Lenexa, Kansas, United States - Global Church of the Nazarene Foundation - Model Generosity - Leave a Lasting Legacy Through Planned Giving for Saturday, 19 April 2014"A new command I give you: Love one another. As I have loved you, so you must love one another."~~John 13:34 (NIV)
Loving others is not only a command from the Lord, but a wonderful experience. Ministries around the world aim to love others by sharing God's message of new life with those we can't personally reach. You can be a part of their work by helping to support your favorite ministry's future.
For more information on how to support the future of your favorite ministry, please reply to this email or contact us by phone at (913) 577-2983.
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Kenneth R. Roney, J.D.
President
PERSONAL PLANNER
Family Limited Partnerships
Another benefit is protection of assets. The FLP interests can be given to children and other relatives. It is very difficult for any creditor to reach FLP assets. The protection also extends to limiting rights of in-laws if a child or grandchild is married and later divorced.
Parents typically are interested in transferring value but retaining control. With an FLP, they can retain the general partnership interest and control the management of the FLP assets.
There are several considerations with an FLP. First, there are legal and accounting costs to create the FLP. In addition to these costs, property must be transferred. There may be transfer costs or property tax consequences upon the funding of the FLP.
Because the FLP interests are frequently given to family members, there will need to be an appraisal by a person who holds himself or herself out to the public as an appraiser. In addition, the selected appraiser must have appropriate credentials.
Finally, the parents will need to consider succession. At the point they no longer wish to manage the FLP, a child or other person will typically assume the role of general partner.
How the FLP Works
Assume that Bill and Alice have been successful real estate investors. They hold a number of parcels of development land, commercial buildings and apartment buildings. Bill and Alice would like to maintain control of their investment assets, but would like to start transferring equity to children.
An excellent solution is to create the "Jones FLP." Bill and Alice will be 1% general partners and 99% limited partners. In some circumstances, children already have assets and may contribute them in exchange for appropriate percentages of the limited partnership interest. But in the case of Bill and Alice, they transfer all of the assets to the FLP.
Bill and Alice transferred 11 parcels of commercial real property to the partnership. These 11 parcels include development land, commercial buildings with leases and apartment buildings. After transfer of the real estate, they employed a qualified appraiser to value the limited partnership interests.
After the appraisal was completed, Bill and Alice then begin to transfer limited partnership interests to their children and to trusts for grandchildren. The appraiser reduced or discounted the gift values due to the lack of control and for lack of marketability. Because the limited partners only own a small interest in the partnership and cannot force distributions, they do not have a high level of control. The appraiser determined that there is an 18% discount for the lack of control.
Because a limited partnership interest in real estate also makes it very difficult to sell at full value, there is a discount for lack of marketability. The qualified real estate appraiser determined that another 17% discount on total value is appropriate for lack of marketability. The two discounts together add up to a total of 35%.
When Bill and Alice make gifts of limited partnership interests to children and to trusts for grandchildren, they make use of both their present interest annual exclusions and a portion of each person's gift exemption.
Over a period of years, Bill and Alice were able to transfer a substantial portion of the limited partnership interests to family. However, because they still own the general partnership interests, they control and manage the real property. After a majority of the limited partnership interests are transferred to children, the growth in value of the assets will largely benefit their children rather than Bill and Alice.
Through this method, they can reduce future estate taxes and also maintain control. In addition, because it is difficult for the children to transfer the assets or for spouses of the children to acquire control, there is a substantial level of asset protection.
Creditors of the children are very restricted in their ability to gain control of the assets. Generally, under most state law, a creditor can only attach rights to distributions from the partnership. This makes it very difficult for any creditors to acquire a significant right to partnership assets.
Benefits and Disadvantages of Jones FLP
There are several specific FLP benefits that Bill and Alice appreciate. First, they are general partners and they have control. Second, because of the discounts they are able to make much larger gift transfers with little or no gift tax. Third, the assets are quite well protected from any creditors or spouses of the children. Fourth, assets transferred to the trust will be outside the probate process. While federal estate taxes will apply, even those will be greatly reduced. Fifth, the centralized management of the real estate property can be transferred to a successor general partner when they are ready to retire. This will enable the assets to be preserved long-term for the benefit of the family.
There are some disadvantages of Jones FLP. First, there is the cost involved in creating the documents, transferring the assets and maintaining all of the business records. Second, if there is excessive control by Bill and Alice, then the IRS may claim that they in effect have too much control over the assets. In that case the IRS may assess an estate tax based on the full value of the assets in their estate, including the value of the FLP assets.
Third, if there are too many limits on sale of the FLP interests by children, the IRS may claim that there is no "present interest" annual exclusion. For transfers that exceed the lifetime gift exemption, the IRS may assess a gift tax. Finally, FLP valuations by the appraiser may be questioned by the IRS. That could lead to an audit and litigation with the IRS.
Jones FLP Do's
There are several actions that should be taken to make certain that the Jones FLP functions as intended.
1. Written Document – The written FLP document must state all of the rights and duties of the general partner and of the limited partners.
2. Business Licenses and Tax ID Numbers – The partnership must be treated like a business entity. There may be state business licenses and it will be necessary to obtain federal and state tax ID numbers for the partnership.
3. Title Transfer – To function properly, the partnership must receive title to Bill and Alice's real property. They will deed the property from themselves as individuals to the partnership. There may be transfer taxes as a result of those deeds. However, it is essential that the title be properly transferred to Jones FLP.
4. Retain Assets – Bill and Alice must retain sufficient assets for their lifestyle. If they transfer all of their assets into the Jones FLP, then the IRS will claim that this is not a business entity but is simply a personal entity. If it is managed as a personal entity, Bill and Alice's estates could face a very large estate tax on the full value of the assets.
5. Avoid Comingling Assets – Jones FLP needs to have a proper business purpose and be conducted like a business. If business assets and personal assets are comingled, then the IRS may claim that this was not treated like a business.
6. State Filing Taxes – There may be state franchise taxes or other taxes that apply to Jones FLP. The FLP should comply with all state requirements.
7. Federal and State Income Taxes – While partnerships pass through income and deductions, it will be necessary to obtain the assistance of a CPA who is knowledgeable about partnership taxes and tax returns.
8. Create FLP While Still Healthy – There have been "deathbed" FLPs created that the IRS contested. It is preferable to create Jones FLP while Bill and Alice are still healthy. It can then function for a number of years to demonstrate the business purpose of maintaining and operating their real estate enterprise.
FLP Don'ts
1. Transfer All Assets – If nearly all assets are transferred to the FLP, especially on the deathbed of the donor, then it appears that this is not a business investment but merely a substitute estate planning strategy. The IRS may contest the FLP discounts and could potentially win a claim for a very large tax deficiency.
2. Transfer Family Home or Vacation Home or Personal Assets – The FLP is a business enterprise and family homes and personal assets should be retained outside the FLP.
3. Unlimited Promise to Parents – If the children promise the parents that they can "take assets whenever needed" from the FLP, then the IRS may deny the discounts on the ground that the children and parents are not treating it like a business entity.
4. Do Not Omit Business Meetings – The appropriate business meetings, minutes and reports should be filed to indicate that the FLP is being operated as a business entity.
FLP-Lead Trusts
If Bill and Alice make currents gift to charity, a very effective way of maximizing the benefits of the FLP is the "double discount" combination of a family limited partnership and a lead trust.
The first discount is due to the transfer of assets into the FLP. Bill and Alice could transfer $4 million in real estate assets into a family limited partnership. While the underlying rent or income from the assets could continue (and it is best if the assets have no debt and therefore no debt payments), there is a substantial discount for lack of marketability and for minority interest. This discount could reduce the FLP value from $4 million to $2.5 million.
If the limited partnership interests in the family limited partnership are then transferred into a lead trust, there is a second deduction. The deduction is based on the present value of the income paid to charity. While Bill and Alice thought about a 6% payment on $4 million in assets or $240,000 per year to charity, this percentage of the discounted $2.6 million value is much higher. Therefore, the gift tax charitable deduction is much more substantial. With a lead trust that lasts for approximately eight years, they are able to obtain sufficient "double discounts" to transfer $4 million in assets. With the use of part of their gift exemption, there is no gift tax.
The benefit of the FLP-lead trust is that Bill and Alice are able to provide a very major inheritance for their family. They are significantly leveraging the use of their gift exemptions. This allows a reasonably short period of time for the payments to charity with a very large inheritance to family members at the end of that time.
Because the assets transferred to family members have a low cost basis to Bill and Alice, the children will receive FLP assets with a low cost basis. However, children could then use a tax-free sale and unitrust strategy to sell the appreciated assets with zero tax.
Bill and Alice are very pleased with this strategy and believe that this is going to be an excellent addition to their FLP plan.
FLP-Lead Trust-Unitrust
After attending a weekend conference where they were encouraged to think about the best ways to assist children in "becoming better persons," Bill and Alice think it would be good for the children to stretch out the inheritance. They also believe that income and capital gain taxes for the children will continue to increase. Ideally, they would like to add a method or plan that would stretch out the inheritance and enable the children to reduce their future income and capital gain taxes.
One strategy to do that is to add a 5% charitable remainder trust to the end of the FLP-LT plan. The plan then starts with the Jones FLP interests that are transferred into a lead trust for eight years. At the end of eight years, the $4 million in assets may have grown to a larger amount. Assuming that they have grown to $5 million in value, then the two children of Bill and Alice would each benefit from a distribution of $2.5 million in assets to a 5% unitrust.
The unitrust would last for the life of each child. Each 5% unitrust funded with $2.5 million could produce an additional $125,000 of income for the life of the child. Because the trust may earn more than 5%, there may be inflation protection of this amount for the life of the child.
There are two major tax benefits for the child. When the appreciated assets of $2.5 million with low basis are transferred to the unitrust, they can be diversified tax-free. In addition, earnings above the 5% payout compound tax-free for life in the trust. Both of these benefits will save tens of thousands of dollars of income tax for each child.
Bill and Alice are delighted with the unitrust addition to their plan. The FLP-LT will leverage their transfers. After eight years, the lead trust principal is transferred to the unitrusts for the children. This will produce a long-term inheritance that they think is very helpful in encouraging the child to be a productive citizen.
In addition, there will be large savings in capital gains tax and future income tax for the children. With the belief of Bill and Alice that capital gain and income taxes will only increase in the future, these savings are a welcome addition to the overall plan.
SAVVY LIVING
Air Travel Tips for Travelers with Special Needs
I would like to fly my elderly parents across the country next month for my daughter’s wedding but have some concerns about the flight. My mom has trouble walking long distances and my dad has COPD and needs an oxygen tank. What airport or airline services are available to help passengers with special needs?Flying can be physically exhausting for anyone, including seniors with health issues or physical limitations. Here are a few tips that can help.
Booking the Flight
When you go to book your parent’s flight, this is the time to make special requests that can help make the trip easier for them. You’ll need to make these requests over the phone.
You should inquire about seats in the front of the plane for easier access or bulkhead seats that provide extra leg room. Also, you should request a wheelchair or two with attendants to maneuver your parents through all airports they will be visiting.
If your parents don’t want a wheelchair, but need help maneuvering through the airport then ask about electric carts.
You also need to check with the airline regarding their policy for portable oxygen concentrators for your dad. Some airlines will require a medical form signed by his doctor.
Airport Assistance
If your parents are flying on their own, you should know that airlines allow fliers who are children, elderly or disabled to be escorted to and from the gate by a non-traveling companion. The escort must provide his or her full name, birth date and government-issued ID at the security checkpoint.
If no one is available to help your parents, find out how the airline can assist them. For example, as long as you notify the airline 48 hours before the flight, Delta Airlines offers check-in assistance to elderly passengers. Also, American Airlines provides special assistance to passengers with disabilities.
Another option is to consider hiring an independent company like Royal Airport Concierge Services (isroyalusa.com). RACS will meet your parents at the curb to help them check their bags and escort them through security. They typically charge $150 to $250 and serve dozens of airports across the U.S.
There are also a number of traveling companion services like FlyingCompanions.com and PreferredTravelHelpers.com that will do everything, including making the travel arrangements, accompanying your parents on the trip, and facilitating their needs along the way. Fees vary, depending on what’s needed and travel costs.
Going Through Security
All U.S. airports offer expedited screening to passengers 75 and older that allows them to move through security without removing their shoes or jacket, and many airports have lanes specifically for use by passengers with disabilities and medical conditions so they don’t have to wait in line. They should ask about these when they check in.
If your parents are packing medications in a carry-on bag, they should know that their pills and/or liquid medications do not have to be packed in their prescription containers to get through airport security, but they will need to separate them from their other belongings so they can be screened. Liquid medications in excess of 3.4 ounces will require separate screening.
For more information on other airport security screening policies and procedures visit tsa.gov/traveler-information or call TSA Cares at 855-787-2227.
Boarding and Deboarding
When it’s time to board, your parents can take advantage of the pre-boarding option for elderly passengers. This allows older passengers extra time to get on the plane and get settled. For getting off the plane, they can wait for the other passengers to file out so attendants can assist them with carry-ons and escort them from the plane.
Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Senior" book. The articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070.
YOUR PLAN
Part Gift and Part Sale
Kevin: Over the years, that lot increased in value. It now is worth much more than what we paid for it. We paid about $40,000 for the lakeside property and it is now worth almost $200,000.
Susan: The lot has gone up greatly in value, and with the children out of the house we were thinking of selling the property. We wanted to sell, but we also wanted to avoid paying so much in tax on the sale. We were thinking of making a gift of 25% of the property to our favorite charity.
Kevin: I happened to be talking to a CPA at a community luncheon. He mentioned that we could probably give about twice as much with almost the same cost if we gave 25% of the property (prior to the sale) rather than writing a check after the sale.
After talking to our tax advisor, we discovered that if we gave a 25% interest in the property to charity, we would receive two benefits. We would get an income tax deduction for the value of our gift plus save on capital gains tax on the 25% interest given away.
Susan: That is what we decided to do. By giving charity a 25% interest in the property prior to the sale we saved the capital gains tax on that part. The deduction on that part offset a large portion of the tax on the $150,000 we received when the property actually sold. We are very pleased with the "double benefit" from giving the property, and our favorite charity received $50,000, a very nice gift.
*Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your benefits may be different, you may want to click here to view a color example of your benefits.
WASHINGTON NEWS
Each year President Barack Obama and Vice-President Joe Biden release their tax returns. Both have done so for year 2013.
In 2013 President Barack and Michelle Obama had adjusted gross income of $481,098. This was lower by approximately 20% from the prior year due to reduced royalties from the sale of books written by the President. Most of their income came from his $394,796 salary as President.
The Obamas filed as a married couple with two added exemptions for daughters Malia and Natasha. Because the book income qualifies as self-employment earnings, the President was able to reduce taxes by funding a Simplified Employee Pension (SEP) with $20,681.
The Obamas itemized deductions were $147,769. The largest itemized deduction was for charitable gifts of $59,251. The major gifts by President and Mrs. Obama were to the Fisher House Foundation, the American Red Cross, One Fund Boston and CARE. Other gifts were made to 28 additional charities.
After taking their itemized deductions, the Obamas had taxable income of $333,329 and paid tax of $98,169. Their effective tax rate was 20.4% of their total income.
Vice-President Joe Biden and his spouse Jill Biden had an adjusted gross income of $409,009. This was primarily from his salary as Vice-President and her salary as a professor at Northern Virginia Community College. They paid tax of $96,378. This was an effective rate of 23.7%.
The Biden’s made charitable gifts of $20,523. The largest gifts were to the USO and the Annual Catholic Appeal of the Diocese of Wilmington, Delaware.
Both the President and Vice-President participated in a new experience for many upper-income taxpayers. Starting in 2013, the 3.8% Net Investment Income Tax (NIIT) under the Affordable Care Act (ACA) is applicable. Because both couples were over the $250,000 threshold for the tax, the Obamas paid NIIT of $2,310 and the Biden’s paid $933 of additional tax.
IRS Tax Filings Cost $170 Billion
By April 15 over 150 million American taxpayers had filed tax returns for 2013. The IRS viewed this as a very successful filing season. It published a statement explaining that belief.
“The IRS had delivered a strong, successful filing season for the nation’s taxpayers. As of April 11, 2014, the IRS had received almost 113 million tax returns, processing almost $235 billion in refunds. We anticipate that an additional 12 million estimated taxpayers requested an extension by the filing deadline giving them an extra 6 months to file.”
The American Action Forum reviewed the time and cost involved for Americans to comply with the IRS requirements. Due to a very complex Internal Revenue Code, the number of hours required were 7.7 billion. The average time per return was 12.2 hours.
Based on an assumed average rate for a civilian employee of $31.57 per hour, the American Action Forum estimates the annual cost of complying with IRS requirements to be $170.4 billion.
Part of the tax filing challenge is the great diversity of required forms. The personal IRS Form 1040 could include up to 198 other attached forms. Estate and Generation Skipping Transfer taxes require either an IRS Form 709 Gift Tax Return or IRS Form 706 Estate Tax Return. There can be 23 attached forms. Additional tax forms are IRS Form 990 for Charitable Organizations and IRS Form 1041 for Trusts and Estates. Subchapter S corporations, partnerships and corporations all have their own individual forms.
Editor’s Note: The complexity of the required paperwork for compliance with the IRS filing requirements is reflected in the increase in the estimated number of hours for preparation during the past four years. The total number of hours to comply with IRS requirements has increased from 6.2 billion hours in 2010 to 6.8 billion hours in 2011 and 7.7 billion hours in 2012 and 2013. The IRS Taxpayer Advocate Service is a watchdog agency within the government. It has noted that the single greatest problem with the tax code is the sheer complexity. It appears that this year there now are 7.7 billion reasons for major tax reform.
FINANCES
Stocks - Google Reports Quarterly Earnings
Google, Inc. (GOOGL), a company most famous for its search engine, reported its latest quarterly earnings on Wednesday, April 16. While revenue met expectations, earnings per share did not.The company reported revenue for the quarter of $15.42 billion. This represents an increase from the same quarter last year when Google reported revenue of $12.95 billion.
Google reported quarterly net income of $3.45 billion. Last year, the company reported net income of $3.35 billion. Earnings per share came in at $5.04 per share. This was $0.15 per share below what analysts had expected. In addition to this earnings per share miss, Google’s cost-per-click revenue dropped 9%.
Larry Page, CEO of Google, had this to say about the company’s quarterly results. “We completed another great quarter. Google’s revenue was $15.4 billion, up 19% year-on-year. We got lots of product improvements done, especially on mobile. I’m excited with [the] progress on our emerging businesses.”
Google recently purchased Titan Aerospace, a manufacturer of high-altitude solar powered drones. Titan will help Google with several of its current projects. One of these is Project Loon, which is sending large weather balloons into the atmosphere in order to bring internet connection to as yet un-connected parts of the world.
Facebook, Inc. has also been looking at ways to bring the internet to un-connected communities. Facebook tried to acquire Titan earlier this year for $60 million. However, it seems that Google may have outbid Facebook for the company. The use of unmanned aerial vehicles for commercial purposes has been a hot topic lately. Amazon was the first major company to bring this idea into the realm of public debate when it announced it was considering the use of drones to deliver packages. It is too early to tell whether drones in the commercial space will become commonplace. However, many of the major technology companies are testing the waters.
Google, Inc. (GOOGL) shares ended the week of 4/14 at $543.34, down 0.06% for the week.
Johnson & Johnson Reports Quarterly Earnings
Johnson & Johnson (JNJ), a health care and pharmaceutical company, reported its fiscal 2014 first quarter results on Tuesday, April 15. The company reported strong earnings and continues to impress investors.
Johnson & Johnson reported quarterly revenue of $18.12 billion. This represents an increase of 3.5% from the same quarter last year when the company reported revenue of $17.51 billion.
In addition, the company reported net income of $4.73 billion. This is an increase of 3.5% from last year when the company reported net income of $3.5 billion. Earnings per share came in at $1.64 per share.
“Johnson & Johnson delivered strong first-quarter results driven by successful new product launches and the continued growth of key products,” said Alex Gorsky, Chairman and CEO of Johnson & Johnson. “Our talented colleagues around the world continue to bring meaningful innovations to patients and customers, addressing significant unmet needs. We also advanced our near-term priorities and long-term growth drivers, positioning us well to deliver sustainable results.”
The company’s strong quarter was due mostly to strong pharmaceutical sales, which increased 10.8% year-over-year. The primary reason for this was the release of a new Hepatitis C drug in November of last year. The drug, Olysio, captured global sales of $354 million during the latest quarter.
Johnson & Johnson (JNJ) shares finished the week of 4/14 at $98.96, up 1.73% for the week.
Coca-Cola Reports Quarterly Earnings
The Coca-Cola Company (KO), an international beverage company, reported its latest quarterly earnings on Tuesday, April 15. Earnings for the latest quarter were below earnings for the same quarter last year.
The company reported revenue for the quarter of $10.58 billion. This represents a decrease from the same period last year when the company reported revenue of $11.04 billion.
Coca-Cola announced quarterly net income of $1.62 billion. This represents a decrease from the comparable quarter last year when the company had net income of $1.75 billion. Earnings per share came in at $0.36 per share for the quarter.
Muhtar Kent, Chairman and CEO of Coca-Cola, commented on the company’s quarterly results. “Our growth momentum is steadily improving in line with our expectations, as we delivered sequentially stronger volume growth of 2% in the quarter while gaining global volume and value share in nonalcoholic ready-to-drink beverages. In the near term we are committed to delivering on our performance goals and generating increased shareowner value through improved productivity efforts and targeted investments. All of us at The Coca-Cola Company remain confident in our ability to deliver strategies while further strengthening our foundation for profitable and sustainable long-term growth toward our 2020 Vision.”
The Coca-Cola Company recently launched its biggest marketing program to date entitled “The World’s Cup.” The stated purpose of the campaign is to celebrate soccer as a force for social good. As part of the campaign the company has put together a full-length digital film, a documentary short-film, the official music anthem for the 2014 FIFA World Cup and “The Happiness Flag” – the largest photo-mosaic ever created featuring fan faces and messages. In addition, the company sponsored the largest FIFA World Cup Trophy Tour ever. The World Cup Trophy is now in the U.S. for the last leg of its 90-country, 92,000 mile journey to Rio De Janeiro, Brazil.
The Coca-Cola Company (KO) shares ended the week of 4/14 at $40.72, up 5.19% for the week.
The Dow started the week of 4/14 at 16,028 and closed at 16,409 on 4/18. The S&P 500 started the week at 1,818 and closed at 1,865. The NASDAQ started the week at 4,038 and closed at 4,096.
Bonds - Treasuries Fall This Week
Treasuries fell and yields rose for the first time in four weeks as economic data showed that the U.S. economy may be improving. Also, an accord between the Ukraine and Russia encouraged investors and decreased demand for fixed-income assets.The Department of Labor released its weekly unemployment benefits report. The report stated that initial claims for jobless benefits were 304,000 for the week ending April 12. This is 2,000 more than the previous week; however, the increase was less than the 315,000 claims expected by economists. The number of initial claims for jobless benefits is near a six and a half year low reached in the jobs report for the week ending April 5 of 302,000 claims. Analysts believe this shows an underlying strength in the economy.
In addition to the economic figures released this week, the Ukraine and Russia came to an accord on Thursday, April 17. The accord requires both sides to refrain from violence, intimidation and provocative actions. It calls for disarming all illegally armed militias and returning buildings to the Ukrainian authorities that have been seized by pro-Russian separatists. The tension between Russia and the U.S. and Europe has continued to increase since Russia’s annexation of Crimea. Those with investments tied to the European economies have been increasingly worried about sanctions levied upon Russian officials. Europe relies heavily on Russia for its natural gas supplies. While U.S. officials are skeptical of the agreement, the accord signals to investors that perhaps disruption of natural gas supplies to Europe is not imminent.
The markets were also affected by Fed Chair Janet Yellen’s statement on April 16. In her statement she gave some much needed guidance on the timing of the increase in the Federal Funds rate. She commented, “The larger the shortfall of employment or inflation from their respective objectives, and the slower the projected progress toward those objectives, the longer the current target range for the federal funds rate is likely to be maintained.”
As a result, many investors left the safety of fixed income assets this week in search of higher returns. The 10-year Treasury note yield rose 10 basis points to 2.72% in early trading on Friday. “Geopolitical issues, while still here, have ebbed into the weekend, allowing the market to focus more on fundamentals,” said Christopher Sullivan, Chief Investment Officer at United Nations Federal Credit Union. “Investors are starting to feel more comfortable that the economic data is starting to take a turn for the positive and that has allowed rates to start to climb.”
The 10-year Treasury note yield finished the week of 4/14 at 2.72% while the 30-year Treasury note yield finished the week at 3.52%.
CDs and Mortgages - Interest Rates Decline
Freddie Mac released the results of its latest Primary Mortgage Market Survey (PMMS) on Thursday, April 17. The results showed average fixed mortgage rates falling to a six week low.The 30-year fixed rate mortgage averaged 4.27% this week. This represents a decrease from last week when it averaged 4.34%. One year ago at this time, the 30-year fixed rate mortgage averaged 3.41%.
This week, the 15-year fixed rate mortgage averaged 3.33%. Last week the 15-year fixed rate mortgage averaged 3.28%. Last year at this time, the 15-year fixed rate mortgage averaged 2.64%.
“Mortgage rates continued to ease this week as housing starts rose 2.8% in March, but not as much as expected,” said Frank Nothaft, Vice President and Chief Economist at Freddie Mac. “Also, permits fell 2.4% in March to a seasonally adjusted annual rate of 990,000, which followed a slight downward revision of 4,000 permits in February.”
The money market fund finished the week of 4/14 at 0.4%. The 1-year CD finished at 0.7%.
Are you a Nazarene Legacy Partner (NLP)? The answer is “YES” if you have designated any gift to a Nazarene ministry in your will, bequest, or estate plan. This could be a tithe on your estate, an insurance beneficiary designation to your local church, college, global mission, or any other Nazarene ministry you support.
Send us your name and contact information by reply email and indicate “I am a Nazarene Legacy Partner” and we will add your name to our NLP honor roll. To model generosity inspires others to do the same. Thank you for your interest in gift planning. To access any of this updated financial and gift planning information, please select our website.
Church of the Nazarene Foundation
17001 Prairie Star Parkway, Suite 200
Lenexa, KS 66220 United States
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