In Exodus 25, "The Lord said to Moses, 'Tell the Israelites to bring me an offering. You are to receive the offering for me from everyone whose heart prompts them to give. . . . Then have them make a sanctuary for me, and I will dwell among them'" (Exodus 25:2 and 25:8, NIV).
From the offerings of the people, the Lord built his dwelling place. He didn't need the gifts of the Israelites to create his sanctuary, but the Lord of all the universe gave them the privilege of participating in his work. What an honor!Just as the Israelites' offering helped build God's kingdom, your gifts are helping to build his kingdom as well. Thank you for your faithfulness in giving.
If you have any questions related to planned giving, please let us know how we can help you facilitate giving to the ministry of your choice. To read about our services, visit www.NazareneFoundation.org.Blessings,
Kenneth R. Roney, J.D.
President
P.S. For more information on how to use your resources to support the future of your favorite ministry, please reply to this e-mail or contact us by phone at 913.577.2983.
PERSONAL PLANNERWills - Good and Bad
Where is the Missing Will?
More than 40 wills were submitted to the probate court, with a multitude of potential heirs each claiming to be the true recipient of a wealthy business owner who passed away in 1976. With a $2.5 billion estate at stake, there was intense interest in the decision of the court.
After extensive review of the 40 documents, the court finally determined that none of the 40 wills were valid. Because there was no valid will, the court divided the $2.5 billion estate among 22 relatives. Court costs, attorney costs and estate taxes were enormous, but the 22 heirs still each received millions of dollars.
Why is a Will Important?
There are at least seven reasons for creating a will. A "peace of mind" estate plan starts with your will. The will passes your property to family, friends and favored organizations, could direct distribution of a recent inheritance, may fix errors in living trust funding, allows you to select a guardian, enables you to disinherit a child or other relative, permits you to select your executor and may help with a simplified probate.1. Transfer of Property: There are some types of property that are best transferred by will. Many types of personal assets are difficult to transfer through a living trust or are not appropriate for a "pay on death" transfer. Because vehicles and other personal assets are likely to be bought and sold, it is much easier to keep vehicles, furniture, collections and other items in the probate estate and transfer them by will.
2. Potential Inheritance: You might be planning to receive an inheritance from a parent or other relative, but the inheritance could be delayed by the probate process, potential estate issues or other reasons. Therefore, when you finally receive title to the property, there may not be a convenient time or opportunity to transfer the assets into a revocable living trust. As a result, the inheritance will form part of your estate.
There also have been cases in which a person passes away in a tragic accident. The estate may receive an insurance settlement or a claim under a wrongful death action. These assets would become part of the probate estate and are transferred under the residuary clause of your will.
3. Living Trust Errors: A living trust is a very appropriate way of avoiding the probate process. However, in too many cases a person has a valid living trust but has not properly transferred the real estate, securities accounts or other assets to the trust. As a result, the property that has not been legally transferred to the trust will be part of the probate estate covered by your will.
4. Guardian for Minors: The selection of a guardian for minor children is done through your will. Most states do not permit you to use a living trust (there are a few exceptions) for this purpose, so it is very important to designate the guardian in your will. When you create the will and designate the guardian of the person, it is also quite common to establish a family trust for the minor children and appoint the trustee.
5. Disinherit Someone: It is possible to disinherit a child or other heir. The appropriate place to explain that disinheritance or explain why the inheritance is a nominal amount (such as $1.00) is in your will.
6. Select the Executor: Your executor is a key person for a successful estate property transition. The executor will inventory your estate, advertise for creditors, pay bills and taxes, submit your will to the probate court and obtain the court's approval for the final distribution. Your will is the document in which you will name your executor. Even if you have a revocable living trust with a trustee and a successor, it is essential to select an executor who will manage your probate property.
7. Simplify Probate: In many states it is possible for people who pass away with modest to moderate resources to have a simplified or summary probate. This permits your executor to manage your property and make distribution of it with very minimal contact with the probate courts. For example, California allows many estates with assets valued under $150,000 to use a simplified probate process. The executor will follow the directions in your will and distribute your property accordingly. In most cases, this will simplify administration and reduce your estate costs.
Good and Bad Wills
As was the case in the estate of Business Owner, there are many submitted wills that are not deemed valid or legal. In order to have a valid or legal will, you need to comply with the state law requirements for wills. While there is some variation between the states, most states will follow several guidelines.
1. Legal Age: In most states you must be 18 years old to sign a will.
2. Sound Mind: As we become more senior, we do not have as clear a mind as we had back in our youth. Most states permit you to create a will if you have "lucid intervals" and understand the nature of your property and the fact that the will is going to direct the transfer of that property to your selected recipients.
3. Typed or Printed: A will normally is either typed or printed. While some states permit handwritten or other types of wills, the vast majority of wills will be typed or printed and will contain at least one substantive transfer of property.
4. Date and Sign: Your will must be dated and signed. The date is essential in order to make certain that this is your final will. Many individuals might write and sign two or more wills during a lifetime. Only your final will is going to be used by the probate court to distribute your property.
5. Witnesses: Under your state law, you will need to sign your will in the presence and hearing of two witnesses. Your witnesses must be adults who are of sound mind and should not be beneficiaries under the will. They need to be told that this is a will, but you do not need to disclose the contents of your will to the witnesses.
6. Self-Proving Will: In some states, it is permissible to have a notary or an affidavit witness form in which the will is either notarized or the person pledges under perjury that this is a valid will. If the will is "self-proved," it will simplify the probate process. Ordinarily, the witness is not required to testify in the probate court with a self-proved will.
SAVVY LIVINGA Guide to Finding Affordable Dental Care
I had dental insurance through my work for many years but lost it when I retired. Where can retirees find affordable dental care?
Finding affordable dental care can be challenging for seniors living on a tight budget. Most retirees lose their dental insurance after leaving the workplace and original Medicare does not cover cleanings, fillings or dentures. There’s not just one solution to affordable dental care. There are a number of options that can help cut your costs. Here’s where to look.
Medicare Advantage
While original Medicare (Part A and B) and Medicare supplemental policies do not cover routine dental care, there are some Medicare Advantage (Part C) plans that do. Many of these plans, which are sold through private insurance companies, cover dental care, eye care, hearing and prescription drugs as well as hospital and medical insurance. If you’re eligible for Medicare, see medicare.gov/find-a-plan to look for Advantage plans in your area that cover dental care.
Dental Discounts
Another way you can reduce your dental care expenses is to join a dental discount network. How this works is you pay an annual membership fee – around $80 to $200 a year – in exchange for a 10% to 60% discount on service and treatments from participating dentists. To find a network, go to DentalPlans.com (or 888-632-5353) where you can search for plans and participating dentists by zip code and get a breakdown of the discounts offered.
Another option that’s currently available only in the Southern California area is Brighter.com. They provide users free access to a network of dentists offering up to 50% discounts on all services.
Dental Schools
Dental school clinics offer saving opportunities too. All 65 accredited dental schools in the U.S. offer affordable care provided by dental students who are overseen by their professors. You can expect to pay about half of what a traditional dentist would charge and still receive excellent, well-supervised care.
Another option is to check with local colleges that offer dental hygiene programs. For training purposes, many programs provide teeth cleanings by their students for a fraction of what you would pay at a dentist’s office.
To search for nearby dental schools or dental hygiene programs visit ada.org/dentalschools.
Veterans Benefits
If you’re a veteran enrolled in the VA health care program or a beneficiary of the Civilian Health and Medical Program (CHAMPVA), the VA is now offering a dental insurance program that gives you the option to buy dental insurance through Delta Dental and MetLife at a reduced cost.
The VA also provides free dental care to vets who have dental problems resulting from service. To learn more about these options, visit va.gov/dental or call 877-222-8387.
Low Income Options
If you’re low income, there are various programs and clinics that provide dental care at a reduced rate or for free. To look for options in your area contact your state dental director (see astdd.org) or your state or local dental society (ebusiness.ada.org/mystate.aspx).
You may also be able to get discounted or free dental care at one of the federally funded HRSA health centers (findahealthcenter.hrsa.gov, 877-464-4772) or at a privately funded free clinic (nafcclinics.org).
Also, check with the Dental Lifeline Network (dentallifeline.org, 888-471-6334) which provides free dental care for low-income elderly and disabled; Remote Area Medical (ramusa.org) which offers free health, eye and dental care to people in select locations; and Indian Health Service (ihs.gov), which provides free dental care to American Indians and Alaska Natives who are members of a federally recognized Indian tribe.
Also see toothwisdom.org, a website created by Oral Health America that will help you locate low-cost dental care.
Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These 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 Living, P.O. Box 5443, Norman, OK 73070.
YOUR PLANPart Gift and Part Sale
Susan and Kevin bought a vacant lot along Lake Michigan many years ago. They had planned to build a second home so that their children could spend their summers along the lake. However, as time went on, Kevin's job kept him in town and the children grew up before Susan and Kevin had the financial resources to build on the land.
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 NEWSPresident Declares Ebola Outbreak A “Qualified Disaster”
In Notice 2014-65 the IRS designated the Ebola outbreak in Guinea, Liberia and Sierra Leone as a “qualified disaster.” Under Sec. 139 of the Code, payments to victims of a qualified disaster are excluded from income.
The IRS Notice observes that there now are nearly 10,000 suspected or confirmed cases of the Ebola virus in West Africa. There are over 4,800 reported deaths.
President Obama has called the Ebola outbreak a “health emergency, a humanitarian crisis, and a national security priority.” He has directed The Center for Disease Control, The Department of State and The Department of Defense to provide assistance to the West African governments.
Because Ebola has been declared a qualified disaster, relief payments to victims are not taxable. The qualified relief payments may reimburse a victim for personal, family, living or funeral expenses. Victims are also permitted to receive reimbursement for repair or rehabilitation expenses for a personal dwelling if those are needed to provide for their care.
In Notice 2014-68, the IRS also permitted employees to give their leave days to qualified charities involved in the Ebola effort. Employers may create leave-donation programs for this purpose.
If an employee makes a gift of his or her leave days to a qualified charity, the employer is permitted to transfer cash to the charity based upon the number of donated leave days.
The payments by the employer will be deductible on its business tax return, but they will not be taxable to the employee. However, there is no additional charitable deduction for the employee who has donated the leave days.
This plan is similar to the leave-donation programs that were created following Hurricane Sandy and Hurricane Katrina.
FINANCESStocks - Hershey’s Hopes Halloween Will Be Sweet
The Hershey Company (HSY) announced its third quarter earnings on Wednesday, October 29. An increase in quarterly sales was not enough to offset a drop in net income.
Hershey reported that net sales during the quarter increased 5.8% to $1.96 billion. This number was slightly below pre-release estimates that sales would be $1.97 billion.
“We made good progress against our third-quarter objectives as net sales, retail takeaway and market share trends improved versus the first half of the year,” said Hershey’s President and CEO, John P. Bilbrey. “Halloween seasonal orders and net sales were slightly better than our estimates. While preliminary, Nielsen data indicates Halloween sell through is on track and that we will gain market share in this important season.”
Net income during the quarter was $224 million. This was nearly a 4% drop from the $233 million reported during the same period last year.
Hershey’s third quarter provided a mixed message to investors. On one hand, the company saw positive sales gains. This was especially true in the U.S. as sales increased 4.2% in advance of the Halloween holiday. Hershey was optimistic that the 2014 Halloween season will see the company gain market share. However, the quarterly drop in net income did not match the quarterly sales increase. Hershey claims that the company’s gross margins will improve in 2015 as it fully implements cost cutting measures and price increases.
The Hershey Company (HSY) shares ended the week at $95.91.
Twitter’s User Growth Disappoints
Twitter, Inc. (TWTR), a popular social media site, announced its third quarter results on Monday, October 27. The company produced a disappointing quarter as user growth failed to match expectations.
Third quarter revenue increased 114% to $361 million. During the same period last year revenue was $169 million.
“We had another very strong financial quarter,” said Twitter CEO Dick Costolo. “I'm confident in our ability to build the largest daily audience in the world, over time, by strengthening the core, reducing barriers to consumption and building new apps and services.”
Twitter reported a larger net loss this quarter than the same period last year. This quarter the company’s net loss was $175 million, which was much higher than the $64 million loss last year.
Twitter’s management has been under fire lately and this later quarter did nothing to reduce the heat. Though the company experienced a 23% increase in average monthly users compared to last year, this increase was below expectations. Two days after reporting third quarter results, Twitter took action to turn things around when two of its senior managers decided to move on. Following the earnings release, Twitter saw its share price fall 10%.
Twitter, Inc. (TWTR) shares ended the week at $41.47.
Panera Sees Profit Decline
Panera Bread Company (PNRA) announced its third quarter earnings on Tuesday, October 28. The company posted a lower profit than analysts expected.
The company reported that revenue for the third quarter was $620 million. This was an 8% increase over the $472 million reported during the same period last year.
“The fact that we had 1.4% transaction growth in Q3, the highest since Q1 2012, speaks to the progress we have made in bending the arc on transaction growth in our core cafe business,” said Ron Shaich, Chairman and CEO of Panera. “Our initiatives to improve our core operations and thus increase throughput, along with food innovation and marketing innovation, are clearly having an impact.”
Net income during the quarter was $39.2 million. This was an 8% decline from the $42.7 million reported during the same period last year.
Panera Bread, much like Chipotle, has been a Wall Street darling. The company’s latest quarter, though, cast doubt on its love affair with investors. Not only did net income for the quarter come in under expectations, but Panera also reduced its forecast for the rest of the year. The company now expects its earnings per share to be in a range of $6.60 to $6.70. Following the earnings announcement, Panera saw its shares slide 1.4%.
Panera Bread Company (PNRA) shares ended the week at $161.64.
The Dow started the week of 10/27 at 16,796 and closed at 17,391 on 10/31. The S&P 500 started the week at 1,963 and closed at 2,018. The NASDAQ started the week at 4,469 and closed at 4,631.
Bonds - Treasuries Fall on Japanese Stimulus
Treasury prices fell on Friday, October 31 after the Bank of Japan announced plans to further boost the country’s ailing economy. As Japan plans to ramp up economic stimulus, the U.S.’s own stimulus program finally came to an end.
The Bank of Japan announced plans to raise its annual target for increasing its money supply to 80 trillion yen. The Japanese central bank hopes this stimulus will boost inflation and lead to economic recovery.
Japan’s economic stimulus plan produced a positive effect on global markets and U.S. bond yields. Global markets rose on the news as did U.S. bond yields. In addition, the U.S. dollar strengthened to its highest level against the yen in close to seven years.
While some analysts, such as Tiger Management LLC founder Julian Robertson, called Japan’s stimulus “dangerous,” others were more positive. “The stimulus is more positive for equities and it’s creating flows out of fixed-income,” said Guy LeBas, Chief Fixed-Income Strategist at Janney Montgomery Scott LLC.
In response to the news out of Japan, the U.S.’s benchmark 10-year note yield increased two basis points to 2.33%. Over the past two weeks the 10-year yield has increased 14 basis points.
Another factor affecting Treasury prices this week was news that the U.S. economy grew at a 3.5% annualized rate in the third quarter. The 3.5% gain follows a 4.6% gain during the second quarter. Together, the second and third quarters of this year were the strongest back-to-back increases since 2003.
The 10-year Treasury note yield finished the week of 10/27 at 2.34% while the 30-year Treasury note yield finished the week at 3.06%.
CDs and Mortgages - Interest Rates Rebound on Home Sales
Freddie Mac released the results of its latest Primary Mortgage Market Survey (PMMS) on Thursday, October 30. The results show mortgage rates rebounding from last week when rates reached their lowest point of the year.
The 30-year fixed rate mortgage averaged 3.98% this week. This was an increase from last week when it averaged 3.92%.
This week, the 15-year fixed rate mortgage averaged 3.13%. This was up from last week when the 15-year fixed rate mortgage averaged 3.08%.
Frank Nothaft, Vice President and Chief Economist at Freddie Mac, had this to say about this week’s rates: “Mortgage rates grew across the board this week, rebounding from the lowest rates of the year. New home sales grew at an annual rate of 467,000 sales in September, the fastest rate observed during the recovery. Meanwhile, the National S&P Case-Shiller House Price Index grew at a seasonally adjusted annual rate of 0.4% in August.”
The money market fund finished the week of 10/27 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
____________________________
No comments:
Post a Comment