Q&A: IRAs and Taxes
IRAs, 401(k)s, and 403(b)s are all excellent tools for preparing for or enjoying a financially worry-free retirement. However, there are some income tax issues with these arrangements that may affect you or your family in the future. If you want to make the most of your retirement savings, The Baptist Home Planned Giving program can help. We’ve prepared this article to help you learn more about how to reduce taxes, benefit you and your family, and support kingdom causes and The Baptist Home.
Question:What are the tax implications of Individual Retirement Accounts?
Answer: You are eligible to establish an IRA account even if you are participating in a company retirement plan. You may be able to deduct your contributions to the IRA. Earnings accumulated in the account will not be taxed until you withdraw them – usually at a later time when your tax rate is lower. It should be noted that Roth IRA’s withdrawals are not taxable during life or at death.
Question: What are the tax considerations of a Lump Sum Distribution versus Direct Deposit to an IRA?
Answer: If lump sum distribution from a qualified plan is an option for you, be aware of the tax withholding requirement. When requesting a lump sum distribution, 20% will be withheld for taxes. You will have 60 days from the date of distribution to make a tax-free rollover into an IRA account. The 20% withholding tax will be refunded, but this method allows the government to have interest-free use of your money. You may wish to consider a direct deposit of qualified plan to an IRA. You can avoid the 20% withholding tax by having distributions placed directly into a qualified IRA account. It is suggested that you establish a separate IRA for this purpose rather than combining your distribution with money you already have in an IRA.
Question: How are IRA distributions taxed?
Answer: Most often, IRA withdrawals are taxed as ordinary income. If you are less than 59½ years old, there will be a 10% penalty tax in addition to the regular tax. After you reach age 72, distributions are required based upon your life expectancy. If you are married, it can be based on the life expectancy of you and your spouse. Your IRA withdrawals will continue to be taxed as ordinary income. (ROTH IRAs do not require withdrawals until after the death of the owner.)
Question: What is IRD and why is it important?
Answer: The term Income in Respect of a Decedent refers to ordinary income items which are included in a deceased person’s estate, but have not been included on his/her final income tax return. IRD items usually pass to the estate unexpectedly, with the unforeseen tax liabilities seldom being included in the estate planning process. Common examples of IRDs are IRAs and qualified pension plan distributions, deferred gain on commercial annuities, and interest accrued on U.S. Savings Bonds (Series EE & HH). Many people do not realize that at the death of the owner of an IRA and/or the surviving spouse, funds remaining in the account become taxable income to the heirs of the account or estate.
Question: How can an estate owner avoid this IRD tax problem?
Answer: A donor may designate a qualified charity like The Baptist Home as beneficiary of an IRD asset at the donor’s death. Because of The Baptist Home’s tax-exempt status, the income tax on this asset will be avoided. IRD assets can also be left to a charitable remainder trust. It should be noted that to avoid the income tax the asset must pass to charity or charitable trust at the death of the donor. A lifetime transfer may result in the income being taxed to the donor at the time of the gift to charity.
Question: Is it possible to benefit children and heirs and still reduce IRD taxes?
Answer: Yes, there are solutions to the IRD tax problem that reduce taxes and provide benefits to heirs. In order for the tax on IRD to be avoided, the charitable gift must be properly structured. We recommend consulting a professional advisor to be certain your gift is handled properly.
This article has been written to assist you in achieving your long-term retirement goals and avoiding unnecessary tax liabilities through charitable giving. Naming The Baptist Home as the beneficiary of an IRA or other IRD asset can result in tax savings for your heirs, and the funding needed to sustain our mission for many years to come. It is also a simple way to make a charitable gift at your death.
If you have questions about the tax consequences of your IRA or other assets, The Baptist Home Planned Giving staff would like to assist.
The Baptist Home – No Place Like It
Some have said The Baptist Home is the best kept secret in Missouri. Although it is never our intention to hide this light under a bushel basket, I think the expression is just the way people convey their appreciation for this ministry. It is a great ministry and God gets the credit for everything this ministry is and does. I am very grateful to Him for His guidance, His wisdom and His provisions for The Baptist Home.
When I share The Baptist Home story with others, they are amazed how we do this without government support. I know of no other faith based nonprofit, secular nonprofit, or for-profit business that is able to do this for the general population without heavy subsidies from the government, primarily through Medicaid and secondarily through Medicare.
Oh sure, there are a few upper scale facilities providing care for those who can pay; and that’s okay. And a few more, that severely limit the amount of charity care to make their operations sustainable; and that’s good that some charity is given. A few top feeders discharge residents as soon as they deplete their funds. However, The Baptist Home provides over two million dollars a year for fifty percent of its residents in its long term care facilities on its three campuses without government support. And yet, no resident worries about discharge because of her or his inability to pay the cost of care. I don’t think there is anything like it in the nation.
Sounds boastful, doesn’t it? Well I can assure you God gets the credit. I’ve seen so many ways in which God moved and provided for this ministry. The Baptist Home’s beginnings were tough and difficult. Then, the Great Depression was upon us, and The Baptist Home was sold on the Iron County courthouse steps like so many businesses were in the 1930s. A local businessman of the Episcopal faith purchased the Home and gave it over to a reorganized Baptist board of trustees. Past wise leadership sacrificed and invested funds to ensure the continued operation and growth of The Baptist Home. Individual and church donors were and continue to be faithful.
And, here I sit 101 years after its founding grateful to God for His guidance, His wisdom and His provisions for The Baptist Home. Heavenly Father, we love You and thank You for meeting our daily needs. May we be good stewards of Your provisions and always mindful of Your will for our lives and for this ministry. May others come to know of Your love and grace demonstrated by Your Son who died for us and gave us eternal life.
Things My Kids Need to Know
Things My Kids Need To Know
A review of the essential information every parent needs to communicate to his/her adult children so the children can fulfill the biblical mandate to “Honor you father and mother.” Each participant will receive an “Important Information Workbook.” (TBH also offers a similar program for the adult children entitled “The Things I Need To Know About My Parents”)
Do You Need Good Estate Planning Information?
Do you have estate planning decision to make and need up-to-date information? We have a place for you to find what you need. It is the new estate planning and planned giving website for The Baptist Home and The Baptist Home Foundation. You will be amazed at the amount of content that is available on wills, trusts and other estate planning tools. The purpose of this article is to familiarize you with what is available on our website and how you can access the information. Our desire is to provide the most accurate and up-to-date information to the friends and supporters of The Baptist Home. It should be noted that on some pages you can increase the size of the text by clicking the Text Size button.
You begin by going to The Baptist Home website at www.thebaptisthome.org and then click Support. You move down that page to the bottom left green section and click the arrow beside Planned Giving. From here there are several directions you can go. You can click Gift Options and go to types of assets that can be used in a planned charitable gift. The What to Give tab includes Stocks and Bonds, Land or Real Estate and Retirement Plan assets as well as cash. There is an explanation of each type of asset and the tax rules. You can also review How to Give which includes numerous options including Bequests, Charitable Gift Annuities, Charitable Remainder Trusts, the Give It Twice Trust and much more. There is information on each of the giving options. There are donor stories on many different planning issues included on the website. There are also e-brochures that can be requested on almost every topic covered.
There is a great deal of information on Estate Planning. You can reach the information by clicking Create Your Plan. You can then click Learn About Wills which takes you to a wide variety of topics. There is information on Wills, Living Trusts, Joint Tenancy, Planning for Children and other relevant issues. There are videos available on most topics with case examples to help make the information more understandable.
Under the Plan Your Will tab, click on Plan Now and you will enter the on-line planner. This on-line planner can lead you through preparations before you visit your estate planning attorney. It will be necessary to set up a user ID and password and log in to use the on-line planner. The process of logging on will make the information you enter completely confidential. You can allow access to the planning information to your attorney. The more prepared you are for your attorney visit, the more likely it will expedite the process and possibly lower the costs of your planning.
Another important tool on the Planned Giving website, under the Gift Option or Create Your Plan, is the Planned Gifts Calculator. You can do your calculations for a Charitable Gift Annuity, Deferred Gift Annuity and a Charitable Remainder Unitrust.
You can also sign up for our Gift Legacy eNewsletter which is sent out weekly via e-mail. The newsletter has helpful planning information and important up-to-date information on tax law changes and other issues that might affect your planning. There is also an Advisor’s Gift Law e-newsletter available on a weekly basis. You can sign up for both eNewsletters on our website.
The Estate Planning office of The Baptist Home is available to answer questions and provide more information about estate planning and planned giving.
Prepare Before Communicating with the Confused
Communicating with someone who is confused can be frustrating. And yet, somehow caregivers need to listen and speak in a way that builds trust and lowers anxiety. Anxiety only heightens uncooperative, difficult behavior and impedes communication. The goal is to provide as much quality of life as possible for the confused person by lowering the distress that can accompany difficult moments.
Therefore, it is important to prepare for the relationship with a confused person. Naomi Feil in her book, The Validation Breakthrough, speaks of the value of ‘centering.’ Caregivers must be in the right frame of mind in order to handle the complicated thoughts, feelings and behaviors that may come to the surface. ‘Centering’ begins when the caregiver acknowledges his or her own feelings. It is important to find a way to express them so they are not imposed on the relationship.
The exercise of certain relaxation techniques by the caregiver is helpful. For example, the practice of deep, slow breathing calms the internal being. The imagery of slowly breathing in new fresh air and expelling old stale air (thoughts and feelings) can be therapeutic for the caregiver. Positive self-talk can sweep away worrisome and needless thoughts before and during an exchange. This intentional effort will prepare the caregiver for empathetic listening and unconditional acceptance.
Joy Goodwin, who introduced Validation Therapy to The Baptist Home in the 1980’s, gave this good advice. “Relax; the confused or disoriented do not have to live in our reality. It’s okay to allow them to have their own reality as long as they are not in physical danger or a danger to others.” Insisting that the confused person live in the caregiver’s reality does not work. Reality Therapy attempts to correct the confused with verbal and written cues. However, this is often found to increase agitation and is generally not beneficial for effective communication.
The caregiver may miss an opportunity of understanding the underlying thoughts and feelings by becoming too obsessed with making sure the facts are correct. The confused person is probably speaking in symbolic language and not interested in facts anyway. He or she may be subconsciously creating fantasy to express deeply felt needs. Correction interrupts this process and will more than likely be met with stubborn resistance and increased hostility, agitation and withdrawal.
Spouses and adult children of the confused may find this approach difficult since life lived in the family unit and workplace often involves correction. However, the caregiver’s feelings of anger, fear, embarrassment and guilt must be put aside. Accepting the confused person’s condition frees the caregiver to find effective ways to have a meaningful conversation. This builds greater understanding by allowing deeply felt needs to be expressed in a safe and nonjudgmental way.
This approach builds trust; however, it is also essential not to patronize, lie or play along with the mistaken reality. On one level the confused person may realize you are toying with them. This does not make for a good relationship or meaningful experience. Next time I will address some important ways to build trust without patronizing.
The Four Stages of Resolution
Naomi Feil in her book The Validation Breakthrough identified four stages of resolution. People who suffer from cognitive impairment may progress through these four stages: 1) Malorientation, 2) Time Confusion, 3) Repetitive Motion, and 4) Vegetation. Feil believes people will “enter a period in their lives in which they feel the need to resolve unfinished business in order to die in peace.”
With each stage physical decline is evident and the sufferer draws inward mentally and emotionally. It is important to remember people are fluid and are not necessarily fixed in one stage or another. Therefore sufferers can move back and forth between stages and may have characteristics of two stages simultaneously. However, one stage will typically dominate.
Mal-oriented old people are often well adjusted in many areas of daily living. However, their behaviors are triggered by specific fears about losses brought about by the aging process. Sufferers will demonstrate short-term or remote memory loss, hold to present reality by a rigid and inflexible lifestyle, accuse others when belongings cannot be found, hoard, and realize and be threatened by their own disorientation. Physically they will have tense and tight muscles, fear of losing control of body functions, a quick and purposeful gait, and have focused and good eye contact during conversation. Sometimes they will clutch things, such as a purse, sweater, cane or stuffed animal and hold personal objects close to their body. They can do their own personal care. They will respond best to recognized roles and persons in authority, but have a negative response to those less oriented. They do not want insight into their mental or emotional condition. They can read and write unless blind or illiterate. They carefully follow rules and conventions and are concerned that others follow “the rules.” They can have a sense of humor, but are often moody.
Time confused persons respond to both verbal and non-verbal cues; therefore, they move from one stage to another throughout the day. The dominant characteristic is disorientation to time, place and person. They do not keep track of the time of day, day of week, month, year or season. They may not know where they are and may not recognize familiar people and their names. They may not know who they are and lose a sense of self. Physically, muscles are loose and they are aware of incontinence. They are slow and have smooth movements, without purpose, and have a dance-like gait. Their voice is low, but rarely harsh. They sing and laugh easily; eyes are clear and unfocused. Although often downcast, their eye contact triggers recognition. They substitute memories and feelings from the past to give meaning to the present, often recalling past experiences that are unresolved. Sometimes they are unable to control emotions. They need assistance to complete the ‘Activities of Daily Living’ (feeding, dressing, bathing, etc.). They do respond to a nurturing tone and appropriate touching. They smile when greeted and may call present caregivers by names from the past. They use symbolism in speech. They do not trust caregivers who argue, correct or pretend to agree with them. They can read, but no longer write legibly or coherently. They make up their own rules, retain intuitive wisdom and may use objects as substitutes for people.
Sometimes the disoriented will engage in repetitive behavior such as wandering, tapping and repeating the same words, phrases or rhymes over and over again. They often shut out most stimuli from the outside world. They have their own sense of time. Physically, they may slump forward, are unaware of incontinence and are restless, pacing or rolling in a wheelchair. Their eyes are half-closed or unfocused. They use repetitive body movements to express emotions. They require total care for ‘Activities of Daily Living.’ They use few common words, do not complete sentences and do not listen or talk to others. They are not motivated to read or write. Early memories and universal symbols are the most meaningful. They may repeat early childhood movements and sounds.
People in vegetation have lost speech and the ability to think logically. Often, they give no indication that they recognize family, visitors, old friends or staff. They have no sense of time or place. Physically, their breathing is shallow or soft; they barely move on their own initiative and often lay in the fetal position. Their eyes are shut much of the time and their face is often expressionless. There is no effort to control incontinence. Emotions are difficult to evaluate. They require total care for ‘Activities of Daily Living.’
People working with the cognitively impaired are trained to recognize the characteristics of each stage and apply specific techniques to forestall or prevent further progression. In some cases, the stages can be reversed and the quality of life enhanced. I will share more about these techniques in my next article.
The Why of The Baptist Home
Many people understand ‘what’ we do; some may understand ‘how’ we do it. However, the ‘why’ makes all the difference. Today, many companies focus on the bottom line of making money. For The Baptist Home, money should not be an end to itself. On the other hand, money is a tool to help us accomplish our mission. We do need to operate with sound business practices in order to sustain this ministry until Jesus comes. And, we have a fiduciary responsibility to those who have invested in this ministry that we use each resource honorably and optimally to advance our mission.
One of the most difficult parts of my job is whether to make a decision based on good business practice or based on ministry. Many times they are compatible, but other times they are not. Some decisions cost money in the best interest of people and will not yield a financial gain. Thus, The Baptist Home focuses on ministry opportunities to improve the quality of life for those who are aged and prepare them for the Kingdom of Heaven.
Nevertheless, that is what we are called to do. To advance the Kingdom of God is a good investment. Some of my evangelical friends may not think of The Baptist Home as a contributor to the advancement of the Kingdom. For example, some believe that ministry to those who are in need of physical, financial, social, emotional and mental support should take a back seat to preaching and evangelizing. I rather think both ways are important and have the same purpose. Our ultimate goal is to lead people into a relationship with the living God through the saving grace provided by the Lord Jesus Christ. Is ministry not one and the same as preaching and evangelizing?
Our 2nd superintendent, Dr. D.J. Scott would have answered this way as he did in a newsletter article dated April 1945, “If this work is not preaching the Gospel, then I’m in the wrong work, and really we had better close the doors.” He went on to explain, “We are quite sure that at least 95% of those with whom we have conferred feel the sort of work being done here at the Baptist Home is one of the most effective ways of presenting Christianity to the world.” And, he acknowledged that the most effective method of telling the good news used by missionaries for many years was “by ministering to the physical needs of men and thereby finding the way to their hearts….”
Scott believed Jesus to be our greatest example in this effort. “Christ went about ministering to man’s physical needs. He fed the hungry, healed the sick, made the lame to walk, gave sight to the blind; in fact, He spent but very little of His time in actually preaching as we speak of preaching in order to convince the world that He was and is the Christ, the Son of God.” He illustrates that when John the Baptist inquired of whether Jesus was really the messiah, Jesus told his disciples to go back and tell John, “…the things you see and hear, the blind receive their sight, the lame walk, lepers are cleansed, deaf hear, dead are raised and the poor have the Gospel preached to them.” (Matthew 11: 3-5)
Scott concluded, “So after reconsidering the whole matter, we are more thoroughly convinced that the ministry of love that is being carried on here in the Home is an outstanding phase of Kingdom service, and a most effective way of presenting effective Christianity to the world.” As with Dr. Scott, “…we certainly believe in preaching the Gospel, but it takes living and serving to prove to the world that we are true to the messages we speak.”
IRA’s and Taxes: Tax Considerations of Assets with Deferred Income Tax
IRAs, 401(k)s, and 403(b)s are all excellent tools for preparing an enjoyable, financially worry-free retirement. However, without taking into consideration the effect of income taxes on your retirement plans, achieving the lifestyle you desire can be filled with unwelcome surprises.
Individual Retirement Accounts – IRAs
A tax deferred IRA is a valuable retirement planning tool. You are eligible to establish an IRA account, even if you are participating in a company retirement plan. Earnings accumulated in the account will not be taxed until you withdraw them – usually at a later time when your tax rate is lower. It should be noted that Roth IRAs do not have the income tax implications during life or at death.
Lump Sum Distribution vs. Direct Deposit to an IRA
If lump sum distribution from a qualified plan is an option for you, be aware of the tax withholding requirement. When requesting a lump sum distribution, 20% will be withheld for taxes. You will have 60 days from the date of distribution to make a tax-free rollover into an IRA account. The 20% withholding tax will be refunded, but this method allows the government to have interest-free use of your money. You may wish to consider the following:
Direct Deposit of Qualified Plan to IRA
To avoid the 20% withholding tax, you may have distributions placed directly into a qualified IRA account. It is suggested that you establish a separate IRA for this purpose rather than combining your distribution with money you already have in an IRA.
Taxation of IRA Distributions
Most often, IRA withdrawals are taxed as ordinary income. If you are less than 59½ years old, there will be a 10% penalty tax in addition to the regular tax. After you reach age 70½ , distributions are required based upon your life expectancy. If you are married, it can be based on the life expectancy of you and your spouse. Your IRA withdrawals will continue to be taxed as ordinary income.
The IRD Tax Problem
Many people do not realize that at the death of the owner of an IRA and/or the surviving spouse, funds remaining in the account become taxable income to the heirs of the estate.
Income In Respect of a Decedent (IRD) What does it mean?
The term Income in Respect of a Decedent refers to ordinary income items which are included in a deceased person’s estate, but have not been included on his/her final income tax return. IRD items usually pass to the estate unexpectedly, with the unforeseen tax liabilities seldom being included in the estate planning process. Common examples of IRDs are IRAs and qualified pension plan distributions, deferred gain on commercial annuities, and interest accrued on U.S. Savings Bonds (Series EE & HH).
A donor may designate The Baptist Home as beneficiary of an IRD asset at the donor’s death. Because of The Baptist Home’s tax-exempt status, the income tax on this asset will be avoided. IRD assets can also be left to a charitable remainder trust. It should be noted that to avoid the income tax the asset must pass to charity at the death of the donor. A lifetime transfer may result in the income being taxed to the donor at the time of the gift to charity.
There are solutions to the IRD tax problem that reduce taxes and provide benefits to heirs. In order for the tax on IRD to be avoided, the charitable gift must be properly structured. We recommend consulting a professional advisor to be certain your gift is handled properly.
This article has been written to assist you in achieving your long-term retirement goals and avoiding unnecessary tax liabilities through charitable giving. Naming The Baptist Home as the beneficiary of an IRA or other IRD asset can result in tax savings for your heirs, and the funding needed to sustain our mission for many years to come. It is also a simple way to make a charitable gift at your death.
If you have questions about the tax consequences of your IRA or other assets The Baptist Home Planned Giving would like to assist please contact The Baptist Home.
Communication with the Confused
Alzheimer’s disease is a catch all term today much like the older term “dementia.” Some prefer to call it the “old-timer’s disease.” However, Alzheimer’s is a very specific disorder that cannot be accurately diagnosed until an autopsy is performed. It is characterized by the presence of excessive neuritic plaques and neurofibrillary tangles in brain tissue. Although the course of the illness can be different for each individual, victims will demonstrate gradual, yet progressive cognitive dysfunction. Currently, there is no known cure or treatment that slows the progression of the disease. On average, sufferers have a life expectancy of about seven years from onset diagnosis.
Because there are many causes of mental confusion other than Alzheimer’s disease, it is recommended that any person with symptoms should be evaluated by a trained neurologist who specializes in cognitive impairments. Some causes are treatable and reversible, especially if caught early.
A reason for mental confusion of some older persons can be emotional. The older we become the more losses we have. We may lose significant persons, eyesight, hearing, the ability to walk, important roles, etc., etc. The impact of the accumulation of losses and grieving can add to the emotional stress of aging. In addition, people tend to repress, are distracted from or postpone dealing with life’s difficult issues until age catches up with them. Often times this accumulated stress can lead to cognitive impairment. A person may prefer a break from reality rather than emotionally working through deep and difficult personal issues.
Regardless of the cause of mental confusion, Naomi Feil has written a book to help people communicate with the cognitively impaired, The Validation Breakthrough: Simple Techniques for Communication with People with ‘Alzheimer-Type Dementia.’ Joy and Ed Goodwin first introduced The Feil method to The Baptist Home in the 1980s.
Joy Goodwin wrote, “Validation is a method for communicating with older adults who are exhibiting strange, bizarre and unusual behavior, without a reasonable explanation. Mal or disoriented old people can be labeled as having Alzheimer’s disease (AD) and related dementias. Through observation Feil began to notice that such people tended to use similar kinds of behaviors. Eventually, she identified four progressive stages with characteristics that distinguish different groups of mal and disoriented older adults. She also developed techniques for communicating with mal and disoriented adults. These techniques have been known to stop or slow down the progression of confusion and in some case reverse them to a prior stage. Validation Therapy is based on an attitude of respect. It stresses the importance of the caregiver to become the empathetic listener. The Validation trained person accepts the reality of the confused unconditionally. The therapy acknowledges that each person is unique, deserves individual attention and has a basic right to their reality. As trust develops, anxiety is lessoned, the need for physical and chemical restraints is reduced and a sense of self-worth is restored. Physical, social, mental, emotional and spiritual functioning is improved.”
Revocable Living Trust
A Flexible Planning Option
It is essential that you have an estate plan regardless of the size of your estate. It is also the only way to make sure the stewardship of your accumulation will continue, as you desire, after your death. Your estate plan can be carried out through a will or through a revocable living trust. Another reason to have an estate plan is to be sure that there is provision for the management of your assets if you are unable to manage them yourself. This can be accomplished with a durable power of attorney or a revocable living trust. The revocable living trust is the most flexible estate-planning tool in existence today. The living trust can provide estate continuity to benefit you and your heirs, and for organizations and ministries you want to assist.
Important Terms
There are several terms you will want to become familiar with as you learn more about revocable living trusts׃
Revocable means the estate owner can revoke, alter or amend the trust at any time. You stay in control because you can amend or revoke the trust should your situation change.
Grantor is an individual who establishes the trust.
Living Trust is a trust established by a grantor during his/her lifetime. This is the opposite of a testamentary trust, which becomes effective at death.
Trustee is the person or institution responsible for managing a trust. The trustee holds fiduciary title to assets, but is required to manage those assets in accordance with the terms of the agreement.
Successor Trustee is the person or institution that fulfills the trustee’s duties in the case of disability, death or resignation of the trustee.
Revocable-Self Declaration Living Trust is a trust established and managed by the grantor of the trust. The purpose of the trust is to distribute the grantor’s estate at his or her death while avoiding probate.
Advantages of the Revocable Living Trust
Using a revocable living trust in your estate plan allows you to avoid probate and the problems that are sometimes associated with it. Other key advantages include:
- Reduction of administrative costs;
- Speeds estate distribution;
- Avoids interruption of income to heirs at grantor’s (estate owner’s) death;
- Provides for the private distribution of estate;
- More difficult to challenge than a will;
- Capability to transfer management without court involvement if grantor becomes incompetent;
- The potential for greater diversity and security for investments if a corporate trustee is used.
The Living Trust Does Not:
- Reduce income or estate taxes. It can, however, establish and fund trusts that do save estate or income taxes at death;
- Eliminate the need for a will since disposition of assets not included in the trust must be provided for in what is usually called a pour-over will.
Establishment of the Revocable Living Trust
A trust agreement must be drafted by an attorney and signed by the principals involved. The trust is funded by transferring a title to the trust during life. Probate is avoided only to the extent that assets are transferred to the trust. Thus it is important to transfer title of all of your assets to the trust. Assets without a title can be transferred with a bill of sale or by assignment.
The Revocable Living Trust and Christian Stewardship
You can benefit The Baptist Home in your revocable living trust in several ways including:
- Leaving a percentage of the remainder of your trust to The Baptist Home;
- Leaving a specified amount to The Baptist Home;
- Establishing a trust which provides for family members during their lifetimes and then distributes to The Baptist Home;
- Leaving assets to The Baptist Home in exchange for a Gift Annuity for a loved one.
If you want more information about the Revocable Living Trust, please contact The Baptist Home.
Tips for Staying Independent as We Age
Tips for Staying Independent as We Age
This conference is based on the latest research on the practices of those who are maintaining an independent lifestyle well into their late older adulthood. Participants will gain an understanding that in making the right lifestyle decisions today will enable a person to maintain maximum control of her/his life as they age. The conference includes a discussion of ways congregations can help adult maintain their independence.
Avoiding Fraud and Scams as We Age
Avoiding Fraud and Scams as We Age
Older adults are the main targets of consumer fraud and scam artists in our country. Conference participants will learn the common types of fraud, steps to take to elude scams, who to contact it fraud is suspected and community resources working to prevent fraudulent business practices.
