Leading the way to finish the task in this generation

By Steve Davis, Director of Gift Planning, Wycliffe Foundation    Looking for a way to make a greater Kingdom impact, especially through the work of Bible translation? You may not think you can, because:  • You have non-cash assets, • You desire to pass these assets to family and/or • You would pay capital gains […]

By Steve Davis, Director of Gift Planning, Wycliffe Foundation
 

Steve Davis

 Looking for a way to make a greater Kingdom impact, especially through the work of Bible translation? You may not think you can, because: 

• You have non-cash assets,

• You desire to pass these assets to family and/or

• You would pay capital gains and gift tax.

What if you could use these assets, transfer more to your children tax-free and still impact the Kingdom? A charitable lead trust (CLT) can do this, and it’s the right tool for this time.

Your opportunity to effectively transfer assets to the next generation has never been better. Rates that predict how much assets will grow in the trust are at an all-time low, making this a timely and wise decision. Many assets, such as securities and businesses, are severely depressed, and it’s likely that they’ll appreciate at a rate well beyond this in the coming years. The combination of low rates and depressed asset values provides a rare opportunity to maximize the use of a CLT.

How does a CLT work?

You transfer assets such as cash, real estate, stocks or business interests to a trust for a set number of years. Each year, payments are made as a fixed percentage from the trust to the ministries of your choice. For even more flexibility, you can set up a Wycliffe Donor Advised Fund, and the trust payments can be made to your DAF. From here, you recommend grants to your favorite Kingdom causes, such as Bible translation.

When the trust expires, the remainder passes to your family. Once the assets are contributed to the CLT, they are immediately removed from your taxable estate, and all assets—including future appreciation—pass to your children and bypass the estate tax.

Who can utilize this? CLTs are the perfect tool for stewards who desire to exercise wise Biblical stewardship, produce greater Kingdom impact and give resources tax-free to family and loved ones.

What are the benefits of a CLT ?

• Trust receives annual charitable deduction for amounts paid to charity,

• Appreciation in value is not included in your estate,

• Assets required during lifetime can be committed to ministry at death,

• Additional Kingdom impact, and

• Assets passed to family with reduced or zero tax.

You see, there is a solution to the desire to impact the work of Bible translation and provide for your family. Consider a CLT and lead the way to finishing the task of Bible translation in this generation.  

Neither the author, the publisher, nor this organization is engaged in rendering legal or tax advisory service. For advice or assistance in specific cases, the services of an attorney or other professional adviser should be obtained. The purpose of this publication is to provide general gift planning information. Watch for tax revisions. State laws govern wills, trusts, and charitable gifts made in a contractual agreement. Advice from legal counsel should be sought when considering these types of gifts. © Copyright Wycliffe Foundation