Estate Planning

What is Estate Planning?

Estate planning is the process by which your personal and financial objectives for your family or charities are accomplished following death. Often, there is a good deal of discussion to finally determine the plan which is best for those who will survive you. Thus, estate planning involves:

1. Disclosure of financial and personal information,
2. Discussion and identification of objectives to be achieved,
3. Presentation of the options available to meet defined objectives,
4. Recommendations of how best to proceed understanding the costs and benefits, including taxes,
5. Work with the partner’s attorney of choice to present and assure that the partner’s goals are specifically spelled out during the preparation of documents to effectuate the plan selected, and
6. Follow up with the partner’s other personal advisers to make sure that the plan is put into effect.
7. Give advice or direction as to investment vehicles available.

Your options include:

CASH GIFTS

Cash gifts are the simplest and most popular type of charitable gift Daystar receives. Cash contributions are tax deductible as allowed by law.

PLEDGE GIFTS

Rather than making an outright cash gift, you may wish to pledge your contribution over a period of time. Pledges can be made securely online at www.daystar.com and can be in the form of an automated clearing house deduction from your bank account or via online pledges to your debit or credit card.

BEQUESTS

A bequest is a planned way to sow seeds for the Kingdom by including Daystar in your will. With your attorney’s help, this can be a way to save on or avoid estate and gift taxes. Distributions can be made either as a specific dollar amount or as a percentage of the estate.

GIFTS OF PROPERTY

Daystar welcomes such donations as buildings, vehicles, aircraft, jewelry, vacation homes and boats.

GIFTS OF REAL ESTATE

A gift of real estate can provide considerable savings in capital gains taxes due upon the sale of appreciated property. At the same time, you receive a charitable deduction for the full market value of the property as determined by appraisal. Gifts of appreciated real estate are fully deductible up to a maximum of 30% of your adjusted gross income. The unused portion of your donation can usually be carried forward and deducted over a maximum of five subsequent years with the same 30% maximum each year, subject to certain limitations.

• You can contribute the property but retain the right to reside there for your lifetime or the combined lifetime of you and your spouse; the retention will affect the amount of the donation.
• You will receive a charitable deduction for the year in which the gift was made.

GIFTS OF APPRECIATED SECURITIES

A gift of appreciated publicly traded securities can bring you tax savings by offering two significant advantages.

• You avoid paying capital gains on the increased value of the security.
• You receive a charitable deduction for the full fair market value of the security when the gift is made, subject to the same limitations described under gifts of real estate. Usually the security must have been held for at least 18 months.

LIFE INSURANCE GIFTS

The contribution of an existing or new life insurance policy can provide a significant gift in a manner which can be especially attractive for younger donors. By designating Daystar as both the owner and beneficiary of a life insurance policy, your premiums may be tax deductible.

How does it work? Simply purchase a life insurance policy and name the charity as your beneficiary. For example, let’s say you have a $200,000 policy. You can leave $150,000 to your family and $50,000 to your favorite charity such as Daystar.

If you donate a term life policy to a charity, you can deduct the cost of the premiums from your taxes. If you donate a whole life policy, you can deduct the cash value of the policy as well as the cost of the premiums. In both cases the charity gets the policy proceeds.

OIL, GAS, MINERAL LEASE

Own an oil, gas or mineral lease, or surface rights? Why not donate it to Daystar and receive some healthy tax advantages, so we can convert your donation to help those less fortunate around the world?

CHARITABLE GIFT ANNUITIES

A charitable gift annuity (CGA), available in most states, is a contractual arrangement between you and Christian Community Foundation (CCF), our charitable gift annuity provider. You make an irrevocable gift of cash or securities (minimum $ 25,000) in exchange for fixed payments for life, with the remaining value benefiting the mission of Daystar at your death.

• Security-Your fixed payments will not change, regardless of whether interest rates rise or fall.
• High Rates of Return-Your annuity payments may be considerably more than you are presently receiving.
• Current tax deduction of gift portion.
• Tax-free income-Part of your annual payments may be a tax-free return of principal.
• Capital gains tax savings-Minimize taxation on appreciated assets and spread them over your lifetime.
• Flexibility-You choose immediate or deferred payments and frequency of payments…quarterly, semi-annually or annually.
• Provide for yourself and one other…your spouse, a special needs child, or a parent.

CHARITABLE TRUSTS

An easily established charitable trust can provide a current charitable deduction for you in addition to income for you and/or Daystar during your lifetime. The income stream could be a fixed dollar amount or a fixed percentage. Estate and gift taxes can be lowered or eliminated by the proper use of these trusts.

This gift can be very attractive because it has the potential to increase the income that you may be receiving from low-yielding savings accounts, stocks, bonds, or certificates of deposit. The income must be distributed to you, your spouse, or other designee; at the end of the term of the trust the assets would be distributed to Daystar.

INDIVIDUAL RETIREMENT ACCOUNTS

A key component of good stewardship is the careful designation of beneficiaries. This is very important if you maintain deferred retirement plans such as an IRA. If you leave retirement funds to an individual, he or she will incur taxes on the deferred income. If you name Daystar as your beneficiary, no one will pay taxes on the IRA. This includes your estate, your loved ones, and Daystar.

SELLING A BUSINESS

Selling a business can lead to significant income and Capital gains taxes. With your attorney’s help, you can often use a charitable trust offered through Daystar Television Network to minimize or eliminate these taxes.

WEALTH REPLACEMENT TRUST

You may be considering including Daystar with one or more of the excellent vehicles listed above, but you may be concerned about leaving assets to your children or grandchildren. With proper planning, you can do both.

A wealth replacement trust would provide your loved ones with life insurance dollars in an amount that you set in addition to the money that you sow for the Kingdom. These dollars would be estate and income tax-free. You can also control your loved one’s access to the trust if you do not choose to leave them an immediate lump sum.

ASSIGNMENT GIFTS

Assets in this category include items that can be ‘signed over’ to a beneficiary or a charitable organization, such as life insurance policies, Individual Retirement Accounts (IRAs), bank accounts, pension plans, and other items. Assignment gifts can be given during one’s lifetime or through a will bequest. Assignment gifts make easy outright gifts and, in some cases, they can also fund a planned gift or particular donors’ interest.

Contact Us

Daystar Television with the assistance of Debbie Carter, Daystar’s Gift and Estate Design professional, can provide non-discretionary administrative services to you the donor at no cost to you. If you would like to make a special non-cash gift to Daystar or have any other questions please contact: