Knowing All Your Bases Are Covered - Jesus Film Project · Knowing All Your Bases Are Covered...
Transcript of Knowing All Your Bases Are Covered - Jesus Film Project · Knowing All Your Bases Are Covered...
Knowing All Your Bases Are Covered
Presented by:
Michael Occhipinti, MBT
Gift Planning Advisor
Wycliffe Foundation
&
Scott Talbot, CFP®, CAP® Director of Planned Giving
The Great Commission Foundation
of Campus Crusade for Christ
All that we have comes from God.
Every good and perfect gift is from above…James 1:17
All that we have belongs to God.
The earth is the Lord’s, and all that is in it…Psalm 24:1
It is our responsibility and privilege to leverage God’s resources for
God’s purposes.
Estate Planning is a matter of our ultimate stewardship
If you do NOT plan:
Unnecessary costs
Undesired distributions
Red tape
Family conflicts
State-appointed guardian
Missed opportunities
Why Plan?
If you DO plan:
Greater efficiency
Wishes honored
Simplicity
Harmony
Personally-chosen guardian
Rewards of wise stewardship
A duty accomplished
Why Plan?
Estate & Gift Planning Process The Five P’s: 1. Priorities
2. People
3. Property
4. Plans
5. Planners
Priorities…What?...Why?
Identify and determine your:
Priorities
Passions
Values
Lifestyle goals
People: planning for your heirs…Who? Whom to include in your estate plan
Family
Charity
Others
Dependency: priority of provision and giving
(I Timothy 5:8)
Motivation for giving: Love or Guilt?
People are more important than dollars
How much is enough?
Taxes
Three possible heirs – whom do you
choose?
People – family, friends, etc.
Charities
The I.R.S. (Uncle Sam…the other “heir”)
The good news
Capital gains taxes and estate taxes are
optional
Income taxes can be reduced
Property… What has God entrusted to you?
Cash
Securities
Investments
Real Estate
Business Interests
Tangible Property
Etc.
Planning Tools Overview
Basic Tools – Will, RLT, POA
Representatives
Personal Representative
Trustee
Guardian
Trusts – Credit Shelter, QTIP, Children, CRT, CLT
Letter of Instructions
Coordination of Titling & Beneficiary Designations
Bequest Case Study: Revocable Living Trust
Alternative to a will
Avoids probate
Advantages
IRAs & Retirement Plans
Popular Retirement Vehicle
Grow Tax-Free
Trillions of $ in IRAs
Assets such as IRAs, 401, 403 plans, and other
qualified retirement plans face additional taxation at
the death of the owner
IRA (and other QRP) Taxes
Federal Estate 35%
State Death Tax 5-10%
Federal Income Tax 35%
State Income Tax 5-11%
Current Plan:
I.R.S. $ 48,000
Family $ 852,000
Charity $ 100,000
Mary has a $1 million dollar estate of which $100,000 is in
an IRA with her children as the named beneficiaries. Her
estate plan provides $100,000 in bequests to several
charities and the remainder of her estate for the benefit of
her children.
Bequest Case Study: Bad Asset, Good Asset
A tax-wise stewardship option would be for Mary to instead
name charity as the beneficiary of her IRA and leave the
other assets to her children. There would be no tax on the
IRA since the beneficiary is a tax-exempt charity. The
children will receive $48,000 more.
Tax-wise Plan Change
I.R.S. $ 0 - $ 48,000
Family $ 900,000 + $ 48,000
Charity $ 100,000 No Change
Bequest Case Study: Bad Asset, Good Asset
Retirement
Plan
Charitable
Trust
Death of owner
Income to heirs
5% for 20 years
Remainder to
ministry
Give It Twice IRA
Bequest Case Study: Charitable Lead Trust
Everything over ~$5M taxable at 35%
Uncertain future due to pending tax law changes
Estate Taxes are Optional
Strategies: Lifetime Gifts
ILIT
A/B Trust
Charitable Donations
CLT
or at death Charitable
Trust
Charitable
Organization
Income
During lifetime
Tax Deduction
At end of trust period
Copyright 1998-2012 Lifestyle Giving, Inc.
How a Charitable Lead Trust Works
Experienced significant life changes?
Conformity with latest estate tax laws?
Heirs’ ability to handle wealth?
Potential tax impact?
But my plans are in order…
But my plans are in order…
Reflect your Kingdom and personal goals?
Last time you reviewed your plans?
Counsel from a “stewardship perspective”?
Free Second Look?
We serve partners/donors, volunteers and professional
advisors
Provide private consultations and estate reviews that
are confidential and free of cost or obligation
Work with your trusted advisors
Understand most people have multiple charitable
interests
How Can We Help?
Why Include Us on Your Team?
No cost, no pressure, no hidden agenda
Help from friends you know and trust
Understand all of your options
You will know that all your bases are covered
Please feel free to contact Michael or Scott. We look
forward to the opportunity to be of service to you and
pledge our finest efforts and complete confidentiality.
Scott Talbot, CLU®, ChFC®, CFP®, CAP®
Director of Planned Giving Phone: (877) 281-2006 [email protected] www.gcfccc.org
Michael J. Occhipinti, MBT Gift Planning Advisor Phone: (800) 681-5103 [email protected] www.wycliffefoundation.org
May we be of service to you?
Michael J. Occhipinti, MBT Gift Planning Advisor
Phone: (800) 681-5103 [email protected] www.wycliffefoundation.org
Scott Talbot, CLU®, ChFC®, CFP®, CAP®
Director of Planned Giving
Phone: (877) 281-2006 [email protected] www.jesusfilm.org/donate/planned-giving