Do I Really Need A Will?

By: Richard Carnes

Is it truly necessary for us to have wills? This is a common question we receive at the Foundation.

The answer is: Yes, you need a will!

Yes, there are multiple ways to pass property to a surviving spouse, such as joint tenancy with right of survivorship, and beneficiary designations. Nevertheless, everyone should have a will for the following six reasons:

1. There likely are items of personal property—jewelry, collections, household items, etc.—that you and your spouse own individually and that are not governed by joint tenancy or beneficiary designation. 
2. Even supposing that everything passes to your surviving spouse by right of survivorship or beneficiary designation, the surviving spouse would need a will to direct the disposition of assets upon his or her death. 
3. If you and your spouse should die in a common disaster without wills, your property would be distributed per the intestacy laws of the state in which you reside—and these laws might not conform to your wishes. Also, the person selected by the court to administer your estate might not be the person you would have chosen. 
4. If you have minor children and are not survived by a spouse, you can designate a guardian for your children in a will. 
5. In a will you can provide for the particular needs of your children and other loved ones. For example, you might establish trusts for children or grandchildren when a stream of income is more advisable than a lump-sum gift. 
6. In a will you can leave some portion of your estate to your local church and other Christian ministries. You can also do this by naming a charity as beneficiary of an insurance policy, a retirement fund, or a bank or investment account. But when you have a will, you can choose which gifts to make in your will and which to make by beneficiary designation. 

Call upon the Kentucky Baptist Foundation as a helpful partner in these vital planning decisions. You may contact us at our toll-free number (866) 489-3533.

Richard Carnes is the president of the Kentucky Baptist Foundation.

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 Do You Need A Will?

By: Richard Carnes

Jane Bryant Quinn, a nationally known personal finance commentator, was asked why a person needs a Will. Ms. Quinn answered with the following common sense reply: “You own stuff; you will die; someone will get your stuff.” This response is certainly a good reason to have a personal Last Will and Testament, but there are several additional reasons for preparing your personal Will:

· To be a good steward – a good estate plan reduces death taxes and probate expenses, leaving more for you to pass to your family and charitable causes at your death.

· To avoid the “Will” the state has written for you – Kentucky’s “Intestate Succession Statute” – the state’s plan of asset distribution may not meet your family’s needs or accomplish your estate planning objectives.

· To retain input - Making a Will allows you to determine who will get your “stuff” (your assets) and how the recipients will receive your “stuff” at your death.

· Making a Will allows you to designate whom you want to be appointed as guardian for your children if both parents die before your children reach age 18.

· Making a Will assures smooth administration (probate) of your estate at your death.

· Making a Will allows you to name an executor who will handle the tasks of determining what you own at death, paying your final debts and expenses, managing the assets in your estate, preparing all required tax returns and distributing your assets as your Will directs.

The Kentucky Baptist Foundation’s “Estate Planning Mistakes and Solutions” seminar can provide more answers about why you need a Will. Contact Richard Carnes at richard.carnes@kybaptist.org to schedule this one hour, free seminar at your church.

Also, if you have questions about Christian estate planning strategies or want to request a private estate stewardship consultation, please contact the Kentucky Baptist Foundation’s trust counsel, Laurie Valentine at laurie.valentine@kybaptist.org or call the Foundation’s toll-free number (866) 489-3533.

Richard Carnes is 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.

A Christ-centered Will

By: Barry G. Allen

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 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.

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.

Ways to Give to Baptist Causes

By: Laurie Valentine-COO & Trust Counsel 

Your church, association and the Kentucky Baptist Convention and its agencies and institutions have a wide variety of important ministries that need financial support to launch them into reality or to continue or expand their existing programming. The methods by which you may support these important causes through legacy giving (giving out of your assets, rather than your income) are also wide-ranging.

An outright gift of cash, appreciated securities or real estate is probably the most common, and simplest, way to make gifts during your lifetime.

Other methods of lifetime giving, such as charitable gift annuities and charitable remainder trusts, allow you to provide a future benefit to one or more Baptist causes while retaining an annual income for your lifetime or a term of years.

There are also a variety of methods you can arrange now to benefit the causes of your choice at your death. The most common is a bequest in your Will or Living Trust. Another possibility is to name a Baptist cause as the beneficiary of some portion of your IRA or a life insurance policy no longer needed for family security.

You can designate your gift be used for a specific program or ministry of the benefiting organization, rather than giving the organization the choice of how to use your gift. You may also want to limit the organization to using only the earnings off what you give (this type of arrangement is called an “endowment fund”).

Gifts may be made directly to the benefiting organization or may be given to a third party, such as the Kentucky Baptist Foundation, to manage for the designated beneficiary cause or causes.

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.

Did You Know?

By: Laurie Valentine-COO & Trust Counsel 

· That between 60% and 70% of all adults in the United States has never written a Last Will and Testament? Making a Will is the single most important act of Christian financial stewardship we will ever take.

· That for those who have not written a Will, the state in which they reside has a plan of asset distribution written for them? Here in the Kentucky that plan is called the “Kentucky Intestate Succession Statute”. There is a good possibility that Kentucky’s “Will” sets up a plan of distribution that doesn’t meet your family’s needs or your wishes regarding how your assets will pass at your death.

· That the court will decide who will rear any minor children if both parents are deceased and they have not made a Will or included a nomination of guardian provision in their Will for their children? This is a far more important issue than where your assets will go.

· That Kentucky’s plan for asset distribution does not include your church or any other Christian ministry? You also forfeit the option of creating provisions that will benefit both your family and the Lord’s work.

· That without a properly drawn Will, the death taxes and cost of administering your estate may be higher, thereby reducing what will be available for your family?

· That by having a properly drawn Will, you get to choose who serves as executor and guardian for your children? You also get to decide who gets what and when they get it!

· That by having a properly drawn Will you are helping to ease family friction at your death? This is especially important at a time when your loved ones are grieving your loss.

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.

Why You Need a Will

By: Laurie Valentine-COO and Trust Counsel

If you die without a Will, the state will decide how to disburse your estate. And if you have minor children, the state will decide who will raise them. If you haven’t made a Will your plan to leave certain assets to specific persons or make charitable gifts to various causes won’t happen; instead the state’s plan will govern.

Each state has laws directing how to distribute the estate of those who have not made a Will. The state’s plan may direct distribution of your assets to persons for whom you may not want to provide. The court will assign someone to oversee the probating of your estate. It will all be done “by the book.” No special gifts to people outside your family. No provision for churches or other charitable causes you might want to honor with a gift at your death. No concern for your thoughts and desires.

In effect, the state says, “You did not create a Will while you were living and now it’s too late. We will take over and make our own decisions about how it should be distributed.”

Just imagine the difficulties this may cause for your family or friends. Imagine the added expense for an additional layer of oversight. Imagine people you never knew making decisions about your most personal items.

There are many reasons people never create a Will: fear of death; uncertainty about estate distribution; family conflicts; expense; procrastination; no lawyer. However, the plain fact is, no excuse is justified if it allows you to die without a Will.

You don’t need all the answers to get a Will started. You can begin with what you know and make changes and/or additions as you progress. Better to have something workable in place, than nothing at all.

And, make sure you review your Will on a regular basis. As what you own changes over your lifetime and as changes occur in your family (marriages, births, deaths, etc.) your plan will very likely need to be revised and updated.

Make sure you have taken steps to accomplish the single most important act of financial stewardship a Christian can do-----making a Will.

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.

Take Charge

By: Barry Allen- President & CEO

Why do so many adults procrastinate when it comes to putting in place an estate plan, and especially given the downside risks and potential financial and emotional costs to one’s family by not having a plan in place if he or she becomes incapacitated or dies?

From our experiences in conversations with those with whom we come in contact as we speak in churches, we have discovered some common themes among those who have confessed to being a procrastinator. Some simply dread pondering matters related to death and incapacity. Others find it awkward to discuss such matters with family members or professional advisers. In some instances people conjecture such planning will be too costly and an unnecessary expense given their modest estate.

Taking charge and planning ahead is worth the effort and expense, and it’s biblical. The Apostle Paul advised and warned the Christians of his day and now us Christians today if we did not anticipate future possibilities and realities and put in place a plan to accommodate them we have “denied the faith and are worse than an unbeliever.” (1 Timothy 5:8). By planning ahead you are in control of how and when that which God has entrusted to you will pass to your heirs and your charitable interests when you are no longer around or no longer capable of managing it.

Failing to have a plan, or update one’s outdated plan, is the biggest mistake one can make, therefore, it behooves you to take charge and not procrastinate any longer. Get those important documents, like a will, power of attorney, health care surrogate designation and living will directive, prepared, updated and executed promptly. We suggest you engage an attorney who practices in the estate planning field. We discourage the use of do-it-yourself on-line forms. An estate planning attorney will be able to produce the documents that are tailor-made to your particular situation and which conform to the laws of the state of which you are a resident.

To the extent we can help you get started with the process, please give us a toll-free call. There is no cost for an estate stewardship consultation. Also, invite us to conduct a Christian estate planning seminar in your church at no cost.

You can contact us at (502) 489-3533 or 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.

Who will take care of your child if you die?

By: Barry G. Allen- President & CEO

As a parent you may find this question a difficult one to answer. I trust, however, you will agree it is a crucial question you must answer – and – the sooner the better. Not to answer this question leaves the fate of your “orphaned” child entirely up to a stranger, namely, a judge. Therefore, naming a guardian for minor children in a will is one of the most important stewardship actions a parent should perform.

Remember, a guardian isn’t forever. If you decide to change the guardian you can always make that change either with a codicil to your will or a new will. For example, if your child or children are young, their grandparents may be the best choice; however, when they become teenagers, grandparents may no longer be the wisest choice. The person or persons you choose do not have to be blood relatives; it should be someone you feel would be the best surrogate parent.

Geography, religion, education, family size, financial resources and lifestyle are also important factors in choosing a guardian. You might decide an aunt, your sister, is the clear choice, but she lives quite a distance away in another state. As a result, your children could be uprooted from their community, church and school at a time in their lives when they most need those relationships.

After considering all of the relevant factors, you may conclude you still have not identified the “perfect” candidate, and therefore, you continue to delay the decision. Perhaps in such cases an imperfect choice would be better than no choice at all.

And, finally, I recommend you talk in advance to the one you choose, and secure his or her consent before naming them. Although the law does not require it, it’s the prudent thing to do. Even though the overwhelming majority of guardians named in wills never have to fulfill the duty because most minors reach age 18 with at least one parent alive, it’s wise stewardship to name one. So, parents, don’t wait! And, grandparents, make sure your children have taken care of this for the sake of your grandchildren.

More for Christ Via Your Will

By: Barry G. Allen- President & CEO

Traditionally the month of January has been set aside by churches as “make your will” month. Since 60% of the population dies without a will, and it is estimated that 70% of the 40% who have a will do not have a currently updated will, the “make your will” month emphasis is a worthy one indeed.

Since the scriptures clearly reveal everything we possess, regardless of how much, is from God, and He has entrusted it to us to use wisely and for His purposes; and since how we plan our estates likely will be the single most significant act of stewardship we shall ever perform, it is, vitally important to use the best resources available to you in this process. The Kentucky Baptist Foundation is one of those resources, and specifically our estate stewardship consultation service. I encourage you to set aside some time between now and January prayerfully to consider a “more for Christ” provision in your estate plan. Perhaps you should consider a tithe or more of your estate to advance Christ’s Kingdom in the future through your church and other Christian ministries in which you are involved. Offering plate gifts alone will not be sufficient. A “more for Christ” provision in your estate plan offers you the opportunity to make a lasting difference for the cause of Christ beyond your lifetime. A “more for Christ” provision could be in the form of a bequest provision in your will or trust, or a beneficiary designation of retirement plan assets or a life insurance policy. You may be in a circumstance where it would be more desirable beneficial to you to go ahead now and make a “more for Christ” legacy gift rather than defer it through a provision at death. We stand ready to provide you information about all of the “more for Christ” giving ideas and their benefits.

Also, I encourage pastors and stewardship leaders to use January 2012 as “make your will month.” Let us assist you with ideas for bulletin inserts, websites and newsletter as well as our stewardship education seminars.

The Ten Biggest Estate Planning Errors

By: Laurie Valentine- COO and Trust Counsel

1.  Not executing a Will.  If you don’t make a Wall, Kentucky will do it for you.  Your assets may not go where you want and, if your estate is big, unnecessary taxes may be paid.

2.  Wanting just a “simple Will.”  Some people leave their spouse everything regardless of the estate’s size because the spouse pays no estate taxes.  For estates over the estate tax exemption ($5,000,000 for persons dying in 2011 or 2012), that could cost your heirs.

3.  Putting everything into joint tenancy.  While that avoids probate, joint ownership between spouses has the same danger as a simple Will.  If you own property jointly with others, like children, “your” property may become subject to the claims of the child’s creditors and you may get taxed on your own property if the child dies before you.

4.  Thinking that avoiding probate will avoid taxes.  It doesn’t always.  There are advantages to avoiding probate, but saving taxes isn’t generally one of them.

5.  Leaving property to one child to “work things out.”  If you leave your assets to one child, they are not obligated to give it to other members of your family.  It may even cost them in gift taxes to redistribute your assets as you would have wanted.

6.  Letting your children “take care of” your grandchildren.  In larger estates, it may cost less for you to leave property to grandchildren directly rather than letting your children do it through their own estates. 

7.  Failing to consider how your affairs will be handled if you become incapacitated as the result of a stroke, accident or illness.   If you don’t plan, a costly guardianship may be required to give someone authority handle your personal and financial affairs.

8.  Not using trusts to help beneficiaries handle their inherited wealth.  You can ease beneficiaries into the management of inherited wealth with the use of testamentary trusts. 

9.  Not planning for taxes that may be due at your death.  Children may be forced to sell important family assets at reduced prices if you do not have a proper plan in place.

10.  Procrastination.  The government will love you for this.

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.