Planned Giving - A Few Things to Consider

by George L. Bass
Winter 2001

It is said only two things are certain in life: death and taxes. While I do not totally agree, the fact is taxes are certain. Estate taxes are often the most misunderstood. You have worked long and hard to reach your current level of success. You owe it to yourself and family to become aware of how estate taxes and laws impact you. Depending on the size of the estate as much as 55% can go for taxes. While estate taxes may not be totally avoided, you do have some control. You may allow the government to make the decision on how to spend your money with no consideration for your wishes, or — you can decide who will receive your hard–earned life savings. No planning means the government decides; planning means you decide — the choice is yours.

In considering Christian Healing Ministries in your planning you will be assured a legacy that will live on for many generations and will affect thousands in need of God's healing. God has given Christian Healing Ministries a great vision and your gift will go far to insure the work will continue.

There are many methods and vehicles available to help you gain control. Some provide present savings on capital gains, as well as future income taxes. Below are a few of the most common vehicles available.

1. Bequests. Perhaps the simplest and most common method of providing for community–based charities. This is especially attractive to people with estates of more than $675,000 because estate or death taxes can be eradicated or substantially reduced by specifying a dollar amount or percentage of your estate be designated, in a will, for charitable purposes. This can be done be added to your existing will by codicil.

2. Trusts. These flexible instruments can maximize the amount of money available for your charitable purposes while providing income to yourself or your family. By placing a specific amount of money in trust, you remove that amount from your estate and can provide for several beneficiaries. The suggested minimum for an initial gift to a trust is $100,000.

Charitable Remainder Trusts come in several varieties to accomplish specific goals. Basically, they pay the donor or a named beneficiary until that person dies, bypassing the estate; the remaining funds automatically become a donation to the charity. They can be established, with legal counsel, as an annuity or a uni–trust or a q–tip trust with a negotiated payout rate.

Charitable Lead Trusts reward the charity for a designated period of time. At the end of that time the principal reverts to the donor or a named beneficiary.

3. Fiduciary Agreements. These are special giving instruments offered with a guarantee of a life income to the donor in exchange for eventual receipt of the remainder.

4. Pooled Income Fund. This is a diversified investment fund, which pools together gifts from several donors and pays out income on a quarterly basis, much like a mutual fund. Initial gifts above $5000 ( cash or appreciated securities) are placed in the pool, which is managed by a trustee bank. The donor receives his or her prorated share of the income for life, plus a substantial income tax deduction in the year of the gift. At the donor or beneficiary's death, the principal is transferred to a charity as a permanent named fund.

5. Gift Annuities. A simple contract between a charity and the donor, the gift annuity requires no lawyers or legal documents to establish. In exchange for a donation of $25,000 or above, a· charity agrees to pay a fixed amount to any designated beneficiary for life. The rate is established by the National Council for Gift Annuities and favors older donors. Gifts of appreciated stock avoid capital gains taxes. Remaining funds become named funds at the charity when the annuitant dies. For the donor under age 60, a Deferred Charitable Gift Annuity may be advisable.

Estate laws can be very complicated. It is very important to receive proper advice and council concerning your individual estate from a licensed professional.

Christian Healing Ministries, Inc. a 501(c)3 corporation is a Christ–centered, interdenominational nonprofit organization. Our mission is to spread the message of Christian healing, including the role of healing prayer in medicine, to teach and train others to pray for Christian healing, and to provide and coordinate healing prayer.