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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Marc@rrnewkirk.com