Giving for the Future
Many people have had a part in advancing the global mission of Faith through their testamentary gifts. You can do the same by update your will to include Faith, either with a specific dollar amount, a percentage of your estate, or a specific asset to be given.
Below is an example of how such a bequest might read:
I give, devise, and bequeath to Faith Baptist Bible College and Theological Seminary, Ankeny, Iowa...
... the sum of $___
... ___% of my estate
... the following property:
... the rest, residue and remainder of my estate.
The property comprising this gift is to be used to further the charitable purposes of Faith Baptist Bible College and Theological Seminary.
Letting us know in advance of your estate plans can help us plan for the future, especially if you wish your gift to fund a specific project.
Trusts are useful documents to accomplish a variety of stewardship goals. Giving through trusts may provide tax savings, especially if the trust is an irrevocable charitable remainder trust.
A trust is a private document, whereas a will belongs to public domain. A will can be contested after you have passed away, but a trust cannot be contested. A trust also avoids the delays and expenses of probate.
A trust can be revocable or irrevocable. A trust can be established during your lifetime (inter vivos) or through a will (testamentary).
A trust is also a good mechanism for managing and transferring assets before or after your death. Faith can work with you and an attorney to establish a trust that benefits you, your family, and the ministry of Faith.
When you first obtained your life insurance policies, you obviously felt a need for them. Perhaps you do not need all that coverage today, yet you still have those policies. If you are thinking about a contribution to Faith, a gift of your life insurance could be a sensible, as well as generous, course of action.
If you make Faith the owner of the policy, you will normally receive an income tax deduction for the policy's fair market value or cost basis, if lower, on the date of the gift.
If you name Faith as beneficiary of the policy (and retain ownership), you will receive an estate tax deduction for the insurance proceeds.
You can also use life insurance to replace the value of a different gift. For example, you could donate stock to Faith because of the tax advantages and purchase life insurance to benefit your heirs in the amount they would have received had you left them the stock.
The most expensive way to pass on assets to family members is by making them the beneficiaries of a retirement account. Deferred income taxes, estate taxes, and gift taxes can consume up to 85% of retirement plan assets.
A more efficient way is to give other assets to loved ones and to make Faith the beneficiary of your 401k, 403b, IRA, or other tax-sheltered accounts. You can also make Faith a secondary beneficiary, so the assets are only passed on to Faith if your primary beneficiary (e.g., your spouse) is no longer living.
By making Faith the beneficiary, you retirement assets will avoid excessive taxes and probate.
Life Estate Agreements
This tool is ideal for donors who would like to see their real estate put to good use after they pass away but who need to use their home, vacation home, or farm during the remainder of their lifetime.
Life Estates transfer the ownership (or partial ownership) of real property to Faith, allowing the donor to reduce capital gains and estate taxes.
The donor retains the use of the property for the remainder of his or her life (and/or the life of another person, usually a spouse). After the donor passes away, the property is used to further the ministry of Faith.
Charitable Lead Trusts
Are you concerned about the possibility of the government taking a huge part of the assets you were planning to leave your heirs?
A charitable lead trust provides you a strategy to pass assets to your family with significant estate tax savings while making a gift to Faith. After we receive income from assets in the trust for a period of years, the principal goes to your family with estate or gift taxes usually reduced or even eliminated.
The lead trust is an exceptional way to transfer property to your children or other heirs at minimal tax cost.
It is an ideal instrument if you are willing to forgo investment income on an asset but do not want to have estate taxes reduce the principal passed to your heirs. With a lead trust, you carry out your philanthropic plans over the coming years and save on taxes.
Chorale European TourMay 19–June 5
Follow the Faith Chorale on their European tour and pray for their ministry.
Faith Reception at GARBC ConferenceThursday, June 30
Connect with alumni and hear updates from Faith
Big events planned for the 2016 Homecoming! make plans now to return and be a part.
Faith Classic Golf TournamentFriday, September 16
New date for the golf tournament. Play a round of golf on a premier course and help raise money for Faith scholarships.