OPPORTUNITIES FOR GIVING

Other (Non-Will) Ways to Give With Your Estate Assets

Life Insurance
Retirement Plan Assets at Life's End
"Payment on Death" accounts and "Transfer on Death" securities
Gifts to Charitable Remainder Trusts
Charitable Gift Annuity

Before you make final arrangements to direct one or more of your major assets as a Planned Estate gift to Bethel Bible Village Children's Home, we encourage you to consult with your personal financial, tax and legal advisors. You should always be sure that any of these giving plans suggested below are coordinated with your intentions as spelled out in your latest Will and/or Revocable Living Trust.

Gift of Life Insurance:

1. You can name Bethel Bible Village Children's Home as a primary or joint beneficiary on a policy that is no longer needed to protect the original beneficiaries. Premiums are not income tax deductible, but death proceeds to Bethel will be estate tax deductible.

2. You can name Bethel Bible Village Children's Home as secondary or final beneficiary on an existing or new policy. If the primary beneficiaries die before you do, then Bethel Bible Village Children's Home will become the beneficiary. Premiums are not income tax deductible, but any death proceeds to Bethel will be estate tax deductible.

3. You can transfer ownership of a paid-up policy to Bethel Bible Village Children's Home. This is appropriate where a policy has outlived its original purpose.. Any cash surrender value can be income tax deductible, and death proceeds to Bethel will not be taxable in your estate.

4. You can buy insurance to replace the value to your family of assets you may have given to Bethel Bible Village Children's Home during life or through your estate plan.

5. You can buy a new policy to fund a major life's-end gift to the children of Bethel Bible Village Children's Home. If you make Bethel Bible Village Children's Home the legal owner and the beneficiary, the premiums payments can be income tax deductible, and the death proceeds to Bethel will not be taxable in your estate.

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Gifts of Retirement Plan Assets at Life's-End:

When you participate in a retirement plan (qualified pension and profit-sharing plans, 401K Plans, Keogh Plans, and traditional IRAs, you set aside money, tax deferred, to use later.

If you and your spouse die before withdrawing all of your funds from these tax-deferred plans, the unused funds will be subjected to the estate tax, and to the income tax previously deferred. These combined taxes can consume more than 80% of you unused retirement assets at life's end, depending on your combined tax brackets. Directing some of these potentially unused retirement assets, at life's-end, to a charity will eliminate the estate and income taxes on the assets donated. It is important for you to consult your tax advisor since there are certain beneficiary and property transfer rules that have to be complied with to maximize the tax savings on retirement assets transferred to charity.

You may want to consider using your anticipated unused retirement assets to fund a bequest to the Bethel children.

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"Payment on Death" accounts
and "Transfer on Death" securities:

You can direct your bank or other financial firm to pay or transfer ownership of any remaining balance in a checking account, savings account, CD's, and certain securities directly to Bethel Bible Village Children's Home, upon your death. This arrangement is commonly called a "Totten Trust". By creating this arrangement, you are in effect naming Bethel Bible Village Children's Home as the beneficiary of any value in such accounts at your death.

Always ensure that any such arrangement is coordinated with the asset distribution plan in your Will or Revocable Living Trust.

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Gifts to Charitable Remainder Trusts:

If you have significant assets (land or marketable securities, etc.) that have appreciated in value above their cost or other tax basis, you might want to consider donating some of those assets to a Charitable Remainder Trust, naming Bethel Bible Village Children's Home as the remainder beneficiary.

The assets placed in such a trust can be sold by the trustee without paying taxes on the capital gains. The trust does not pay taxes since it is considered a charitable entity. Bethel Bible Village Children's Home will receive any remainder asset value at your death, or at the end of trust period.

You will receive an income tax deduction for part of the value of the property that you transfer to the trust. During the term of the trust, or your remaining life, you will receive annual trust payments equal to at least 5% of the value of the trust assets. You determine what percentage is paid out to you when you set up the trust. At your death the value of trust assets are not taxable as part of your estate.

This arrangement is backed by the value of the assets in the trust, and not by the assets of Bethel Bible Village Children's Home.

You can guarantee a life's-end gift to Bethel Bible Village Children's Home while continuing to use the income from those assets during you lifetime. A Charitable Remainder Trust is an irrevocable agreement, and you can not take the assets back once donated to the trust.

If you would like more information on this type of gift arrangement, contact Bethel Bible Village Children's Home's Development Office at e-mail ront@bethelbiblevillage.org, or 423-842-5757, or toll-free 888-228-9499.

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Gift using a Charitable Gift Annuity:

You can guarantee a life's-end gift to the children of Bethel Bible Village Children's Home while retaining a lifetime interest in the your asset and its earnings - - through a purchase of a Charitable Gift Annuity from Bethel Bible Village Children's Home.

A charitable Gift Annuity is a contract between you and Bethel Bible Village Children's Home. You agree to exchange cash, securities or other marketable assets to Bethel in return for Bethel's promise to pay you a fixed amount each year for the rest of your life. A portion of each year's periodic payments to you is considered taxable income, and the remainder is considered a return of your principal. The annuity is backed by the general net assets of Bethel Bible Village Children's Home. Such a contract is irrevocable.

The annual annuity payment amount is determined using rates published by the Council on Gift Annuities. The rates used to determine the annual annuity payment are based on your age at the date you transfer your assets to Bethel. The payout rate is actuarially determined assuming that half of your original principal will be returned to you as part of you annual payments over your life. In effect, they assume that Bethel Bible Village Children's Home will receive approximately half the value of your original amount at your death.

If you think such an annuity arrangement would serve your financial and charitable purposes, please contact our Bethel Development office at e-mail ront@bethelbiblevillage.org, or 423-842-5757, or toll-free 888-228-9499.

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