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VIII. Estate Planning Services, Covenant Trust Company

A. Services Available | B. Estate Planning Services | C. Bequests | D. Life Income Agreement

INDEX

D. Life Income Agreement with one or more Covenant Ministries as Charitable Beneficiary

Information helpful for everyone-individuals wishing to establish charitable life income agreements which include one or more Covenant ministries as charitable beneficiaries; pastors and/or church leaders hoping to raise awareness and increase the number and amount of deferred gifts designated for their church or ministry.

INTRODUCTION
Charitable life income agreements offer the opportunity for individuals and families to achieve several personal financial goals simultaneously, including making a contribution to the Lord's work. There are several different agreement types, one of which may work for you. The Office of Estate Planning Services can provide a personalized illustration showing the specific lifetime payments, charitable contribution deduction, and capital gains tax savings available to a prospective donor.

PRESENTATION
When should you consider planned giving strategies which may include some type of life income agreement?

• If you have a charitable dream-a desire to give
• If you own highly appreciated assets-worth significantly more now than when you bought them, thus subject to capital gains taxes
• If you would like to reduce the amount of income tax you pay
• If you need additional income
• If you have a child, family member, or friend who needs additional income
• If you want or need to diversify your asset holdings

How a Life Income Agreement Works

• You place cash and/or one or more appreciated assets into a life income agreement. Charitable gift annuities or pooled income funds may be funded with cash, stocks or bonds. Irrevocable charitable trusts may be funded with cash, stocks, bonds or, in some cases, real estate.
• You receive payments for life (you, or you and another person). Total payments received may equal or exceed asset value.
• You receive a charitable income tax deduction for the current year for a portion of the current value of the gift.
• You reduce or eliminate tax on capital gains.
• Charitable organization of your choice receives remainder after death.

Other assets (those not funded into the life income agreement) pass to family through your will, trust or by designation of beneficiary.

For further information and/or a personalized illustration, contact your regional Covenant Estate Planning Officer (see Seminars for listing), or the central office at 800-483-2177.

(All material is presented for educational purposes only, and represents our current understanding based on information received from our tax and legal advisors. It is meant to provide information about the various personal, tax and economic benefits which may result from different estate planning and planned giving ideas. Because situations differ, it is important for you to have an estate plan specifically designed to fulfill your objectives. Nothing in this material is intended as legal, tax or investment advice. Laws and procedures are constantly changing, are subject to differing interpretations and may vary from state to state. If you require legal, tax or investment advice, you should consult a competent attorney, tax or investment advisor.)