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Stewardship Kaleidoscope Successful Wills and Bequests Programs for Congregations Presented by Marc Carmichael R&R Newkirk Company Why Launch a Wills Program? Majority of planned gifts come from wills Simple gifts to understand and promote Any church can do it

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Stewardship Kaleidoscope

Successful Wills and Bequests Programs for Congregations

Presented by

Marc Carmichael

R&R Newkirk Company


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Why Launch a Wills Program?

  • Majority of planned gifts come from wills

  • Simple gifts to understand and promote

  • Any church can do it

  • Donors more likely to consider major gifts through their estate plans than during life

  • Starting point for a planned giving program

  • In the immortal words of Willie Sutton: That’s where the money is!


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The Bequest Prospect

  • Is 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



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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


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It’s a Matter of ASKING…

“Will you include our Church in your will?”


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NCPG Survey of Donors 2000

Where did donors first get the idea to make charitable gifts by will or trust?

No. 1 answer: Publications received from the organization.





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Message to Members

  • You need a will

  • Here’s how to get a will

  • Review your will regularly

  • Here’s how to name our church in your will (include your correct legal name and sample bequest language)

  • Please tell us about your bequest


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Your Bequest Can Perpetuate Your Annual Contributions

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


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Websites

  • Planned giving web page should tell the world you are glad to receive bequests

  • Provide your church’s correct legal name


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Estate Planning Seminars

  • 75% estate planning, 25% gift planning

  • Lots of breaks

  • Rotating roundtable discussions

  • Individual Counseling

  • Famous estates


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LexingtonHouse (859) 277-6135



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Bequest Administration

  • List matured bequests in a Wills Journal

  • Request copy of decedent’s will

  • Establish procedures for tracking status of probate proceedings and anticipated distribution of funds

  • Consider bequest tracking software


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Registry of Bequest Expectancies

  • Name of donor

  • Address of donor

  • Size of bequest (or estimate)

  • Source of information about bequest


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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.


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Goals for Your Program

  • Value of gifts or expectancies

  • Number of gifts or expectancies

  • Cash flow average

  • Visits to prospects/ seminars/other marketing/cultivation


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Tips from Kim Warner

  • Wills poster

  • Simple brochure

  • Publicize planned gifts

  • Include 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

Presbyterian Endowment Education and Resource Network: www.peernetwork.org



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Planning Estate Gifts

  • Outright bequests

  • Bequests reserving life income to family member (trust, gift annuity, pooled fund)

  • Contingent bequests/disclaimers

  • Will “substitutes” – life insurance, living trusts, IRAs, beneficiary designations on financial and brokerage accounts

  • All are deductible for estate tax purposes




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Leave Church “Tax-Burdened Assets” Costs

  • U.S. Savings Bonds

  • IRAs and deferred compensation

  • Accounts receivable

  • Installment payments on land sale contracts

  • Unpaid commissions

I.R.D.


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Retirement Accounts: CostsA $12 Trillion Gift Resource


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Taxes on Retirement Accounts Costs

  • Federal Estate Tax and State Death Taxes (some states)

  • Federal Income Tax (IRD)

  • State Income Tax


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Bequests Beat Bonfires Costs

Bequeath ordinary income and tangible personal property to church

Ted DeGrazia, artist



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Outright Bequest Options Costs

  • Specific $$ amount

  • Specific assets

  • Type of asset

  • Percentage of net value of estate

  • Residue of estate

  • Percentage of residue


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Who Was John Beresford Tipton? Costs

Residuary bequests can be uncertain


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Disclaimers Provide Flexibility Costs

  • Heirs 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


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Contingent Charitable Bequests Costs

  • Church benefits if original named beneficiary has already died

  • Possible tax savings to donor’s estate


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“Ultimate Contingent Beneficiary” Costs

“I outlived three husbands and everybody else in my family”


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Gifts through Will/Estate Plan Costs

  • Outright bequests

  • Contingent bequests/disclaimers

  • Bequests 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)


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“Deferred Bequests” Are Shared Between Charity and Family

  • Charitable gift annuity

  • Charitable remainder annuity trust

  • Charitable remainder unitrust

  • Charitable lead trust

  • Pooled income fund

  • Gift of home/farm with lifetime use retained


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Charitable Remainder Trusts Family

Charities

Donor, others


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Gifts through Will/Estate Plan Family

  • Outright bequests

  • Bequests reserving life income to family member (trust, gift annuity, pooled fund)

  • Contingent bequests/disclaimers

  • Will “substitutes” – life insurance, living trusts, IRAs, beneficiary designations on financial and brokerage accounts (POD and TOD accounts)


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Life Insurance in Gift Planning Family

  • Valuable asset for giving

  • No need to make or change a will

  • Church can receive just a portion of policy




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For Copies of Slides, E-Mail: to Church

Marc@rrnewkirk.com