Presented by Marc Carmichael R&R Newkirk Company Stewardship Kaleidoscope
Why Launch a Wills Program? <ul><li>Majority of planned gifts come from wills </li></ul><ul><li>Simple gifts to understand...
The Bequest Prospect <ul><li>Is generally a member or past member  of the congregation </li></ul><ul><li>Has sufficient we...
 
Four Ages of Estate Planning? <ul><li>30s-40s are making their first wills </li></ul><ul><li>50s-60s changing family situa...
“ 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 t...
 
 
Obtain a Basic Wills Brochure
 
Message to Members <ul><li>You need a will </li></ul><ul><li>Here’s how to get a will </li></ul><ul><li>Review your will r...
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 ...
Websites <ul><li>Planned giving web page should tell the world you are glad to receive bequests </li></ul><ul><li>Provide ...
Estate Planning Seminars <ul><li>75% estate planning, 25% gift planning </li></ul><ul><li>Lots of breaks </li></ul><ul><li...
Lexington   House (859) 277-6135
 
Bequest Administration <ul><li>List matured bequests in a Wills Journal </li></ul><ul><li>Request copy of decedent’s will ...
Registry of Bequest Expectancies <ul><li>Name of donor </li></ul><ul><li>Address of donor </li></ul><ul><li>Size of beques...
The “Iceberg Effect” in  Wills and Bequests Programs <ul><li>Many planned giving officers say only 25% of donors disclose ...
Goals for Your Program <ul><li>Value of gifts or  expectancies </li></ul><ul><li>Number of gifts or expectancies </li></ul...
Tips from Kim Warner <ul><li>Wills poster </li></ul><ul><li>Simple brochure </li></ul><ul><li>Publicize planned gifts </li...
 
Planning Estate Gifts <ul><li>Outright bequests </li></ul><ul><li>Bequests reserving life income to family member (trust, ...
 
 
 
Leave Church “Tax-Burdened Assets” <ul><li>U.S. Savings Bonds </li></ul><ul><li>IRAs and  deferred  compensation </li></ul...
 
 
Taxes on Retirement Accounts <ul><li>Federal Estate Tax and State Death Taxes (some states) </li></ul><ul><li>Federal Inco...
Bequeath ordinary income and tangible personal property to church Ted DeGrazia, artist
 
Outright Bequest Options <ul><li>Specific $$ amount </li></ul><ul><li>Specific assets </li></ul><ul><li>Type of asset </li...
Residuary bequests can be uncertain
Disclaimers Provide Flexibility <ul><li>Heirs can have right to “disclaim” (turn down) all or part of a bequest and gift w...
Contingent Charitable Bequests  <ul><li>Church benefits if original named beneficiary has already died </li></ul><ul><li>P...
“ Ultimate Contingent Beneficiary” <ul><li>“ I outlived three husbands and everybody else in my family” </li></ul>
Gifts through Will/Estate Plan <ul><li>Outright bequests </li></ul><ul><li>Contingent bequests/disclaimers </li></ul><ul><...
“ Deferred Bequests” Are Shared Between Charity and Family <ul><li>Charitable gift annuity </li></ul><ul><li>Charitable re...
Charitable Remainder Trusts Charities Donor, others
Gifts through Will/Estate Plan <ul><li>Outright bequests </li></ul><ul><li>Bequests reserving life income to family member...
Life Insurance in Gift Planning <ul><li>Valuable asset for giving </li></ul><ul><li>No need to make or change a will </li>...
 
Almost Any Financial Account Can Be “Payable on Death” to Church
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Successful Wills and Bequests Programs for Congregations

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Successful Wills and Bequests Programs for Congregations

  1. 1. Presented by Marc Carmichael R&R Newkirk Company Stewardship Kaleidoscope
  2. 2. Why Launch a Wills Program? <ul><li>Majority of planned gifts come from wills </li></ul><ul><li>Simple gifts to understand and promote </li></ul><ul><li>Any church can do it </li></ul><ul><li>Donors more likely to consider major gifts through their estate plans than during life </li></ul><ul><li>Starting point for a planned giving program </li></ul><ul><li>In the immortal words of Willie Sutton: That’s where the money is! </li></ul>
  3. 3. The Bequest Prospect <ul><li>Is generally a member or past member of the congregation </li></ul><ul><li>Has sufficient wealth to make a bequest </li></ul><ul><li>Is retired or nearing retirement age – but younger donors should be encouraged </li></ul>
  4. 5. Four Ages of Estate Planning? <ul><li>30s-40s are making their first wills </li></ul><ul><li>50s-60s changing family situations </li></ul><ul><li>65-75 age group seek income security, money management </li></ul><ul><li>75+ reviewing plans for final dispositions </li></ul>
  5. 6. “ Will you include our Church in your will?”
  6. 7. Where did donors first get the idea to make charitable gifts by will or trust? No. 1 answer: Publications received from the organization.
  7. 10. Obtain a Basic Wills Brochure
  8. 12. Message to Members <ul><li>You need a will </li></ul><ul><li>Here’s how to get a will </li></ul><ul><li>Review your will regularly </li></ul><ul><li>Here’s how to name our church in your will (include your correct legal name and sample bequest language) </li></ul><ul><li>Please tell us about your bequest </li></ul>
  9. 13. 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
  10. 14. Websites <ul><li>Planned giving web page should tell the world you are glad to receive bequests </li></ul><ul><li>Provide your church’s correct legal name </li></ul>
  11. 15. Estate Planning Seminars <ul><li>75% estate planning, 25% gift planning </li></ul><ul><li>Lots of breaks </li></ul><ul><li>Rotating roundtable discussions </li></ul><ul><li>Individual Counseling </li></ul><ul><li>Famous estates </li></ul>
  12. 16. Lexington House (859) 277-6135
  13. 18. Bequest Administration <ul><li>List matured bequests in a Wills Journal </li></ul><ul><li>Request copy of decedent’s will </li></ul><ul><li>Establish procedures for tracking status of probate proceedings and anticipated distribution of funds </li></ul><ul><li>Consider bequest tracking software </li></ul>
  14. 19. Registry of Bequest Expectancies <ul><li>Name of donor </li></ul><ul><li>Address of donor </li></ul><ul><li>Size of bequest (or estimate) </li></ul><ul><li>Source of information about bequest </li></ul>
  15. 20. The “Iceberg Effect” in Wills and Bequests Programs <ul><li>Many planned giving officers say only 25% of donors disclose bequest expectancies in advance. Anticipate that 75% of matured bequests will arrive unannounced. </li></ul>
  16. 21. Goals for Your Program <ul><li>Value of gifts or expectancies </li></ul><ul><li>Number of gifts or expectancies </li></ul><ul><li>Cash flow average </li></ul><ul><li>Visits to prospects/ seminars/other marketing/cultivation </li></ul>
  17. 22. Tips from Kim Warner <ul><li>Wills poster </li></ul><ul><li>Simple brochure </li></ul><ul><li>Publicize planned gifts </li></ul><ul><li>Include reports on endowment in mailings </li></ul><ul><li>Minute for mission </li></ul><ul><li>One or two seminars a year </li></ul><ul><li>Bulletin inserts on wills and bequests </li></ul><ul><li>Mailing reporting on results of planned gifts and their impact </li></ul>Presbyterian Endowment Education and Resource Network: www.peernetwork.org
  18. 24. Planning Estate Gifts <ul><li>Outright bequests </li></ul><ul><li>Bequests reserving life income to family member (trust, gift annuity, pooled fund) </li></ul><ul><li>Contingent bequests/disclaimers </li></ul><ul><li>Will “substitutes” – life insurance, living trusts, IRAs, beneficiary designations on financial and brokerage accounts </li></ul><ul><li>All are deductible for estate tax purposes </li></ul>
  19. 28. Leave Church “Tax-Burdened Assets” <ul><li>U.S. Savings Bonds </li></ul><ul><li>IRAs and deferred compensation </li></ul><ul><li>Accounts receivable </li></ul><ul><li>Installment payments on land sale contracts </li></ul><ul><li>Unpaid commissions </li></ul>I.R.D.
  20. 31. Taxes on Retirement Accounts <ul><li>Federal Estate Tax and State Death Taxes (some states) </li></ul><ul><li>Federal Income Tax (IRD) </li></ul><ul><li>State Income Tax </li></ul>
  21. 32. Bequeath ordinary income and tangible personal property to church Ted DeGrazia, artist
  22. 34. Outright Bequest Options <ul><li>Specific $$ amount </li></ul><ul><li>Specific assets </li></ul><ul><li>Type of asset </li></ul><ul><li>Percentage of net value of estate </li></ul><ul><li>Residue of estate </li></ul><ul><li>Percentage of residue </li></ul>
  23. 35. Residuary bequests can be uncertain
  24. 36. Disclaimers Provide Flexibility <ul><li>Heirs can have right to “disclaim” (turn down) all or part of a bequest and gift will pass to named charity </li></ul><ul><li>Possible income tax and “death tax” savings </li></ul>
  25. 37. Contingent Charitable Bequests <ul><li>Church benefits if original named beneficiary has already died </li></ul><ul><li>Possible tax savings to donor’s estate </li></ul>
  26. 38. “ Ultimate Contingent Beneficiary” <ul><li>“ I outlived three husbands and everybody else in my family” </li></ul>
  27. 39. Gifts through Will/Estate Plan <ul><li>Outright bequests </li></ul><ul><li>Contingent bequests/disclaimers </li></ul><ul><li>Bequests reserving life income to family member (trust, gift annuity, pooled fund) </li></ul><ul><li>Will “substitutes” – life insurance, living trusts, IRAs, beneficiary designations on financial and brokerage accounts (POD and TOD accounts) </li></ul>
  28. 40. “ Deferred Bequests” Are Shared Between Charity and Family <ul><li>Charitable gift annuity </li></ul><ul><li>Charitable remainder annuity trust </li></ul><ul><li>Charitable remainder unitrust </li></ul><ul><li>Charitable lead trust </li></ul><ul><li>Pooled income fund </li></ul><ul><li>Gift of home/farm with lifetime use retained </li></ul>
  29. 41. Charitable Remainder Trusts Charities Donor, others
  30. 42. Gifts through Will/Estate Plan <ul><li>Outright bequests </li></ul><ul><li>Bequests reserving life income to family member (trust, gift annuity, pooled fund) </li></ul><ul><li>Contingent bequests/disclaimers </li></ul><ul><li>Will “substitutes” – life insurance, living trusts, IRAs, beneficiary designations on financial and brokerage accounts (POD and TOD accounts ) </li></ul>
  31. 43. Life Insurance in Gift Planning <ul><li>Valuable asset for giving </li></ul><ul><li>No need to make or change a will </li></ul><ul><li>Church can receive just a portion of policy </li></ul>
  32. 45. Almost Any Financial Account Can Be “Payable on Death” to Church
  33. 46.
  34. 47. [email_address]

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