HOW IT WORKS
NO CAN DO
TECHNICALLY SPEAKING
THINGS I KNEW AT ONE TIME BUT FORGOT
THE TIMES ARE A CHANGIN'
100
Highest or lowest: With a charitable gift annuity, this is the AFR to choose if the donor is not taking a charitable income tax deduction.
What is a lowest AFR?
100
This law allowed individuals to contribute a maximum of $100,000 to ministry directly from their retirement plan.
What is the IRA Rollover/section 408(d)(8)/QCD?
100
The "person" that determines when, how much and the ministry to receive distributions from a family gift fund.
Who is the LCMS Foundation?
100
Two Foundation planned gifts instruments that must distribute 100% to LCMS (other than non-charitable payments.)
What are endowments and gift annuities?
100
Mike and Carol Brady fund a charitable remainder trust with stock with the Foundation. This is the name of the trust.
What is M.B. and C.B.?
200
This is the state law that governs the Foundation's charitable remainder trusts.
What is Missouri?
200
William and Kate contribute a home to a charitable remainder trust. The Foundation can sell the home to anyone but these people.
Who are the lineal descendents of William and Kate - children, grandchildren and greatgrandchildren and the spouses of children, grandchildren and greatgrandchildren?
200
The only certain way to be sure IRD is avoided when naming the beneficiary on a retirement plan.
What is name a ministry as the beneficiary directly on the beneficiary designation form?
200
80 year old Dolores is trying to decide between a charitable gift annuity or annuity trust that pays her a fixed amount for her life. She would like the largest income tax deduction. Wise gift planning counselor responds with this.
What is the charitable income tax deduction is the exact same with a gift annuity and annuity trust?
200
Generally, there is a 7% distribution to the Foundation for handling bequests. This eliminates the 7% distribution.
What is a minimum 25% distribution to a Foundation owned perpetual endowment fund?
300
Minimums to establish a Foundation endowment fund.
What is $25,000 for a perpetual endowment and $10,000 for a non-perpetual endowment?
300
Donors deducted their Florida vacation home that they donated to their favorite ministry. The home next door is identical to their house and sold a few days prior to their gift and so the donors used this value as value of their charitable income tax deduction. This is the IRS's response.
What is deduction denied since the donors did not obtain a qualified appraisal?
300
This is how payments from a charitable remainder trust are taxed.
What is the "four tier tax"/worst first system?
300
Martin makes a charitable gift in 2015. This is the latest year Martin could still be taking a charitable deduction for that gift.
What is 2020? (Year of the gift + 5 additional years)
300
Jacob set up a testamentary charitable trust to pay to his sons and then on to his son's children named as a class. In addition to Joseph's biological children, these children are also included as trust recipients on Joseph's death.
What is adopted children?
400
Despite all its attention in the charitable giving field, this ranked 11th in a recent study of motivations for giving among high net worth donors.
What is a charitable income tax deduction?
400
Donors are interested in a pour-over trust that pays their children a fixed amount over time. The would like to name the trust in their will to receive 30% of their assets. Wise gift planning counselor says this.
What is the Foundation prefers that pour-over annuity trusts receive funding from contractual death benefits?
400
$5,430,000
What is the current FEDERAL estate tax exemption amount?
400
Assuming using the highest AFR, these are the two ways to increase the charitable deduction when establishing a charitable gift annuity.
What is decrease the gift annuity payout percentage and establish a deferred charitable gift annuity?
400
Fred plans to use his only IRA in part to make bequests to various LCMS ministries using the services of the LCMS Foundation and the other part to fund a Foundation endowment fund. This Foundation form would be helpful in directing the funding of the the gifts.
What is a "letter of direction"?
500
When gift annuity payments are taxed 100% as ordinary income.
What is when the annuitant(s) live beyond their estimated life expectancy as determined by the IRS life expectancy tables at the time the gift annuity was established?
500
Farmer Ben would like to retire and contribute his farmland to a split-interest gift that pays him a stream of income for life. He wants a fixed payment. Other than the appraisal, the Foundation would need this to consider a gift that would accomplish Ben's goals.
What is an interested buyer in the wings?
500
These are the current federal income tax capital gain tax rates.
What is 0%, 15% and 20%? (Also additional 3.8% for net investment income tax)
500
Donors established a FND endowment that pays 10% to St. John Lutheran Church. Years later, St. John closes its doors. This is what happens to the distribution to St. John.
What is whatever the endowment agreement states? May have named alternative ministry. Otherwise, default language states prorata to the other named ministries.If no other ministries named, Foundation selects ministry.
500
These are the conditions needed for an attorney exception for testamentary charitable remainder trusts.
What are: annuity trust, funded by beneficiary designation with asset taxable to heirs at death, funding is less than 20% of estate, not recommended additional gifts from donor's estate, encouraged donor to consult independent legal counsel, encouraged donor to discuss plan with heirs, and donor signs letter indicating all of the above.
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