Lenexa, Kansas, United States - Global Church of the Nazarene Foundation - Model Generosity: Leaving a Lasting Legacy Through Planned Giving for Saturday, 28 June 2014

Lenexa, Kansas, United States - Global Church of the Nazarene Foundation - Model Generosity: Leaving a Lasting Legacy Through Planned Giving for Saturday, 28 June 2014
Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver. And God is able to make all grace abound to you, so that in all things at all times, having all that you need, you will abound in every good work.”(2 Corinthians 9:7-8)
Our God has unlimited resources to provide for all our needs, whatever they may be. The scripture above also talks about God loving a cheerful giver, not giving out of obligation or resentment. May God continue to teach us all how to be cheerful givers, and may He bless you in many ways as you give through the Church of the Nazarene Foundation.
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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Blessings,
Kenneth R. Roney, J.D.

President

PERSONAL PLANNER

Do You Have a Difficult Family?

A businessman with a $2.5 billion estate passed away in 1976. He was single and many individuals, mostly unrelated to him, filed more than 40 wills with the probate court. Not surprisingly, the individuals who filed the 40 wills hoped to become beneficiaries of a large portion of the estate.
Twenty-two cousins fought with all of the other individuals claiming a share of the estate. In the end, the wills were all ruled invalid and the 22 cousins plus the federal government divided up the estate.
Your estate may not be $2.5 billion, but if you have a reasonable level of resources and a difficult family member, there could be a will contest. This may occur because one of your family members or potential heirs might believe that he or she can receive a larger portion of the estate. Some beneficiaries will receive a larger share if your will is valid and some will gain if the will is determined invalid. The difficult person is likely to sue if he or she can gain a larger part of your estate.
How Will a Difficult Person Attack Your Plan?
There are several ways to challenge your will. He or she will claim that you have a lack of capacity, that there were unqualified or improper witnesses, or that there has been undue influence that invalidates the will.
What is Capacity?
Capacity is a legal term that means you are qualified to sign a will. Fortunately, you don't lose capacity simply because you have a "senior moment" or a brief period of forgetfulness. Rather, your capacity is defined as (i) your ability to understand that your will transfers your estate, (ii) that you know the general type and nature of your property, and (iii) you can identify the family members who are your potential heirs.
What Questions May the Attorney Ask?
Your attorney will be very interested in making certain that the will is properly signed and qualified to transfer your property. He or she may ask general questions to enable you to show that you're qualified to sign the will. The questions may include, "Why are you here?" and "What do you own?" and "Who are the members of your family?"
You should briefly respond to each of the questions. The attorney and the witnesses will then be able to testify about your capacity if a difficult person claims that you were not capable of signing a proper will.
You should be able to affirm that you understand a will transfers your property and in a general way identify the major assets in your estate. You do not need to explain specifically all the property or the exact value, but a general explanation is necessary.
The people you describe as potential heirs will typically be your spouse, children, brothers, sisters, grandchildren, other relatives and special friends. If you are specifically including or excluding someone, you may wish to mention that fact.
In some cases, a doctor is asked to provide additional explanation. He or she may describe your general mental and physical condition and any medications you are currently taking.
The key day is the date you actually sign the will. Even if you just have a "lucid interval" on that day, you generally will be qualified to sign the will. The attorney and witnesses may later be called to testify and can describe your general conduct and statements to assist the court in determining whether you are qualified on that date to sign the will.
What is Undue Influence?
As we become more senior, we tend to have less physical and mental strength. In very senior years, we may have a level of weakness that permits another person to impose their will upon us. The action of a child or caregiver in causing us to sign a will that reflects his or her intent rather than our intent is called "undue influence."
Your child or caregiver may encourage you to sign a new will that would disinherit other children or other beneficiaries and give the estate to him or her. In some cases, the child or caregiver has paid the attorney for a new will that makes him or her the sole beneficiary.
What are the Flags to Watch For?
There are three specific flags or conditions that you should understand. First, if you have physical and mental weakness, you may be more vulnerable. Second, be cautious if the influencer approaches you and offers to obtain the document or pay the attorney. Third, it is a red flag if the influencer is going to receive a larger than normal benefit under the new will.
Is it Acceptable to Sign Your Will if You are in the Hospital?
Because many individuals discover a need to update their will after they become ill, it is very common to sign a will or trust in the hospital. However, there are some cautions or steps that you should take.
First, when you sign the will or trust, the attorney, witnesses and medical staff may be in the room, but the beneficiaries should not be in your presence. The advisors and medical staff in the room are there for your protection and welfare and are objective because they are not receiving a bequest or inheritance.
Second, it is important for you to explain to the attorney, the witnesses and any medical staff present that you understand the will, you have thought through the reasons for rewriting the will and you disclose the name of any person who suggests that you rewrite the will.
While these steps cannot guarantee that a difficult person will not file a claim, you have now taken significant steps to decrease the risk of a will contest.
Does a No-contest Clause Work?
In many states, it is permitted for you to write a no-contest clause into your will. For example, if you have four children who each receive one-fourth of the estate, you might write a provision into the will that says if one of them contests the will, he or she will lose that one-fourth share.
No-contest clauses have often been upheld. One strategy that some individuals use is to provide a reasonable bequest in the will for a difficult heir. If the child or other heir contests the will and loses, he or she will be giving up some meaningful benefit. This may discourage a child or other heir from contesting the will.
Summary
Your will is designed to carry out your intent. If you sign a new will in your very senior years when you are not in the strongest mental and physical health, it can still be valid and upheld. However, taking a few common sense steps to increase the likelihood that there will not be a contest by a difficult family member is quite easy and good judgment on your part.
SAVVY LIVING

When to See a Geriatrician

My 80-year-old mother takes several different medications for various health problems, but she hasn’t been feeling like herself lately. I’m wondering if she would benefit by seeing a geriatrician instead of her regular family doctor. What kinds of health problems do geriatricians treat?
If your mom is dealing with a variety of health problems and is taking multiple medications then visiting a geriatrician may be a good idea. Here is a list of health conditions geriatricians treat and tips to help you locate a geriatrician in your area.
Geriatric Doctors
First, what is a geriatrician? A geriatrician is a family practice or internal medicine physician with specialized training in the health concerns of older adults. Just as a pediatrician specializes in caring for children, a geriatrician is trained to provide care for seniors.
While most doctors are trained to focus on the physical symptoms of a particular illness or disease, geriatricians are trained to look at all aspects that may affect elderly patients. They often work with a team of health care professionals to provide care such as geriatric-trained nurses, rehabilitation therapists, nutritionists, social workers and psychiatrists. They will coordinate treatment among a patient’s specialists.
Elderly seniors with multiple health and age-related problems can benefit from seeing a geriatrician. Geriatricians specialize in problems such as cardiovascular disease, stroke, confusion and memory problems, Parkinson’s and Alzheimer’s disease, diabetes, hypertension, depression, respiratory problems, osteoporosis, arthritis, chronic pain, mobility issues, incontinence, vision and hearing impairment and trouble with balance and falls.
Geriatricians are also particularly adept at tackling medication problems. Unique side effects and drug interactions are common among seniors since many take multiple medications and older bodies absorb and metabolize drugs differently than younger ones. A geriatrician can evaluate and monitor your mom’s medications so that they do not affect her in a harmful way.
Geriatricians also help patients and families plan for long-term care. They can help evaluate how long an elderly patient can safely live without assistance and the services that may be necessary when the patient needs extra help.
However, not all seniors need to see a geriatrician. Seniors with only a few health problems are fine to visit their primary care physician.
Find a Geriatrician
Unfortunately, there’s a shortage of geriatricians in the U.S. So, finding one may be challenging. To locate one in your area, visit the American Board of Family Medicine website at theabfm.org and run an online search. You can also use Medicare’s online Physician Compare tool. Just go to medicare.gov/physiciancompare, type in your zip code or city and state and then type “Geriatric Medicine” into the “What are you searching for?” text box. You can also get this information by calling Medicare at 800-633-4227.
Keep in mind that locating a geriatrician doesn’t guarantee your mom will be accepted as a patient. Many doctors already have a full patient roster and don’t accept any new patients. You’ll need to call the individual doctor’s office to find out.
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

Capital Gains Tax Bypassed

Peter and Gail were nearing retirement. Over the years, with the help of their financial advisor, they made solid investments in securities and built a sizable portfolio. While their investments increased substantially in value, their potential capital gains tax bill was rising. Now with retirement on the horizon, they were looking for a way to sell their highly appreciated stock, generate income for their future and avoid paying high capital gains tax.
Peter: For many years we had supported the work of our favorite charity. Through an e-mail we learned that we could make a gift of our appreciated stock to charity and bypass the potential capital gains tax cost we were facing. I was thrilled to learn that after transferring our portfolio to a charitable remainder trust, the trust would sell the stock tax free.
Gail: I liked the fact that the trust would provide us with income for our retirement years. If something happened to Peter, I would still be taken care of for the remainder of my life.
Peter and Gail decided to make a gift of their appreciated stock to establish a charitable remainder unitrust. They were thrilled at the prospect of creating future income while bypassing capital gains tax.
Peter: When I heard that in addition to the other benefits we would receive a charitable deduction for our gift, it was just icing on the cake! I wondered why everyone nearing retirement doesn't set up a charitable trust.
*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 unitrust benefits may be different, you may want to click here to view a color example of your benefits.
WASHINGTON NEWS

Highway Bill Still in Park

The Senate Finance Committee scheduled a hearing on June 26 to mark up the Preserving America’s Transit and Highways Act of 2014. However, Senate Finance Committee Chairman Ron Wyden (D-OR) postponed the hearing to permit taxwriters from the House and Senate to work on a bipartisan agreement. The highway bill must be passed by August to continue federally-funded transportation projects.
Senator Wyden noted that the bill should include new compliance provisions that will raise revenue. He stated, “Rather than raising taxes the legislation includes measures designed to boost tax compliance – to make sure that those who owe taxes pay them. And it also includes measures that the committee has passed in previous years on bipartisan votes.”
There are multiple provisions in the bill designed to raise revenue. First, there is an added tax on heavy vehicles weighing more than 97,000 lbs. Second, the bill adopts a proposal that has been previously made to require IRA distributions to children within a term of five years.
Under current law, most children who are designated beneficiaries of an IRA are permitted to take a “stretch” distribution over their life expectancy. For example, a daughter age 59 who is the designated beneficiary on her mother’s IRA may take distributions from age 60 through age 87. The distributions start at approximately 4% and increase over her lifetime until the IRA is fully distributed. While the daughter may take more rapid distributions, many children wisely will use the stretch provisions to benefit from tax-free growth inside the traditional IRA during their life expectancy.
Under the five year distribution provision (also previously proposed in other bills), the daughter would take distributions from age 60 to age 64. These larger distributions from a traditional IRA would result in higher income taxes. Some annuity contracts that have commenced payments prior to the demise of the owner would be grandfathered under the bill.
Ranking Member Orrin Hatch (R-UT) was pleased that Chairman Wyden chose to pursue a bipartisan bill. He stated, “We have to get it right when it comes to funding the highway trust fund, and that means working in a bipartisan and bicameral manner to create a bill that is acceptable to both sides and both chambers. This means real cuts to wasteful and low-priority spending must be included.”
Chairman Wyden and Senator Hatch plan to work with House Ways and Means Committee Chairman Dave Camp (R-MI) during the Fourth of July holiday to develop a compromise bill. Hatch has suggested that revenue from reduced electric vehicle credits and expanded oil and gas production could provide sufficient funding.
The House Democratic revenue preference is substantially different. House Budget Committee Ranking Minority Member Chris Van Hollen (D-MD) stated, “The Highway Trust Fund will start running dry in August if we fail to act, threatening hundreds of thousands of jobs. By curbing corporate expatriations, we can put people to work and boost our economy at a critical moment in our recovery.” Van Hollen referred to proposed bills by House Democrats that would penalize major public corporations who move their headquarters overseas to reduce their U.S. taxes.
Editor’s Note: The construction industry very much hopes that House and Senate negotiators will come to an agreement over the July 4th holiday. The final bill must be passed by August to avoid loss of thousands of construction jobs. While the five year IRA distribution plan may not be in the final bill, it now is likely to be presented as a tax offset in future legislation and may be passed at some point.
FINANCES


Stocks - Sonic Skates to Another Strong Quarter
Sonic Corp. (SONC), the nation’s largest drive-in chain, announced its third quarter results on Monday, June 23. The company experienced impressive revenue and earnings growth.
Sonic reported net revenue for the quarter of $152.2 million compared to revenue of $146.6 million reported during the same period last year. Sonic’s revenue growth was driven by a 5.3% same-store sales increase.
Sonic Corp. CEO Clifford Hudson had this to say about the company’s results: “Same-store sales for the quarter were especially strong, driven by our innovative product news, layered day-part promotional strategy and increased media efficiency. The multiple initiatives we have in place to increase sales, profits and new drive-in development are working together nicely to optimize shareholder value. We have implemented our new point-of-sale system in all of our company drive-ins and expect to have the new digital point-of-purchase technology implemented in all of our company drive-ins by the end of summer.”
Net income for the quarter was $16.8 million or $0.30 per share. This was a significant increase over the net income of $14.8 million or $0.26 per share reported during the comparable period last year.
Sonic has been turning in positive results for the past few quarters producing growth in revenue and net income. The company now operates around 3,500 drive-ins and serves close to three million customers a day. This latest quarter was just another reason for investors to have confidence in the company. Especially encouraging was the same-store sales increase of 5.3%. The stock has gone from a 52-week low of $13.63 to over $22 per share.
Sonic Corp. (SONC) shares ended the week at $22.16.
Barnes & Noble Siphons Off NOOK
Barnes & Noble, Inc. (BKS) reported its fourth quarter results on Wednesday, June 25. As part of the earnings release the company announced plans to separate its retail business from its NOOK segment.
Barnes & Noble reported revenue for the quarter of $1.3 billion. This was a 3.5% increase from the $1.28 billion reported during the same period last year.
“In fiscal 2014 we have taken certain actions to strengthen the Company, including the ongoing rationalization of the NOOK® business, growing the College business through new contract acquisitions and increased offerings to students and faculty, and initiatives to improve Retail’s sales trends,” said Barnes & Noble CEO Michael P. Huseby. “Our fiscal 2014 results and solid financial position at year-end reflect the positive impact of those actions. We believe we are now in a better position to begin in earnest those steps necessary to accomplish a separation of NOOK Media and Barnes & Noble Retail. We have determined that these businesses will have the best chance of optimizing shareholder value if they are capitalized and operated separately.”
The company recorded a net loss for the quarter of $36.7 million. Despite the quarterly loss, it was an improvement over the net loss of $114.8 million reported during the comparable period last year.
The big news with Barnes & Noble’s quarterly results was the company’s announcement of plans to separate its retail business from its NOOK business. Barnes & Noble’s NOOK tablet has faced difficulties as it has increasingly lagged behind Amazon’s Kindle and Apple’s iPad. Many investors believe Barnes & Noble’s retail business will be in a better position going forward without the NOOK segment dragging it down. In addition, investors hope the NOOK segment can be better operated as an independent entity. Reflecting that optimism for Barnes & Noble’s future, shares rose 5.3% after the earnings announcement.
Barnes & Noble, Inc. (BKS) shares ended the week at $23.42.
General Mills Experiences Declining Sales
General Mills, Inc. (GIS) announced the results for its fourth quarter on Wednesday, June 25. Investors were disappointed to see the company report a decline in sales and worse-than-expected earnings per share growth.
General Mills recorded net sales during the quarter of $4.28 billion. This was a 2.9% decline from the net sales of $4.41 billion reported during the comparable period last year. In addition, it was below pre-release estimates calling for net sales of $4.4 billion.
“Our plans for 2014 called for sales and earnings growth consistent with our long-term business model, along with increased cash returns to shareholders” said General Mills Chairman and CEO Ken Powell. “But our sales and operating profit results were disappointing. In the fourth quarter, promotional spending in developed markets was less effective than we planned and input cost inflation was a bit above our forecast. Net sales and adjusted gross margin fell short of our targets.”
The company reported that earnings per share experienced a 16% increase to $0.66 from the comparable period last year. However, this figure was below pre-release estimates that earnings per share would rise to $0.72.
Like other cereal producers, General Mills has faced difficulties as consumers have turned to healthier breakfast options like oatmeal, energy bars and yogurt. Though the company has launched Greek yogurt varieties of its Yoplait brand, it still has been unable to top industry leader Chobani. Delving into the company’s fourth quarter performance, investors were not pleased to see domestic sales fall 1% and international sales fall 7%. In an effort to get back on track, General Mills announced plans to cut costs through a review of its manufacturing and distribution networks.
General Mills, Inc. (GIS) shares ended the week at $52.31.
The Dow started the week of 6/23 at 16,947 and closed at 16,852 on 6/27. The S&P 500 started the week at 1,963 and closed at 1,961. The NASDAQ started the week at 4,369 and closed at 4,398.
Bonds - Bleak GDP Report Drives Treasury Gains
Treasury prices rose on Friday, June 27 as investors fled to the security of U.S. government bonds on the heels of a disappointing first quarter final GDP estimate. As the second quarter comes to a close, the ten-year note is poised to gain for a second consecutive quarter.
On June 25 the Commerce Department announced that its final estimate of U.S. GDP for the first quarter showed the economy shrank at an annualized rate of 2.9%. This news shocked economists. The 2.9% contraction in GDP was the worst quarterly performance the U.S. economy has experienced since the first quarter of 2009. In addition, claims for jobless benefits were higher than economists’ forecast.
“The data have been very disappointing—2014 should have been a breakout year for growth with consensus estimates close to 3% for the year,” said strategists Amitabh Arora and Kevin Shapiro.
The decline in GDP resulted in yields on the 10-year Treasury note falling one basis point to 2.518% during early Friday trading. This caused prices to rise because yields move inversely to prices. The 30-year bond yield fell one basis point to 3.346%.
The sharp decline in U.S. economic growth during the first quarter cast doubt on the prospect that the Federal Reserve will raise interest rates in the near future. Traders lowered the chance the central bank will raise interest rates by July of 2015 from 66% to 54% in response to the GDP news.
“We’re going to linger near current rate levels until we get a better read on Q3 growth in the U.S.,” said William O’Donnell and Gabriel Mann of RBS. “This is when we should get a better sense of the true run rate of the U.S. economy with numbers that will be presumably free of the weather distortions that made for such a bumpy ride in the first half of this year.”
The 10-year Treasury note yield finished the week of 6/23 at 2.53% while the 30-year Treasury note yield finished the week at 3.36%.
CDs and Mortgages - Interest Rates Decline on GDP Report
Freddie Mac released the results of its latest Primary Mortgage Market Survey (PMMS) on Thursday, June 26. The results show mortgage rates declining as the final estimate of GDP for the first quarter showed the economy contracting by 2.9%.
The 30-year fixed rate mortgage averaged 4.14% this week. This represents a decrease from last week when the 30-year fixed rate mortgage averaged 4.17%.
This week, the 15-year fixed rate mortgage averaged 3.22%. This was a decrease from last week when the 15-year fixed rate mortgage averaged 3.30%.
Frank Nothaft, Vice President and Chief Economist at Freddie Mac, commented on this week’s rate decrease: “Mortgage rates were down following the release of first quarter real GDP final estimate, which fell at a 2.9% annualized rate, a steeper than expected decline and the worst reading since the first quarter of 2009. Also, the seasonally-adjusted S&P/Case-Shiller 20-city home price index was up only 0.2% in April from the previous month. On a year-over-year basis, prices remained strong in April up 10.8%, but slower than the 12.3% in March.”
The money market fund finished the week of 6/23 at 0.4%. The 1-year CD finished at 0.7%.
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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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