Assisting Individuals in Preparing for Future Needs
Creating a definite plan for managing your property and distributing it to your heirs is a major component of an individual’s Christian legacy. This plan is not only concerned with what happens after your death, but also addresses management of your assets during your lifetime. The Foundation assists Northwest Baptists in providing a Christian legacy through their estate plans, which often include assisting in the creation of the following documents:
- Living Trust
- Power of Attorney
- Advanced Directive
As you develop your estate plans, it may be comforting to know that the Northwest Baptist Foundation can also serve in the following capacities:
- Personal Representative
- Agent under Power of Attorney
- Agent under Advance Directive / Health Care Power of Attorney
Christians should consider two additional items when developing their estate plans. First, do you want to include a testimony in your will? Since this is a public document, it is the perfect opportunity to leave a final and lasting statement of faith for all to see. Second, how can you support your favorite Baptist cause or other charity through your estate plan? The Northwest Baptist Foundation can direct you in ways to provide for your family and, at the same time, support the ministry of your choice. By utilizing one or more of the options available we can assist you in treating the Lord’s work as an “Equal Heir” or to “Give-it-Twice” to your family and charity.
Estate Planning Ideas
Tithing Your Estate
Tithing is a basic Christian tenant of stewardship. Tithing your estate at the end of a lifetime devoted to Christian stewardship and service is an appropriate testimony for believers. Even the faithful lifetime tither may never have tithed on an appreciated asset such as real estate, securities, or retirement accounts.
The concept of Tithing Your Estate offers a simple formula for honoring God with our estate stewardship. Here is how it works: leave a percentage of your estate, typically ten percent, to the ministry of your choice. You may contact the Foundation for appropriate bequest language to ensure that your wishes are accomplished through your will or trust distribution.
The Lord as an Equal Heir
Perhaps one of the simplest ways to leave gifts to ministry is to consider the ministry an Equal Heir. If three heirs, then charity is considered the fourth heir and the estate is divided four ways.
Give it Twice
Giving to children and to charity sounds attractive, but is it possible to leave a significant legacy for ministry and at the same time leave an adequate inheritance for family? A "Give It Twice" arrangement allows people to do both. "Give It Twice" is a three-step process accomplished through a unique trust arrangement.
You designate certain assets, or a certain percentage of your probate estate, to a "Give It Twice" trust arrangement during your lifetime through a will, revocable living trust, or beneficiary designations of retirement accounts. Your estate remains fully available for your use during your lifetime and, if married, the life of your spouse.
Children or other beneficiaries receive the net earnings from a "Give It Twice" trust. They receive the earnings for a specified period of years or until they receive a specified sum, such as an amount equal to or greater than the original trust value.
Upon completion of the payment of the earnings to children or other beneficiaries, the designated charity(ies) then receives the trust, which converts to an endowment fund or an outright gift benefiting your chosen Baptist cause or other charities.
"Give It Twice" Benefits include
Double impact of estate.
Avoid possible disadvantages of "lump-sum" inheritance.
Offers advantage of spreading inheritance over period of years.
Even modest estate can leave significant legacy to ministry.
Assets can be available for use during lifetime.
If income, gift or estate tax benefits are important, a “Give it Twice” plan can be structured using either Charitable Remainder Trusts or Charitable Lead Trusts as appropriate.
Charitable Remainder Trust
A Charitable Remainder can be created at your death by naming the trust as the beneficiary of your will or living trust. This type of Charitable Remainder trust would provide income for your beneficiaries for a stated period of time and then would distribute the remaining assets to your named charitable beneficiary(ies).
One of the simplest ways to support your favorite Baptist cause or other charity through your estate plan is to name them as a beneficiary of your life insurance policy. Naming the charity as a beneficiary of even a small portion (i.e.2% or 5%) can have a significant impact on their ability to carry out their ministry.