Bequest—a gift from your will or living trust.
Example—Because of their desire to help Bible college students with their education, Jim and Lisa Smith have structured their wills to include the WCBC General Scholarship Fund. Though their wills leave most of their estate to their children when they die, the Smiths have designated 10% of the assets in their wills to benefit the WCBC General Scholarship Fund to further the cause of Christ into the next generation.
Life Insurance—naming a charity as the beneficiary of your life insurance policy, or gifting life insurance to a charity during your lifetime.
Example—Because of her desire to support the mission of WCBC beyond her lifetime, Mary Taylor has purchased a $50,000 life insurance policy on which she is paying annual premiums. When Mary passes away, the entire amount of the life insurance benefit will go to WCBC.
Retirement Plan—naming a charity as a beneficiary of your IRA, 401(k) or 403(b). Similar examples as life insurance.
Charitable Remainder Trust—a trust that provides you an income for a specified time, after which the remaining assets go to the charity of your choice.
Example—The Lee family has enjoyed owning a vacation home for many years, but have determined that it is too costly to keep it up now that they are older. The Lees have decided to set up a charitable remainder trust in which they will donate their vacation home to the WCBC General Scholarship Fund. WCBC will sell the vacation home, and the Lees will receive annual income based on a percentage of the trust’s value for a period of 20 years. At the end of that time, WCBC will receive the trust principal.
Charitable Lead Trust—a trust that provides income to the charities you choose during your lifetime or for specified years. At the end of that time, the remaining assets pass to your heirs.
Example—John Williams puts $1,000,000 in a ten-year charitable lead trust to benefit WCBC. The trust agreement stipulates that WCBC is to receive $50,000 in income annually for the purposes spelled out in the trust agreement. At the end of the ten-year term, John’s heirs will receive the trust principal.
For more information regarding planned giving, please contact:
Mark D. Johnson, CFP®
Fountain Professional Group, Inc.
16921 E Palisades Blvd, Suite 105
Fountain Hills, AZ 85268
Mark D. Johnson is a CERTIFIED FINANCIAL PLANNER ™ professional with more than 30 years of experience. He has been a help to dozens of families and businesses interested in remembering West Coast Baptist College in their estate plans.