presented by marc carmichael r&r newkirk company stewardship kaleidoscope
TRANSCRIPT
Presented byMarc Carmichael
R&R Newkirk Company
Stewardship Kaleidoscope
Why Launch a Wills Program?Majority of planned gifts come from willsSimple gifts to understand and promoteAny church can do itDonors more likely to consider major gifts
through their estate plans than during lifeStarting point for a planned giving programIn the immortal words of Willie Sutton:
That’s where the money is!
The Bequest ProspectIs generally a
member or past member of the congregation
Has sufficient wealth to make a bequest
Is retired or nearing retirement age – but younger donors should be encouraged
Four Ages of Estate Planning?30s-40s are
making their first wills
50s-60s changing family situations
65-75 age group seek income security, money management
75+ reviewing plans for final dispositions
“Will you include our Church in your will?”
Where did donors first get the idea to make charitable gifts by will or trust?
No. 1 answer: Publications received from the organization.
Obtain a Basic Wills Brochure
Message to MembersYou need a willHere’s how to get a willReview your will regularlyHere’s how to name our church in your will (include your correct legal name and sample bequest language)
Please tell us about your bequest
If Your $ 500 You Can $ 12,500
Annual $1,000 Perpetuate $ 25,000
Gifts $1,500 Them with a $ 37,500
Total: $2,000 Bequest of $ 50,000
$5,000 at Least: $125,000
Websites
Planned giving web page should tell the world you are glad to receive bequests
Provide your church’s correct legal name
Estate Planning Seminars75% estate
planning, 25% gift planning
Lots of breaksRotating roundtable
discussionsIndividual
CounselingFamous estates
Lexington House (859) 277-6135
Bequest Administration
List matured bequests in a Wills JournalRequest copy of decedent’s willEstablish procedures for tracking status of
probate proceedings and anticipated distribution of funds
Consider bequest tracking software
Registry of Bequest Expectancies
Name of donorAddress of donorSize of bequest (or
estimate)Source of
information about bequest
The “Iceberg Effect” in Wills and Bequests Programs
Many planned giving officers say only 25% of donors disclose bequest expectancies in advance. Anticipate that 75% of matured bequests will arrive unannounced.
Goals for Your ProgramValue of gifts or
expectanciesNumber of gifts or
expectanciesCash flow averageVisits to prospects/
seminars/other marketing/cultivation
Tips from Kim WarnerWills posterSimple brochurePublicize planned
giftsInclude reports on
endowment in mailings
Minute for mission
One or two seminars a year
Bulletin inserts on wills and bequests
Mailing reporting on results of planned gifts and their impact
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Presbyterian Endowment Education and Resource Network: www.peernetwork.org
Planning Estate GiftsOutright bequestsBequests reserving life income to family
member (trust, gift annuity, pooled fund)Contingent bequests/disclaimersWill “substitutes” – life insurance, living
trusts, IRAs, beneficiary designations on financial and brokerage accounts
All are deductible for estate tax purposes
Leave Church “Tax-Burdened Assets”
U.S. Savings BondsIRAs and deferred
compensationAccounts receivable Installment
payments on land sale contracts
Unpaid commissions
Taxes on Retirement Accounts
Federal Estate Tax and State Death Taxes (some states)
Federal Income Tax (IRD)State Income Tax
Bequeath ordinary income
and tangible personal
property to church
Ted DeGrazia, artist
Outright Bequest OptionsSpecific $$ amountSpecific assetsType of assetPercentage of net
value of estateResidue of estatePercentage of residue
Residuary bequests can be uncertain
Disclaimers Provide FlexibilityHeirs can have right
to “disclaim” (turn down) all or part of a bequest and gift will pass to named charity
Possible income tax and “death tax” savings
Contingent Charitable Bequests Church benefits if
original named beneficiary has already died
Possible tax savings to donor’s estate
“Ultimate Contingent Beneficiary”
“I outlived three husbands and everybody else in my family”
Gifts through Will/Estate Plan
Outright bequestsContingent bequests/disclaimersBequests reserving life income to family
member (trust, gift annuity, pooled fund)Will “substitutes” – life insurance, living
trusts, IRAs, beneficiary designations on financial and brokerage accounts (POD and TOD accounts)
“Deferred Bequests” Are Shared Between Charity and FamilyCharitable gift annuityCharitable remainder annuity trustCharitable remainder unitrustCharitable lead trustPooled income fundGift of home/farm with lifetime use retained
Charitable Remainder Trusts
Charities Donor, others
Gifts through Will/Estate Plan
Outright bequestsBequests reserving life income to family
member (trust, gift annuity, pooled fund)Contingent bequests/disclaimersWill “substitutes” – life insurance, living
trusts, IRAs, beneficiary designations on financial and brokerage accounts (POD and TOD accounts)
Life Insurance in Gift PlanningValuable asset for giving
No need to make or change a will
Church can receive just a portion of policy
Almost Any Financial Account Can Be “Payable on Death” to Church
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