Planning Strategies

  This is a very brief demonstration of the strategies that we effectively teach the person that you select to handle the ministry of sustainability at your church.

  They will be schooled in taxes, finance, inheritance laws and trust planning that will add significantly to the coffers of your church while increasing retirement income and tax free inheritance for generations of families.

  Interestingly enough, these strategies can ONLY be implemented through your church, as the elements of the U.S.. Tax Code that make these designs work are NOT available to the individual taxpayer.

  These matters can ONLY be effected, if a person " partners ", so to speak with a church.

Your church can provide a very necessary and valuable service to congregants in return for their helping to sustain your church.

  Essentially, it is the best marriage of parallel goals.

Charitable Trust

• Iowa couple had a  20-unit apartment house that they wanted to sell, as they were in their mid 70's and the maintenance was becoming a physical issue for them. 
• The fair market value was $700,000 but they had only paid $150,000 and made $120,000 of capital improvements. thus, their cost basis was $270,000 and their capital gain would be $430,000. Such a gain would bear a tax of $86,000.
• They were lifelong members of a community church in Sioux City that had only recently installed Church Trust.
• The administrator of the program showed them how to create a trust that avoided all capital gains and gave them an immediate tax deduction of $376,000.
• They also received a lifetime, GUARANTEED income from the trust of $58,000 annually.
• They had additional assets and determined that they were not in dire need of the annual income, so the administrator created an annual gift of $25,000 each year to the church.
• The remaining $33,000 was used to fund a life insurance trust for $712,000 and when the last of the husband and wife passes on, $213,000 is earmarked for their church and the remaining $500,000 is paid to their daughter income and estate tax free.

SPLIT:

• New Jersey widower age 63 had three interests in life: His two daughters, his church and the stock market.
• He enjoyed dabbling in the stock market and working as a handyman around the church.
• He had done well in business and also received a significant sum through a lawsuit that had rendered him a widower at age 41.
• He had two married daughters in their late 20's and three grandchildren.
• While amttnding a church meeting he was engaged in conversation by the administrator of the Church Trust program who offered that she had some strategies that may be of significant benefit to his family while also helping the church.
• In discussing his assets, he indicated that he had $600,000 in the stock market that he would never touch, as that was being saved for his daughters.
• The administrator, well-versed in Church Trust strategies, offered that" Yes, that is admirable but the stock market is volatile and holds a severe element of risk. If I could show you a method to avoid all that risk and immediately increase the value of that asset 350%, so that your daughters inherited much more and tax-free, would you be interested? '
• She then showed him that a Single Premium Life Insurance Trust of $600,000 would supply a life insurance benefit on him of $3,474.000.
• This would be owned by a trust, so it is considered outside his taxable estate and will pass income and estate tax free to his daughters.
• He will actually increase the asset value 479%, as soon as the insurance is issued. He will not have to wait for his stock portfolio to grow and. more than likely, the portfolio would not have grown 479% in his lifetime anyway.
• So, all he had to decide was what portion he wanted to earmark for the church and what portion he wanted his daughters to receive.
• He decided that each of his daughter's would receive $1,200,000 and the remaining $1,074,000 would be paid to his church.

This is but a small sample of the 9-10 planning strategies that we teach to the person administrating Church Trust at your church.

Your administrator will be trained right from our studio and can be operationally helping your church in 30 days.

Please contact us, if you have an interest in installing the turnkey, no cost program of Church Trust.