Presentation on theme: "Georgia Baptist Foundation, Inc. CHRISTIAN ESTATE PLANNING Trusts and Wills Presented By Douglas G. Couch Vice President/Director of Development GEORGIA."— Presentation transcript:
Georgia Baptist Foundation, Inc. CHRISTIAN ESTATE PLANNING Trusts and Wills Presented By Douglas G. Couch Vice President/Director of Development GEORGIA BAPTIST FOUNDATION
Georgia Baptist Foundation, Inc. WHAT IS THE GEORGIA BAPTIST FOUNDATION The Trust Agency of the Georgia Baptist Convention Serving Georgia Baptists since 1941 Manage endowment funds for Baptist causes
Georgia Baptist Foundation, Inc. BAPTIST CAUSES WE SERVE Cooperative Program Georgia Baptist Children’s Homes and Family Ministries, Inc. Georgia Baptist Health Care Ministry Foundation Baptist Village, Inc. Baptist Retirement Communities of Georgia State Missions North American Missions International Missions Baptist Student Centers Retired Ministers Support Fund The Christian Index All Southern Baptist Causes Baptist Churches Baptist Associations Life Income Trusts WMU Georgia Baptist Colleges and Universities General Scholarship Fund Baptist Conference Centers
Georgia Baptist Foundation, Inc. MANAGEMENT SERVICES CEMETERY FUNDS BUILDING FUNDS MISSION FUNDS SCHOLARSHIP FUNDS RESERVE FUNDS CAPITAL IMPROVEMENT FUNDS MEMORIAL FUNDS OTHER FUNDS
Georgia Baptist Foundation, Inc. GEORGIA BAPTIST FOUNDATION, INC 9.40% Avg. return* If the Georgia Baptist Foundation, Inc., had managed your church or association designated account, you could have enjoyed this return. This percentage is the average total return on the Foundation’s main endowment pool from Jan. 1, 1993 through 12/31/2009. Your Foundation, as the Trust Agency of the Georgia Baptist Convention, has been serving local churches and associations since We are larger than most local banks, and manage approximately 1300 accounts for Georgia Baptists. We are a Cooperative Program supported ministry. *Past performance is no guarantee of future results. *Past performance is no guarantee of future results.
Georgia Baptist Foundation, Inc. CHURCH PRESENTATIONS Building A Legacy Creative Ways to Give Church CEMETERIES : Practical helps Church Planned Giving Living Wills Identity Theft
Georgia Baptist Foundation, Inc. CHRISTIAN ESTATE PLANNING IS A Concern For Yourself Concern For Your Family Concern For The Lord’s Work
Georgia Baptist Foundation, Inc. The Most Important Estate Plan That You Can Make is KNOWING CHRIST AS SAVIOUR
Georgia Baptist Foundation, Inc. Christian Stewardship 1. GOD is the OWNER; I am HIS Steward. 2. GOD is Responsible for My Success. 3. GOD Holds Me Responsible for What I Do with HIS Property.
Georgia Baptist Foundation, Inc. God’s Ownership “For every beast of the forest is mine, and the cattle upon a thousand hills.” Psalm 50:10
Georgia Baptist Foundation, Inc. AS WE PLAN OUR ESTATE WE FACE SEVERAL CHALLENGES Not enough income Inflation and its impact Recession Multiple Taxes Estate Tax Estate appreciation Dying too soon Living too long THESE ARE THINGS THE AVERAGE PERSON CONSIDERS
Georgia Baptist Foundation, Inc.INFLATION Our Silent Enemy Lettuce,$ 0.15$ 0.29 $ 0.99? Head of Ground$ 0.33$ 0.78$ 1.59? Beef, lb. Refrigerator $ $ $ ? New Car$ $ $ ? Assume that inflation averages 3.1% for the next 65 years- the same pace as over the past 65 years. In 2057, $1 will have the purchasing power of 14 cents today. Put another way, $7.27 will buy what $1 buys now. IMHO, for ministries it is Endowment or Extinction !!!! IMHO, for ministries it is Endowment or Extinction !!!!
Georgia Baptist Foundation, Inc. Assets in the Probate Estate Mortgages and notes receivables Cars, boats, jewelry, antiques, etc. Objects of art, other collectibles Royalties, mineral interests, etc. Life insurance payable to estate Life insurance owned on the life of another
Georgia Baptist Foundation, Inc. Assets in the Probate Estate Real Estate Individually owned Tenant in common interest Stocks, bonds, and other securities Cash, savings accounts, CDs, etc. Business interests Sole proprietorships Partnerships Closely held corporations
Georgia Baptist Foundation, Inc. “Anyone may so arrange his affairs that his taxes shall be so low as possible; he is not bound to choose the pattern which will best pay the treasury; there is not even a patriotic duty to increase one’s taxes.” -Judge Learned Hand, Circuit Judge U.S. Court of Appeals
Georgia Baptist Foundation, Inc. Conservation of Assets INCOME ESTATE IRS Legal Fees Estate Tax Gift Tax Probate
Georgia Baptist Foundation, Inc. Components of a Comprehensive Estate Plan A valid UP-TO-DATE Will Living Will and “Health Care” Surrogate Power of Attorney to handle your legal affairs Review of Beneficiary Designations Review of Joint Accounts Review of Joint Tenancies Guardianship of minors and special needs adults Trusts for minors and incapacitated adults Life Insurance Life Income arrangements Burial Instructions
Georgia Baptist Foundation, Inc. Estate Planning Goals Avoid excessive court costs, attorney’s fees, and unnecessary delays Distribution of the estate to the persons or charities selected Minimize payment of Federal and/or state death taxes
Georgia Baptist Foundation, Inc. ‘And I will say to my soul, “Soul, you have many goods laid up for many years to come; take your ease, eat, drink and be merry.”’ “But God said to him, ‘You fool! This very night your soul is required of you; and now who will own what you have prepared?’ “So is the man who lays up treasure for himself, and is not rich toward God.” Luke 12:19-21
Georgia Baptist Foundation, Inc. ADVANTAGES OF HAVING A CHRISTIAN WILL ¬Name your own personal representative. Provide for other than next of kin. ®Avoid unnecessary court procedure. ¯Avoid many administrative costs. °Appoint a guardian for minor children. ±Legally avoid taxes. ± Leave a LEGACY for God’s Kingdom
Georgia Baptist Foundation, Inc. BASIC PROBATE PROCEDURE IN GEORGIA
Georgia Baptist Foundation, Inc. a)Filing of Petition to Probate Willl in Solemn Form in the probate court of county where deceased individual resided at the time of death (court costs: +/- $100.00). b)If self-proving affidavit is not attached to Will, must locate one witness to Will and that witness must sign Interrogatories (court costs: +/- $35.00) c)Executor sworn in and Letters Testamentary issued (timing: approximately one to two weeks after filing of Petition in metro counties you will receive Letters of Testamentary). d)Publication of Notice to Debtors and Creditors (publication costs: +/- $32.00). Notice to be published in the local newspaper once a week for four weeks within 60 days of appointment of Executor. e)Administration of the estate by Executor (timing: approximately one to three years). f)Filing of Letters of Dismission with the probate court in order to be dismissed as Executor (court costs: +/-$47.00). I.Probate procedures in Georgia for a properly executed Will containing incorporation of powers of fiduciaries and self-proving affidavit: With A Will
Georgia Baptist Foundation, Inc. a)Filing of Application for Letters of Administration (court costs: +/- $150.00). Generally, Petition requests that an heir-at-law be appointed as administrator of the deceased individual’s estate. b)If all heirs do not consent to the appointment of if applicant requests specific fiduciary powers, citation must be published once a week for four weeks in the local paper (publication costs: +/- $32.00). c)If no objections are filed, Administrator is sworn in and Letters of Administration are issued. d)Publication of Notice to Debtors and Creditors (publication: +/- $32.00). Notice to be published in the local newspaper once a week for four weeks within 60 days of qualification of Administrator. e)If all of the heirs do not consent to the granting of specific fiduciary powers to Administrator, the following procedure must be utilized in the administration of the estate: II.Probate Procedure for Intestate Estates Without A Will
Georgia Baptist Foundation, Inc. i.Administrator must obtain a bond (approximate cost: +/- $250.00). ii.Administrator must file Inventory with the probate court within four months after qualification (court costs: +/- $20.00). iii.Administrator must file Annual Returns with the probate court within 60 days after anniversary date of qualification (court costs: +/- $35.00). iv.Administrator must file Petition for Leave to Sell Property at Private Sale (court costs: +/- $250.00). v.Administrator must file Final Return (court costs: +/- $34.00). f)Statutory distribution scheme to heirs-at-law of deceased individual (spouse, children, etc.). g)Administration of the estate by Administrator (timing: approximately one to three years). h)Filing of Letters of Dismission with the probate court in order to be dismissed as Executor (timing: approximately four weeks; court costs: +/- $47.00).
Georgia Baptist Foundation, Inc. II.As a further safeguard, I direct my wife to produce to the Probate Court a Performance Bond to guarantee that she exercises proper judgment in the handling, investing and spending of the children’s money. III.As a final safeguard, my children shall have the right to demand and receive a complete accounting from their mother of all of her financial actions with their money as soon as they reach legal age. IV.When my children reach age eighteen (18), they shall have full rights to withdraw and spend their shares of my estate. No one shall have any right to question my children’s actions on how they decide to spend their respective shares. SECOND ARTICLE Should my wife remarry, her second husband shall be entitled to an equal share with the children of everything my wife possesses.
Georgia Baptist Foundation, Inc. I.Should my children need some of this share for their support, the second husband shall not be bound to spend any part of his share on my children’s benefit. II.The second husband shall have sole right to decide who is to get his share, even to the exclusion of my children. THIRD ARTICLE Should my wife predecease me or die while any of my children are minors, I do not wish to exercise my right to nominate the guardian of my children. I.Rather than nominating a guardian of my preference, I direct my relatives and friends to get together and select a guardian by mutual agreement. II.In the event that they fail to agree on a guardian, I direct the Probate Court to make the selection. If the court wishes, it may appoint a stranger acceptable to it.
Georgia Baptist Foundation, Inc. FOURTH ARTICLE Under existing tax laws, there are certain legitimate avenues open to me to lower death taxes. Since I prefer to have my money used for governmental purposes rather than for the benefit of my wife and children, I direct that no effort be made to lower taxes. IN WITNESS WHEREOF, I have set my hand and seal to this, my Last Will and Testament, consisting of two (2) typewritten pages, all this________________ day of_____________, 20____. _______________________ JOHN DOE ______________________ _______________________ Witness Address ______________________ ______________________ Witness Address
Georgia Baptist Foundation, Inc. YOU CAN PLAN YOUR ESTATE SO YOU, YOUR FAMILY, AND CHRISTIAN CAUSES WILL BENEFIT AS YOU WANT OR YOU CAN LET THE GOVERNMENT DO IT FOR YOU THEIR WAY! THE BOTTOM LINE
Georgia Baptist Foundation, Inc. FOR MORE INFO: Douglas G. Couch Vice President Georgia Baptist Foundation, Inc Sugarloaf Pkwy. Duluth, GA