1. Presented by Marc Carmichael R&R Newkirk Company Stewardship Kaleidoscope

2. 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!

3. 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

4. What Does a Bequest Prospect Look Like?

5. 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

6. “Will you include our Church in your will?”

7. Where did donors first get the idea to make charitable gifts by will or trust? No. 1 answer: Publications received from the organization.

8. Wills Emphasis Mailings

9. Bequest Messages in Various Church Publications

10. Obtain a Basic Wills Brochure

12. 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

13. Your Bequest Can Perpetuate Your Annual Contributions If Your$ 500You Can$ 12,500 Annual$1,000Perpetuate$ 25,000 Gifts$1,500Them with a$ 37,500 Total:$2,000Bequest of$ 50,000 $5,000at Least:$125,000

14. Websites Planned giving web page should tell the world you are glad to receive bequests Provide your church’s correct legal name

15. Estate Planning Seminars 75% estate planning, 25% gift planning Lots of breaks Rotating roundtable discussions Individual Counseling Famous estates

16. Lexington House (859) 277-6135

17. Train Volunteers to Help You Ask for Bequests

18. 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

19. Registry of Bequest Expectancies Name of donor Address of donor Size of bequest (or estimate) Source of information about bequest

20. 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.

21. Goals for Your Program Value of gifts or expectancies Number of gifts or expectancies Cash flow average Visits to prospects/ seminars/other marketing/cultivation

22. 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 22 Presbyterian Endowment Education and Resource Network: www.peernetwork.org

23. Do all this, and...

24. 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

25. Relieve Charitable Bequests of “Death Taxes” and Other Costs

26. Death Is a Tax Shelter…for Capital Gains Taxes Only

28. Leave Church “Tax-Burdened Assets” U.S. Savings Bonds IRAs and deferred compensation Accounts receivable Installment payments on land sale contracts Unpaid commissions

30. Retirement Accounts: A $12 Trillion Gift Resource

31. Taxes on Retirement Accounts Federal Estate Tax and State Death Taxes (some states) Federal Income Tax (IRD) State Income Tax

32. Bequests Beat Bonfires Bequeath ordinary income and tangible personal property to church Ted DeGrazia, artist

33. Collectibles Make Good Bequests

34. Outright Bequest Options Specific $$ amount Specific assets Type of asset Percentage of net value of estate Residue of estate Percentage of residue

35. Who Was John Beresford Tipton? Residuary bequests can be uncertain

36. Disclaimers Provide Flexibility 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

37. Contingent Charitable Bequests Church benefits if original named beneficiary has already died Possible tax savings to donor’s estate

38. “Ultimate Contingent Beneficiary” “I outlived three husbands and everybody else in my family”

39. Gifts through Will/Estate Plan 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)

40. “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

41. Charitable Remainder Trusts CharitiesDonor, others

42. Gifts through Will/Estate Plan 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)

43. Life Insurance in Gift Planning Valuable asset for giving No need to make or change a will Church can receive just a portion of policy

45. Almost Any Financial Account Can Be “Payable on Death” to Church 45

46. Should a Church Write Wills? 46

47. For Copies of Slides, E-Mail: Marc@rrnewkirk.com