Estate Planning
Who to Ask
Debbie Carter
Daystar and KMS Financial Services are separate entities with no common ownership or control. In her role at Daystar, Debbie can put you in contact with an appropriately qualified Estate Planning attorney or qualified legal professional who can discuss any planning or gifting questions you may have.
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Estate & Gift Services
Daystar Television Network
Phone: 817-879-1997
[email protected]
What is 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:
- Disclosure of financial and personal information,
- Discussion and identification of objectives to be achieved,
- Presentation of the options available to meet defined objectives,
- Recommendations of how best to proceed understanding the costs and benefits, including taxes,
- 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
- Follow up with the partner’s other personal advisers to make sure that the plan is put into effect.
- Give advice or direction as to investment vehicles available.
A Way to Double Your Donation
Matching gifts are offered by companies around the world. Many companies want to support the causes that their employees care about, so they setup matching giving programs through which they match employee donations to eligible nonprofits. You might be able to double your giving to Daystar by checking with your employer to see if they offer matching donations.
Call Debbie Carter at 817-879-1997 to see if you are eligible.
Planning Options
Your options include:
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.
CHARITABLE GIFT ANNUITIES
A charitable gift annuity (CGA), available in most states, is a contractual arrangement between you and National Christian Community Foundation (NCF), our charitable gift annuity provider. You make an irrevocable gift of cash or securities (minimum $ 10,000) 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.
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.
Charitable Gift Annuity
A creative way to give and receive,’ the Charitable Gift Annuity is one of the oldest, simplest and most popular methods of making a deferred charitable gift. With a gift annuity, the principal of the gift remains invested for the life of the contract and after the death of the last surviving beneficiary, the remaining principal becomes a gift to Daystar Television. The annuity rate is determined by the birth dates of the income beneficiaries at the time the annuity is established, and the minimum age to establish a gift with immediate payments is 50. An income tax deduction is given in the year the gift is made and capital gains tax benefits may apply when funding the gift annuity with appreciated securities.
Deferred Charitable Gift Annuity
The facts regarding the deferred gift annuity are same as the above charitable gift annuity. The only difference is that the annuity payments are deferred to begin at a future date at least one year from the date the gift is established. The longer the payments are deferred, the higher the rate of return. This is an excellent way to supplement retirement income with the assurance of a guaranteed fixed rate of return The deferred gift annuity can be established as a single-life or two-life, and after the death of the last surviving beneficiary, the remaining principal will go directly to Daystar Television.
Charitable Trusts
A charitable trust is another creative gift that allows a donor to ‘give and receive’ and is also an excellent way to supplement retirement income or healthcare costs. Every trust is individually unique as it is established to meet the individual’s needs and charitable intent. Funding assets may include cash, appreciated securities, real estate or business interests Capital gain tax benefits may apply when funding a trust with appreciated assets.
Retained Life Estate
Retained Life Estate – The Gift That Keeps You in Your Home
A retained life estate is a plan that allows you to donate a future interest in your home or farm to Daystar Television Network while retaining the right to live in it for the rest of your life. As the creator of a life estate, you deed a future interest in your home or farm to Daystar Television Network, but retain the right to live in it for the rest of your life or a term of years. You may also use a vacation home to create this kind of gift. While you retain the right to live on your property, you continue to be responsible for all routine expenses: maintenance fees, insurance, property taxes, repairs, etc. If you later decide to vacate your property, you may rent all or part of the property in cooperation with Daystar. When your life estate ends, or you terminate your interest, Daystar can then use your property or the proceeds from the sale of your property for the purpose you designate.
Irrevocable Life Insurance Trusts (ILIT) Wealth Replacement Trusts
An irrevocable life insurance trust (ILIT; pronounced “eyelet” and also called a wealth replacement trust) is a trust that is funded, at least in part, by life insurance policies or proceeds. It is an effective estate planning tool that, if properly structured, may help avoid generation-skipping transfer, gift, and estate taxes, while providing a source of liquid funds to your estate for the payment of taxes, debts, and expenses. An ILIT can be either funded or unfunded.
Key strengths:
May help avoid generation-skipping transfer, gift, and estate taxes
Takes advantage of the annual gift tax exclusion
Replaces wealth to provide for your family
Provides cash to your beneficiaries so that your business can continue to operate after your death
May provide funds for the costs of settling your estate (if the estate is in a position to sell assets to the trust or repay a loan, with interest)
Provides for professional management of your assets
Avoids probate
Maintains your privacy
Trust assets may be protected from estate creditor’s claims
Will or Living Trust Bequests
Establishing a personal will or living trust offers peace of mind through the assurance that one has made known how personal assets should be distributed after death.
Bequests can be designated to Daystar Television in several different ways, such as:
- Stating a specific amount or specific asset
- Stating a percentage
- Designating the remainder or residual of estate holdings.
- Note: “Intestate” is the term for a person who dies without a formal, legal will. If this occurs, everything you possess is given away by strangers to other strangers. A well-planned wilt puts you in charge. It is your directive to everyone else about your personal wishes, such as:
- Distributing cash, investments, real estate, and personal property to family and other loved ones
- Providing property management for heirs who may not be prepared to manage their financial affairs.
- Reducing taxes and estate settlement costs
- Making “gifts of a lifetime” to charitable interests
More on 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 left to Daystar Television in your will Giving to Daystar Television Network help us to continue to spread the gospel around the world.
A bequest can take one of the following forms:
- You designate a specific dollar amount to be transferred to one or more charities such as Daystar Television
- You can designate property assets, such as real estate, artwork and other valuables to be used to fund a charitable gift.
- A percentage of your estate plan can be designated for charitable purposes to ensure that the relative values of your gifts remain equal.
- You can determine that what remains after all other gifts to loved ones have been fulfilled goes to charity.
If you’ve already decided to include Daystar Television in your will and you have contacted your legal and financial advisors; here are some sample statements that you can immediately include:
As residual:
I. ______________________________________________________, give, devise and bequeath ail the residue of my estate, including real and personal property, to
(Word of God Fellowship inc. / dba Daystar Television Network).
As a percentage:
I, __________________________________________________, give, devise and bequeath an amount equal to % of my estate to (Word of God Fellowship, Inc. / Daystar Television
Network)
As a specific amount:
I, _________________________________________ , give, devise and bequeath the following items to (Word of God Fellowship inc. / dba Daystar Television Network)
By Giving ____________________________________________________________________________________.
If you’re like many consumers you’re probably trying to cut back on spending. There is one expense, however, that’s worth making: giving to charities like Daystar Television. Not only do you help us reach souls around the world; including countries like Israel, but it will also do wonders for your tax bill. Making donations of money or non-cash items to qualified charities like Daystar before year’s-end and you can deduct a good portion of that amount from your 2012 tax bill. If you would like to make a special non-cash gift to Daystar please email [email protected]
Consult your legal and tax advisors before making any material decisions based on this information.