Knowing All Your Bases Are Covered

Presented by:

Michael Occhipinti, MBT

Gift Planning Advisor

Wycliffe Foundation

&

Scott Talbot, CFP®, CAP® Director of Planned Giving

The Great Commission Foundation

of Campus Crusade for Christ

All that we have comes from God.

Every good and perfect gift is from above…James 1:17

All that we have belongs to God.

The earth is the Lord’s, and all that is in it…Psalm 24:1

It is our responsibility and privilege to leverage God’s resources for

God’s purposes.

Estate Planning is a matter of our ultimate stewardship

If you do NOT plan:

Unnecessary costs

Undesired distributions

Red tape

Family conflicts

State-appointed guardian

Missed opportunities

Why Plan?

If you DO plan:

Greater efficiency

Wishes honored

Simplicity

Harmony

Personally-chosen guardian

Rewards of wise stewardship

A duty accomplished

Why Plan?

Estate & Gift Planning Process The Five P’s: 1. Priorities

2. People

3. Property

4. Plans

5. Planners

Priorities…What?...Why?

Identify and determine your:

Priorities

Passions

Values

Lifestyle goals

People: planning for your heirs…Who? Whom to include in your estate plan

Family

Charity

Others

Dependency: priority of provision and giving

(I Timothy 5:8)

Motivation for giving: Love or Guilt?

People are more important than dollars

How much is enough?

Taxes

Three possible heirs – whom do you

choose?

People – family, friends, etc.

Charities

The I.R.S. (Uncle Sam…the other “heir”)

The good news

Capital gains taxes and estate taxes are

optional

Income taxes can be reduced

Property… What has God entrusted to you?

Cash

Securities

Investments

Real Estate

Business Interests

Tangible Property

Etc.

Planning Tools Overview

Basic Tools – Will, RLT, POA

Representatives

Personal Representative

Trustee

Guardian

Trusts – Credit Shelter, QTIP, Children, CRT, CLT

Letter of Instructions

Coordination of Titling & Beneficiary Designations

Bequest Case Study: Revocable Living Trust

Alternative to a will

Avoids probate

Advantages

IRAs & Retirement Plans

Popular Retirement Vehicle

Grow Tax-Free

Trillions of $ in IRAs

Assets such as IRAs, 401, 403 plans, and other

qualified retirement plans face additional taxation at

the death of the owner

IRA (and other QRP) Taxes

Federal Estate 35%

State Death Tax 5-10%

Federal Income Tax 35%

State Income Tax 5-11%

Current Plan:

I.R.S. $ 48,000

Family $ 852,000

Charity $ 100,000

Mary has a $1 million dollar estate of which $100,000 is in

an IRA with her children as the named beneficiaries. Her

estate plan provides $100,000 in bequests to several

charities and the remainder of her estate for the benefit of

her children.

Bequest Case Study: Bad Asset, Good Asset

A tax-wise stewardship option would be for Mary to instead

name charity as the beneficiary of her IRA and leave the

other assets to her children. There would be no tax on the

IRA since the beneficiary is a tax-exempt charity. The

children will receive $48,000 more.

Tax-wise Plan Change

I.R.S. $ 0 - $ 48,000

Family $ 900,000 + $ 48,000

Charity $ 100,000 No Change

Bequest Case Study: Bad Asset, Good Asset

Retirement

Plan

Charitable

Trust

Death of owner

Income to heirs

5% for 20 years

Remainder to

ministry

Give It Twice IRA

Bequest Case Study: Charitable Lead Trust

Everything over ~$5M taxable at 35%

Uncertain future due to pending tax law changes

Estate Taxes are Optional

Strategies: Lifetime Gifts

ILIT

A/B Trust

Charitable Donations

CLT

or at death Charitable

Trust

Charitable

Organization

Income

During lifetime

Tax Deduction

At end of trust period

Copyright 1998-2012 Lifestyle Giving, Inc.

How a Charitable Lead Trust Works

Experienced significant life changes?

Conformity with latest estate tax laws?

Heirs’ ability to handle wealth?

Potential tax impact?

But my plans are in order…

But my plans are in order…

Reflect your Kingdom and personal goals?

Last time you reviewed your plans?

Counsel from a “stewardship perspective”?

Free Second Look?

We serve partners/donors, volunteers and professional

advisors

Provide private consultations and estate reviews that

are confidential and free of cost or obligation

Work with your trusted advisors

Understand most people have multiple charitable

interests

How Can We Help?

Why Include Us on Your Team?

No cost, no pressure, no hidden agenda

Help from friends you know and trust

Understand all of your options

You will know that all your bases are covered

Please feel free to contact Michael or Scott. We look

forward to the opportunity to be of service to you and

pledge our finest efforts and complete confidentiality.

Scott Talbot, CLU®, ChFC®, CFP®, CAP®

Director of Planned Giving Phone: (877) 281-2006 stalbot@gcfccc.org www.gcfccc.org

Michael J. Occhipinti, MBT Gift Planning Advisor Phone: (800) 681-5103 michael_occhipinti@wycliffe.org www.wycliffefoundation.org

May we be of service to you?

Michael J. Occhipinti, MBT Gift Planning Advisor

Phone: (800) 681-5103 michael_occhipinti@wycliffe.org www.wycliffefoundation.org

Scott Talbot, CLU®, ChFC®, CFP®, CAP®

Director of Planned Giving

Phone: (877) 281-2006 stalbot@gcfccc.org www.jesusfilm.org/donate/planned-giving