Moving Mountains and Building Dreams: How to Leverage the Value of Land
The well is in and we have an ample supply of good water. The RV hookups for the Laborers are in, as well as the utilities. The garage has been built. There is a bathroom, washer and dryer, and an air conditioner in the garage. This will be the place for the workers to congregate for devotions and breaks. The basement has been dug and by the time you read this, hopefully the concrete will have been poured. Now, we need volunteers - lots of volunteers - every week, Tuesday through Saturday. The more we have, the sooner the work will be completed and the sooner we will be able to put the facility into service. We will need builders, painters, sweepers, wire pullers, brush cutters, tree trimmers, landscapers and a host of other things. Call us at the District Office (800-357-4421 ext. 101) and tell us when you can work and we will let you know what work is scheduled for that time and if you need to bring any tools. Please consider giving one, two or more days for this facility. You may find yourself working alongside Executive Staff from the District Office!
Letters were sent to all professional church workers encouraging them to spend one day (from noon on Wednesday through noon on Thursday) working on the retreat center. Our hope is that actually being on the site and helping to build the center will encourage all workers to take advantage of this wonderful facility. To have some fun along the way, we're sponsoring a friendly competition among circuits. The two circuits working the most hours will get a banquet provided and served by the Kansas District staff. So workers - round up some volunteers from your congregation and spend a day (or more) helping build your retreat center! If you can't attend the dates that were set aside for your circuit, just pick a time that works best for you. Just let us know when you plan on coming - contact Doris at ext. 101, Barb at ext. 100, Tami at ext. 200 or Lori at ext. 223.
If building is not your thing, there are other ways you can participate. The Laborers for Christ and the volunteers would love to have snacks and beverages for their break times. Meals for the Laborer couples would be greatly appreciated.
Fundraising is ongoing - for building, for furnishings, to support the Laborers and volunteers, and for an endowment fund to help professional workers utilize the retreat center.
In the works is a Retreat Center page on our District website. On this page you will be able to view photos showing the progress made, what tasks are on the agenda for the week, any tools you may need to bring, other needs for the Laborers and volunteers, and stories from volunteers. We'll let you know as soon as the page is up and running!
Where do I start? What do I want to do with my estate? How do I give a share of my estate to the Lord's work? Which assets are the best to give to the Lord's work?
These are all questions I hear everyday. I suspect questions like these are the reason many people do not have a Will or Trust.
Where do I start? I have developed a questionnaire that helps me get you started. I lead you through a process that allows you to communicate with the attorney what it is you want your Will to say. Who do you want to name as your beneficiaries, and executor? I will not answer these questions for you, but will encourage you to make the decisions. This is the first step in completing your estate plan.
What do I want to do with my estate? Many times people are really unclear how to move their estate to the next generation. We will spend as much time as necessary to help you arrive at a decision that you will be comfortable with. We may even bring in the children in a family meeting to discuss the plan. The plan may be very simple or, depending on the type of assets, very complex. Most of the time it is not necessarily the size of the estate as much as it is the type of assets in the estate.
Most people I work with do want to leave a share of their estate to the Lord's. Many people don't realize it may make a great deal of difference which assets go to the Lord's work. I will make you aware of the various tax laws that affect the particular type of asset you have. With good planning, the gift to the Lord's work may be a very bad asset for your children, but a very good asset for the church. With that type of planning, we can increase the amount going to the children and to the church.
I am here to serve you and help you accomplish what you want to accomplish with your estate. I will help you do what you want to do. Please feel free to call my office at 785-357-4441 Ext. 101 for this free service provided by your church.
Kansas District – LCMS Board of Directors has long realized the need for healthy professional church workers and has maintained a retreat center for them to use as a place to renew, rejuvenate and rest both physically and spiritually. For a long time, the District maintained two retreats – one in Arkansas and one on Tuttle Creek Reservoir in Manhattan , Kansas – both were gifts to the Kansas District.
In January, 2006, the BOD decided to dispose of both properties because of distance and inaccessibility. Since the need was so great, it was decided to use the proceeds from the sales to purchase land and build a new more centrally located facility.
Garry Niehoff, the Planned Giving Counselor for the District, was given the charge to seek out a location. He found a 9-acre tract adjacent to Herington City Lake which has been purchased with the proceeds and gifted monies.
A 3,000 square foot building with bedrooms, baths, kitchen facilities, prayer room, and study on the main floor and a large meeting room in the basement has been designed. It will, of course, be handicapped accessible.
Priority will be given to professional church workers and their families with contingent plans to use the meeting room for such events as circuit elder's conferences and confirmand retreats.
The planning stage is almost complete and construction is scheduled to begin in April with an October completion date. The District is serving as general contractor with Garry Niehoff and Les Walter serving as on-site supervisors. After the building is completed, there will still be landscaping and development of hiking trails, etc.
The funding stage is on-going. Monies are still needed for furnishings and establishing an endowment fund to give grants to workers who may need the facility but are not able to pay the rental fee. A gift of $10,000 from each of the 17 circuits is the goal for this purpose.
If this is a ministry in which you would like to participate, please contact Garry Niehoff. Garry will be happy to visit with you. To make an appointment, contact him at the Kansas District – Lutheran Church-Missouri Synod Office, 1000 SW 10 th Ave. , Topeka , Kansas 66604 , or call 1-800-357-4421, ext. 101.
Death is not one of those moments. The silence that takes the place of a loved one's voice can be avoided. Given the opportunity, most of us would go to great lengths to ease the sense of loss felt by children, siblings, spouse and loved ones at the time of our death. And though it may not typically be thought of in these terms, the last will and testament is really the instrument that gives voice to your final communication to those you love. A will provides the loving framework for communicating important issues (like the guardianship of minor children), specific instructions for the distribution of assets, and the articulation of your hopes and dreams with respect to the legacy you leave behind. Where a will is concerned, silence leaves all decisions in the hands of the court.
To learn how easy it is to create a legacy of love, call or write our The Kansas District-LCMS Planned Giving Office, 1000 SW 10th, Topeka , KS 66604 -- 785-357-4441, ext. 101.
If you are like many individuals who hold appreciated stock or real estate, you may be concerned about the high cost of capital gains tax upon the sale of your assets. Perhaps you recently sold appreciated property and are looking for a way to offset your current tax liability. And if you are entering your retirement years, you may be looking for ways to increase your income for the future.
A charitable remainder trust permits you to make a gift of your property to charity and take advantage of numerous tax benefits including:
• Bypass of capital gains tax
• Increased income
• Charitable deduction
For more information on the benefits of establishing a charitable remainder trust, please write or call our office . . . and of course, there is no obligation.
When a bequest does come in, they realize they have work to do so they can use the money for the Lords work in a way that would be pleasing to Him. The sky is the limit as to what this ministry might be. The communities we are in have a lot of different needs and we as the local church have a diverse ability to serve those needs. The endowment fund committee will need to spend some time deciding which of the needs your church has the ability to fill. The committee meets and plans the ministry and gets approval from the congregation to do that ministry.
Our church body in involved in a very exciting movement called Ablaze! This is a movement to share the Gospel with 100 million people by the year 2017. An endowment fund may be very appropriately used to give us opportunities to share that Gospel. It can be used to enhance our ministry to serve the community and demonstrate we are a caring church that is interested in providing services that may not be available from other sources.
An endowment fund may fund many initiatives that would give us opportunities to serve the people of our congregation and our community. This may be social programs, volunteer programs or anything that fills a gap in our community, such as making people aware of division of assets, or helping them file health claims. It may give us money to set up volunteer groups that make sure that no one eats a meal alone on a major holiday. It may give us money to fill a hole that meals on wheels may miss.
Durable Power of Attorney for Medical Decisions
This instrument is executed at the time a person is mentally competent giving instructions to an agent called “Attorney In Fact” in the event the person becomes incompetent or cannot communicate his or her wishes regarding medical treatment. This instrument grants the agent the power to make all medical decisions for the incapacitated party up to, but not including, the decision to withdraw or withhold life support equipment.
Power of Attorney for Business Decisions
This instrument is executed at the time the person is mentally competent appointing an agent called “Attorney In Fact” to make all business decisions for that party in the event he or she becomes incompetent and cannot carry on business affairs for themselves. This would include payment of bills, collecting debts, selling property, filing income tax returns, settling lawsuits, and all other day-to-day business affairs of the incapacitated party.
Natural Death Declaration
This is executed at the time the person is mentally competent and gives the hospital and physicians directions in the event the person becomes incompetent and unable to communicate his or her decisions. This instrument instructs the hospital and physicians that if the person has an incurable injury, disease, or illness certified to be a terminal condition by two physicians who have personally examined the person, one of whom shall be the attending physician, and the physicians have determined death will occur whether or not life-sustaining procedures are utilized and where the application of life-sustaining procedures would serve only to artificially prolong the dying process, directs that such procedures be withheld or withdrawn, and the person be permitted to die naturally with only the administration of medication or the performance of any medical procedure deemed necessary to provide comfort care.
In the absence of the person's ability to give directions regarding the use of such life-sustaining procedures, this declaration shall be honored by the family and physicians(s) as the final expression of the person's legal right to refuse medical or surgical treatment and accept the consequences from such refusal.
This instrument does not require the naming of an individual or institution designated as the decision-maker. Decisions are to be made by the parties' attending physician and consulting second physician.
Many people have asked what a charitable bequest is.
A charitable bequest is a written statement in your will or trust directing a gift be made to a qualified charity as part of the disposition of your estate. A charitable bequest is one of the most flexible estate planning tools because it can be changed at any time. This ability to remain in complete control of your property during life makes a charitable bequest one of the most popular methods of giving.
What Type of Bequest Should You Consider?
Though making a charitable bequest is a flexible and easy way to ensure the impact of your legacy, there are some important things to consider before incorporating a charitable bequest into your estate plan. The property passing by bequest through your will is subject to probate. Also, the amount of your bequest and the type of your bequest will depend on the value of your estate and the specific assets in your estate.
There are several types of charitable bequests. Depending on your needs and objectives, one type may be better suited for your estate plan than another.
- Gift of a percentage of your estate
- Gift of a specific asset
- Gift of the residue of your estate (the assets that remain in your estate after other bequests, tax and administrative costs have been satisfied)
How to Redefine the Bottom Line
Anyone who spends much time around the subject of economics knows that there are multiple facets to almost any equation. Personal investing and financial planning are not too different.
On one hand, an investment can multiply in value over time. On the other hand, when it comes time to consider selling that asset the tax implications can appear to make a significant portion of that increase evaporate!
In fact, in recent years a number of LCMS members have experienced this reality first hand. Many who invested in certain types of property, as well as many sectors of the stock market, over the past decade have witnessed dramatic growth in the value of their investment. It is not at all unusual for a $10,000 investment several years ago to represent an asset valued at $50,000 or even $100,000 today. At the same time, these assets often produce little or no current income.
For an individual or couple nearing retirement, this scenario doesn't add up. Attention almost always turns to identifying possible ways to redefine the bottom line and generate current and future cash from the asset in question.
However, with the prospect of selling such an investment comes the reality of long-term capital gains tax; and this reality is a somewhat harsh one. Selling the stock or property in question will instantly reduce the asset's worth by 15% of the increased value.
A Charitable Tax Plan That Meets Your Objectives
For those whose objectives include philanthropy, there is good news. Considerations have been built in to our tax laws that make it possible for you to literally redefine the bottom line – for yourself, for your family, and for those you love.
One example of this is a plan that combines the sale of an appreciated asset with the versatility of a legal trust agreement known as a Charitable Remainder Unitrust (CRUT).
This Sale and Unitrust plan makes it possible for you to:
- Increase the income stream represented by this asset
- Create some immediate liquidity through the sale of a portion of the asset
- Realize a philanthropic dream
Through some careful planning you can gain immediate cash, enjoy increased annual income, and make a generous charitable contribution – all made possible by the Sale & Unitrust plan for highly appreciated low yield assets.
If you would like to explore how the Sale and Unitrust plan can help you maximize the value of an asset, we invite you to call or write for a free copy of our brochure – Redefining The Bottom Line . It's our gift to interested friends . . . and of course, there is no obligation.
70 ½, the Federal government now permits you to rollover amounts from your IRA to charity without claiming any increased income or paying any additional tax. These tax-free rollover gifts could be $1,000, $10,000 or any amount up to $100,000 in one year. Here are several reasons why you might want to take advantage of this special opportunity.
Simple, Easy Gift
If you are like many individuals, your IRA has increased in value over the years and you have more income than you may need. The IRA rollover gift is a simple and easy way to provide for your favorite charity, while not increasing your taxable income. Simply contact your custodian and request that an amount be transferred to charity. Charity gets a nice gift and you avoid any additional tax.
You Can Give More!
Perhaps you have already made cash gifts to charity this year up to the Federal limit. Your charitable deductions for cash gifts are limited to 50% of your adjusted gross income for a given year. Maybe you are a generous donor and desire to give even more this year. With an IRA rollover gift, you can transfer excess funds from your IRA to charity and still make your regular cash gifts up to the Federal level. You can give more without paying any more in tax.
Make a Major Gift
Perhaps you are considering your tax planning goals and would like to make a major gift to charity. Like many individuals, your IRA may be the largest asset in your estate. Your CPA may be looking for ways to save taxes. By making annual IRA charitable rollover gifts of up to $100,000, you can reach your goals of helping charity in a significant way and reducing taxable income.
Since the earliest days of our country, land has been recognized as one of the assets central to the American Dream. Leveraging land for the best possible value is a practice with which Americans are very familiar.
With the right plan, mountains are moved, and dreams are realized. However, it is not at all unusual for a family's portfolio to contain appreciated land acquired a number of years ago during an asset accumulation period.
In cases like this, sometimes the obstacle to realizing dreams is the land itself; finding a way to move the property can be easier said than done. Selling the land outright will trigger a capital gains tax on the appreciated value. So, in the case of a piece of land that was acquired for $20,000 and is worth $200,000 today, the tax bite will be more than $27,000.
Rather than selling the land and incurring significant shrinkage due to the capital gains tax, charitable tax planning makes it possible to:
-----Bypass the capital gains tax of $27,000;
-----Receive a charitable income tax deduction based on the full fair market value of $200,000, saving $60,000 in income taxes; and
-----
Make a significant gift to charity of the land.
Since a qualified charity like your church is able to sell the land without tax consequences, the full $200,000 can go to work realizing your charitable objectives, and our tax laws reward your generosity with a significant reduction in the taxes you owe – meaning that the land actually ends up generating $260,000 in actual value. A very nice way to use the tools available for maximum leverage!
Variations on the plan discussed here even make it possible to give a portion of the property, engage in a joint sale of the property with charity, and generate personal revenue from the sale.
If you'd like to explore this plan, or other ideas that leverage your assets and your charitable intent, you're invited to contact our office.
Retirement planning is one of those things we tend to view from one perspective – the years in advance of retirement. But over the past couple of decades many individuals and families have done such a good job of creating a nice nest egg for those “golden years” that a whole new window on the issue has opened up.
Our tax laws encourage, even facilitate, the building of retirement funds through a variety of “qualified plans.” However, these funds (and the benefits associated with them) are not intended to be inheritance plans. So, when a retirement plan makes up a portion of the estate at death, it is subject to taxation specifically designed to make up for the tax-deferred benefits afforded while the fund was being built.
As a result, a retirement plan could be hit with taxes (estate and income taxes) equaling as much as 60%! A $1 million dollar fund could shrink to $400,000 or less.
However, there are a number of options which make it possible to avoid this kind of tax-bite at death. As is often the case, for individuals whose planning includes a philanthropic thrust, some careful planning can insure that shrinkage is minimal.
All that is required is that you view your retirement plan from a new perspective. With the help of a professional well versed in the options, you can insure that every asset in your estate has maximum impact – making it possible for your hopes and dreams for family, friends and church to be realized.
So while it may be a considerable different window on the future, a little planning can mean that even those funds you've set aside for retirement can have impact far beyond your golden years. If you'd like information on some of the options open to you, call or write our office. There is no cost or obligation.
Expressions of philanthropy are intensely personal. And thanks to strategies made possible in large part by tax laws that recognize the benefits of philanthropy, there is more than one way to demonstrate your support for your Church.
Since the earliest hours of our history as a nation, the support of organizations that strengthen the fabric of our society has been encouraged.
Today there are tax incentives for making gifts of cash before December 31 that can reduce your taxable income for the calendar year. Gifts of stock and real estate also may produce tax benefits and savings.
Trust agreements make it possible to bypass capital gains tax on appreciated assets, receive a tax deduction, and even increase income. And, of course, bequests via the Last Will and Testament offer a way for anyone to give lasting voice to important values.
For more information on the ways to make a charitable gift, call or write our Planned Giving Office -- Kansas District - LCMS -- 1000 West 10th Avenue -- Topeka , Kansas 66604 -- 785-357-4441, Ext. 101
An estate plan should be a roadmap that is easy to follow. It should move your assets to the next generation by minimizing taxes and avoiding probate. What are some of the “potholes” of estate planning?
An incomplete plan could be a major “Pothole” in estate planning. Make sure you not only have an updated will or trust, but also supporting documents. Powers of Attorneys, both for business decisions and medical decisions must be executed while the person is mentally competent. Having Powers of Attorney executed at the same time as a will or trust is usually most convenient.
A Living Will is a legal document that states health-care wishes. This also must be executed while a person is mentally competent. It is pertinent to explain these choices to family members.
Keep you advisers abreast of your decisions. Estate planning requires the coordination of many different professional advisors. Keep you tax adviser, life insurance agent, attorney, and financial planner all informed so they can work together to insure you have the best plan possible.
If you would like more information, please call our office at 1-800-357-4421. We will be happy to answer any questions you might have regarding your estate plan.
An estate plan should be a roadmap that is easy to follow. It should move your assets to the next generation by minimizing taxes and avoiding probate. What are some of the “potholes” of estate planning?
Probate costs and fees can be a road block. If a plan does not work correctly, there can be litigation and extensive costs. Discuss with your estate planner methods you can use to help you avoid probate.
Every five years we encourage people to review their estate plans. We want to make sure it still does what they had originally intended. There are several events that should encourage one to review an estate plan. For example, a family member might be added or a person might pass away. If a parent or aunt or uncle passes away, the estate could be increased significantly by inheritance. State laws differ. A move to another state might be another reason to re-examine an estate plan. Finally, there are regular major tax law changes that could impact estate planning.
If you would like more information, please call our office at 1-800-357-4421. We will be happy to answer any questions you might have regarding your estate plan.
This is the third in a 5 part series on “Avoiding the ‘Potholes' of Estate Planning.”
An estate plan should be a roadmap that is easy to follow. It should move your assets to the next generation by minimizing taxes and avoiding probate. What are some of the “potholes” of estate planning?
Accidental disinheritance. Your estate may be distributed to an unintended party. Due to unclear legal documents, or changes in the property or family circumstances, the estate may be distributed to an unintended party. Be sure you periodically review your estate plan to make sure it still works for you.
Beneficiary designations and Payable-on-Death contracts need to be reviewed on a regular basis. These are contracts that pass life insurance, annuities, savings accounts, CD's, money market accounts, bank accounts and mutual funds to beneficiaries outside the will, thus avoiding probate. These need to be reviewed in case your goals change or your wishes changes.
If you would like more information, please call our office at 1-800-357-4421. We will be happy to answer any questions you might have regarding your estate plan.
An estate plan should be a roadmap that is easy to follow. It should move your assets to the next generation by minimizing taxes and avoiding probate. What are some of the “potholes” of estate planning?
Taxes can be a road block in estate planning. Many people fail to plan because they feel they do not have an estate tax problem. A person can now pass $2 million to their heirs tax-free. However, when we ask people why they plan, the number one answer is to take care of their spouse, the number two reason is to take care of their children, the number 3 reason is to take care of their church, and the fourth reason is a concern for taxes. The size of your estate should never dictate whether you plan the proper distribution of that estate. Most squabbles among heirs are over family heirlooms and not over money.
If you do have an estate valued at over $2 million then estate taxes can be a road block. Sometimes major assets that have been held for many years in a family must be sold to pay estate taxes. Strategic planning can help reduce the tax bill you leave.
If you would like more information, please call our office at 1-800-357-4421. We will be happy to answer any questions you might have regarding your estate plan.
An estate plan should be a roadmap that is easy to follow. It should move your assets to the next generation by minimizing taxes and avoiding probate. What are some of the “potholes” of estate planning?
Procrastination is one road block. People simply “don't get around to it.” If you die without an estate plan, your assets will be divided according to the laws of the state in which you live. Most people would like their estate to be distributed according to their wishes and not the wishes of the state legislature, or the court. You can have a good plan that allows you to decide. This decision process is put into motion by creating a plan, understanding the various transfer methods and making decisions concerning how best to benefit both family and charity.
If you would like more information, please call our office at 1-800-357-4421. We will be happy to answer any questions you might have regarding your estate plan.
We hear sentiments like this on a regular basis this time of the year. Do we ever stop to think what we are saying or what these words really mean?
In Christian stewardship, we hear God say that Christian stewardship is a joyous activity of serving. Something we do to truly serve our Lord.
As we approach the new year and hear and pass this sentiment on to others, let us begin to change our lives to truly live that way of life. Let us serve our Lord with a happy countenance and be merry in our service to Him and our fellow man. When we make this a way of life, it will be viewed as genuine and not something we are trying but only giving lip service to.
As we begin to live this new year in our service to you, it is my hope and Doris ' that our service will be much more effective and done in the true spirit of service to the people in the Kansas District.
Please call us anytime for a Wills Awareness Seminar, Endowment Fund, or “What in the World are We Here For” for Presentation. We look forward to the new year with excitement.
I close with this wish. Have a merry Christ filled Christmas and a happy and prosperous New Year.
The IRA charitable rollover is available for individuals who are age 70 ½ or older. It is a direct transfer to a public charity. Previously, some individuals would take a withdrawal from their IRA, report the distribution as taxable income, make a cash gift to charity, and then take a deduction on their tax return. Not only was this process rather cumbersome, it also resulted in increased adjusted gross income.
With the new law, the rollover is very simple. The transfer is directly from the IRA to the qualified public charity. The IRA rollover is not taxable on the donor's tax return and therefore, there is no need for a tax deduction. The IRA rollover will require a payment by your IRA custodian directly to a qualified public charity.
The first step is to contact the IRA custodian. You will need to sign the application, and indicate the amount of the gift and the correct legal name, city and state of the public charity.
This gift can be made for a specific purpose. For example, the gift could be made to the Kansas District – LCMS for scholarships, the Lay Leadership Training Institute, the retreat center, or for the Guinea Mission, CCCS, or Good Shepherd Lutheran Mission.
This charitable rollover is available for the tax years 2006 and 2007.
Each year it is the generous spirit of friends that makes our work possible. This generosity is evident in countless ways, including gifts of financial support. And while giving may seem a straightforward discussion, there are many ways that friends choose to make a gift. Some careful planning will ensure that your objectives are met. This is the final article in a series of five parts that will provide an overview of some of the most common ways to make a gift and the benefits of each.
Part V – Charitable Bequests
Next to writing a check, perhaps the best known vehicle for philanthropy is the bequest. A bequest makes it possible for you to make your wishes known today without relinquishing needed assets during your lifetime. Bequests can transfer a specific asset. You can also give a percent of the estate after costs and taxes. Another good idea is to transfer property to a testamentary trust.
If you would like more information on any of the strategies we have discussed in this series of articles or any other planning option, please contact our Planned Giving Office at 1-800-357-4421.
Part IV – Charitable Remainder Trust
The Charitable Remainder Trust is perhaps the most versatile charitable giving tool. With the CRT it is possible to bypass capital gains tax on the sale of highly appreciated assets, generate an increase in income, receive an attractive charitable income tax deduction, and fulfill your philanthropic objectives.
The CRT is a legal trust that can be constructed to produce a predictable annuity payment each year or take advantage of investment growth opportunities with income payments based on a growing trust principal.
For more information on how a Charitable Remainder Trust might multiply the impact of specific assets and help you realize the sum of your objectives for family and for charity please call our office at 1-800-357-4421.
Each year it is the generous spirit of friends that makes our work possible. This generosity is evident in countless ways, including gifts of financial support. And while giving may seem a straightforward discussion, there are many ways that friends choose to make a gift. Some careful planning will ensure that your objectives are met. This is Part III in a series of five parts that will provide an overview of some of the most common ways to make a gift and the benefits of each.
Part III – Gifts that Generate Income for You
The benefits of planning compound when you utilize one of a number of strategies that generate income as well as provide a number of other benefits.
The Gift Annuity is a great example of how a gift generates income for the donor. This is actually a contract between a donor and a charity that is part gift and part annuity. In addition to the annuity payment, the donor receives a charitable income tax deduction and a portion of each annuity payment may be tax-free.
The Deferred Payment Gift Annuity in which annuity payments are delayed for a number of years, offers rates that make it an attractive supplement to retirement income.
If you would like more information on how this might serve you, call our office at 1-800-357-4421.
Each year it is the generous spirit of friends that makes our work possible. This generosity is evident in countless ways, including gifts of financial support. And while giving may seem a straightforward discussion, there are many ways that friends choose to make a gift. Some careful planning will ensure that your objectives are met. This is Part II in a series of five parts that will provide an overview of some of the most common ways to make a gift and the benefits of each.
Part II – Planned Gifts
Sometimes called deferred gifts, the term planned gifts refers to specific strategies that (in most cases) benefit charity at some point in the future while offering immediate benefits to the donor.
The gift of a paid-up life insurance policy is a good example. By designating a qualified charity as owner and beneficiary of such a policy, you will receive a charitable income tax deduction that, in most cases, is equal to your cost basis in the policy.
If you would like more information on how this might serve you, call our office at 1-800-357-4421.
Part I - Current Gifts
The most common ways to make an immediate gift is by writing a check. This type of cash gift provides immediate liquidity for charity and generates a charitable income tax deduction for the donor in the year of the gift.
Giving stocks or bonds may provide greater tax benefits. If you have owned securities for more than one year and the fair market value has increased since you purchased them, you can avoid capital gains tax and receive a charitable income tax deduction equal to the fair market value.
A gift of real estate that has been held for more than a year also has the advantage of providing you with a charitable deduction based on the current fair market value, as well as bypassing capital gains tax on the appreciation.
Selected artwork, books and antiques are examples of gifts of personal property that can, in certain situations, be an appropriate gift. However, to ensure that any tangible personal property qualifies for a favorable charitable tax deduction, contact our Planned Giving Office at 1-800-357-4421 prior to making a gift.
In Biblical times, it was the exception for women to own property. The story of Ruth and Naomi is a reminder that widows often faced a meager existence if they had no family to provide for them.
Circumstances have changed dramatically in the 20 th Century. Some surveys indicate women control more than 90 percent of the personal wealth in the United States .
Despite this privilege, many women fail to make a will.
A will is an expression of your Christian stewardship. For a Christian woman, a will offer sthe opportunity to make a final, lasting gift for the work of the Lord. Can you think of a more special gift?
If you would like more information, call Garry or Doris at 785-357-4441 Ext. 101.
Many successful business owners start out with nothing more than an idea and a few dollars. The first years are generally lean, but after a lot of hard work and dedication, the fruits of their labor are realized. Because most small business owners start with relatively little capital, they usually do not form the business as a corporation or limited liability company, but rather report the business profits on their own personal income tax return.
This type of business, a sole proprietorship, does not have a legal existence apart from the owner. The owner holds title to all of the business assets and is personally liable for any outstanding debts or legal obligations.
Among the owners who operate as sole proprietors are many real estate investor, small retail storeowners, consultants, farmers, ranchers and authors. When these sole proprietors enter retirement, it is quite common for them to plan to convert some of the value of their business into an income stream. This is an excellent opportunity to consider a charitable gift plan that maximizes income and reduces taxation. For more information, please call our office at 785-357-44421, Ext. 101.
When planning a will or trust, many people focus only on distributing their money, property and possessions. But a Christian preamble allows you to share your true wealth - your belief in Jesus Christ and His gift of everlasting life.
A Christian preamble is a simple, personal
statement
of faith that can begin a will or trust.
This is a lasting opportunity to proclaim your love of the Lord to family and friends.
A Christian preamble is also:
A source of comfort to mourning loved ones. Family and friends are reassured that their loved one died in faith, sure of God's promise of eternal life.
A powerful message of encouragement. You can use your preamble to urge others to trust in Jesus Christ and strengthen their own faith.
A public record of Christian love. Because a will is filed in probate court, a Christian preamble becomes a public record. Many people write their own Christian preambles, often including a favorite Bible verse. Others offer their final prayers for loved ones, mentioning them by name and encouraging them to grow in faith.
Imagine the comfort and assurance such a personal message could offer grieving family and friends!
As your Planned Giving Counselor, I can discuss Christian preambles with you, share examples, and if you wish, provide a basic outline for you to follow.
Along with Christian preambles, I also can provide information about wills, trusts and other gift and estate planning opportunities that can make a difference to people you love and ministries you care about. For more information, call my office at 1-800-357-4421