the designated beneficiaries---no matter their age and/or capacity to manage what is coming to them. Also, using the state’s “Will”, rather than writing your own, may result in more cost to administer and pass your assets at your death; thereby leaving less for your family.

Planning for possible future incapacity requires giving those you want to act for you written authorization to do that. Powers of Attorney and health care advanced directives are the “written plans” you can use to accomplish that part of your planning.

A Power of Attorney can include financial management authority such as the power to use your cash, investments, real estate and business interests for your benefit and sign tax returns and deal with tax matters for you. Personal decision-making authority such as the power to obtain private health information and make healthcare decisions for you can also be included.

A Living Will Directive allows you to put down in writing your wishes regarding when/if you want life prolonging medical treatment withheld or withdrawn.

And, to assure your plan will continue to accomplish God’s purposes for your possessions make sure to keep it up to date by reviewing it every few years and also any time there are changes in your situation or that of your family (marriages, births, deaths, etc.).

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.

Provide Support for Designated Time Period

By: Laurie Valentine-COO & Trust Counsel

Is your church in a capital campaign? Or, would you like to fund your annual giving for missions, childcare ministries or other charitable causes for the next few years in a new and creative way?

If you answered “yes” to either question and you want to coordinate your charitable giving with a tax-saving way to transfer assets to your family, a charitable lead annuity trust is a giving vehicle to consider.

A charitable lead annuity trust (“CLAT”) is a giving plan that provides a fixed income stream to one or more charitable causes for a designated period of years. At the end of the trust term the trust remainder can either be returned to you (this is a “grantor lead trust”) or be distributed to your children and/or other family members (a “non-grantor lead trust”).

While a gift to a “non-grantor” CLAT does not entitle you to a charitable income tax deduction, it does provide a way to pass assets to your children or others at reduced gift and estate tax cost. Gift tax savings come from the fact the tax value of the future gift to your family is the present value of the remainder interest in the trust, not the full value of what you place in the trust. With careful coordination of the fixed amount being paid to the charitable beneficiaries and the trust term you can reduce the present value of the remainder gift to family significantly. Estate tax savings result from the removal of the asset, any subsequent appreciation and the future income it generates from your estate.

Example: Sam and Betty Smith set up a 5-year 8% CLAT funded with $50,000 of stock. The $4,000 per year income stream (8% x $50,000 gifted to the trust) will be distributed to the Smiths’ church to fund their capital campaign pledge. Over the 5-year term their church will receive a total of $20,000. Assuming the trust assets earn an average annual return of 6.7%, there will be almost $44,000 left to pass to their children at the end of the 5 years and, if the gift tax value of the future gift to their children is only $31,150, $12,850 of that value passes tax-free to the children.

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.

Young Couples, Stop Procrastinating!

By: Barry G. Allen- President & CEO

The services of the KBF are not just for older adults. They are available to adults of all ages and circumstances. Unfortunately we find so many young couples, and especially those with minor children, have not executed any estate and incapacity planning documents. Oftentimes they simply have not considered the extreme risks to which they are exposing themselves and their minor children.

Among the young couples who have called upon the KBF for assistance was a couple with two minor children. Furthermore, they owned some real estate in Kentucky and in another state. They did not have any estate planning documents.

The husband had saved a bookmark he had received at the Christian Estate Planning Basics seminar Laurie Valentine, our trust counsel, and I had conducted in their church some time ago. The KBF’s toll free telephone number was on the bookmark. He contacted me, and I arranged a private consultation session for him and his wife with Laurie. There was no cost to them for this service because it is subsidized by the collective giving of Kentucky Baptist churches through the Cooperative Program. Laurie was able to answer their questions, make suggestions helpful in accomplishing their objectives, identify the estate and incapacity planning documents they needed and refer them to an estate planning attorney to represent them and produce the legal documents for them.

This couple’s testimony was “Laurie is very good at listening and making suggestions about what is needed and makes it easier to get an estate planning attorney to prepare the needed documents to carry out the plan. It was a pleasant, painless experience, and we highly recommend young and older adults to stop procrastinating in their planning and let the Foundation assist them. We now have peace of mind knowing a plan is in place to care for our children should we die or become incapacitated before they are adults.”

If you are a young adult, single or married, and have not executed a will and other important documents, please call Laurie toll free for assistance. If you are a parent, grandparent or friend of a single young adult or couple without these legal documents, encourage them to procrastinate no longer, and call Laurie.

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.

12 Things to do in 2013-Unequal Shares in Your Will

12 Things to do in 2013-Barry Allen #12

Typically parents leave their children equal shares of their estates. However, there are reasons a parent might leave unequal shares. These include different needs of the children, financial success of one child, a benefit previously given to a child that will be balanced in the estate distribution, estrangement from a child or a blended family.

The KBF encourages every parent to consider prayerfully the circumstances of their children as they plan their estates - and - also encourages parents to consider including "a child called charity," such as their church and other Christian causes they supported during their lifetimes.

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.

12 Things To Do In 2013-Is Your Estate Distribution Plan "Coordinated"?

12 Things to do in 2013- #7 -Laurie Valentine

Of the 40% of Americans who actually have a written plan for how they want their assets to pass at their death, only 30% of those plans are up-to-date. And, I would suspect, some of the “up-to-date” plans are no longer completely “coordinated”.

A “coordinated” estate plan is one that coordinates the provisions in your “written plan” for who is to inherit what when you die (your Will or Will and Revocable Living Trust) with how your assets are titled and who are named as beneficiaries of life insurance policies, IRA’s and other contractual death benefits.

Here’s an example of what can happen if you don’t have a “coordinated” plan: Your Will sets up a trust fund for your son to be held until he is 26 and your IRA beneficiary designation directs your son’s share of the IRA be added to the trust created under your Will. However, the beneficiary designation for your life insurance policy names your son as the outright beneficiary. At your death, assuming your son is under age 26, your probate assets and your IRA will be held in the trust for your son, but the life insurance will be paid outright to him. If your intention was for your son to not have complete ownership and control of anything he inherits from you until he is 26, your “uncoordinated” plan defeats your objective.

To assure you have (and keep) a “coordinated” estate plan, check asset titling and all beneficiary designations when you make a Will or Revocable Living Trust or make changes to those documents.

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.

Somebody To Turn To

By: Barry G. Allen, President & CEO 

One of the discoveries I’ve made in my 16+ years as KBF president is a large number of Kentucky Baptist church members do not know to whom to turn for information about simple, basic but important estate stewardship issues, and about Christian estate stewardship in particular.

Among the reasons the Kentucky Baptist Foundation was established sixty seven years ago in 1945 as the “trust agency” for Kentucky Baptists was to provide Kentucky Baptist church members a reliable resource to which to turn for information about their basic estate stewardship and charitable gift planning questions. The information we provide is not legal or tax advice. Church members will still need their own advisors.

KBF staff members are available to provide information by telephone, by email and by an in person visit in our office or at the church member’s home.

We can be contacted in any of the following ways: (1) call toll free (KY only) telephone number 866.489.3533 or 502.489.3533; (2) write us at P.O. Box 436389, Louisville, KY 40253-6389; or (3) browse our website www.kybaptistfoundation.org for email contacts.

If you prefer to browse the website, before contacting us or in lieu of contacting us, you may find the information you need, because the website was designed to be a user friendly 24/7 source of information about estate planning, charitable gift planning and legacy gift planning as well as information about the services of the KBF to church members and to churches.

Let me also encourage you (1) to follow us and “like” us on Facebook at www.facebook.com/KentuckyBaptistFoundation; we post articles regularly about estate stewardship and others giving ideas; (2) subscribe to the Western Recorder print or on line version to which Laurie Valentine and I contribute articles on a regular basis; (3) follow me on Twitter @KBFBarry; and (4) call us to subscribe to our quarterly newsletter, Living Legacy.

Please know your Kentucky Baptist Foundation has stood “steadfast and solid since 1945” and continues to be that “somebody you can turn to” for information by the communication method most convenient and desirable to you to answer your simple, basic but important estate stewardship and charitable and legacy gift planning questions.

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.

Passing On Digital Assets

By: Barry G. Allen- President & CEO

What will happen to your social media, email and other online accounts that might have financial or sentimental value after you are gone? Unlike my parents’ and grandparents’ situations, my children and grandchildren will not find my photo albums in an old chest in the basement or attic; instead they will find my chest of photo albums in my computer – that is – if I have given them instructions about how to find them before I am gone.

Digital assets include digital files which are stored on your computer, cell phone, a separate disc or on the internet. They include online accounts that require one to enter a user name and a password to access them. Digital files can be critical for identifying your assets, debts, heirs and friends. They likely will have either monetary or sentimental value. As you save more and more documents, photographs and other matters in a digital format, the importance of planning for passing on these digital assets to your heirs becomes increasingly more important.

Therefore, we encourage you to contact your estate planning attorney to discuss including provisions regarding your digital assets in your power of attorney, will and revocable living trust. Create a reference guide that includes a list of every site on which you have an online presence, along with your user names and passwords. Update it regularly as you add new sites and make changes in your passwords.

For additional information on this subject, click on this website: www.thedigitalbeyond.com. Other online resources related to the storage of digital assets and information about online accounts are:

Legacy Locker www.legacylocker.com
Entrusted www.entrustet.com
AssetLock www.assetlock.net
MyWonderfulLife www.mywonderfullife.com
SecureSafe www.securesafe.com

Dealing with digital assets after someone dies has become a huge challenge both for families and the legal system in every state. As Christians dealing with digital assets is part of that estate stewardship responsibility about which the apostle Paul advised and warned in 1 Timothy 5:8. Therefore, let us not “deny the faith,” and be “worse than an unbeliever.”

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.