C e l e b r at i n g G o d ’ s W o r k T h r o u g h
Inheritance and
Estate Planning Seminars
God-honoring estate and
inheritance planning begins with
Biblical principles for protecting
and providing for family, and then
provides a gift from the estate to
ministry.
The California Baptist
Foundation’s estate planning
attorneys can provide guidance
through the difficult, yet
important, end-of-life decisions
that must be made. This allows
families to be sure their loved
ones are taken care of first, and
enables a legacy gift to the
ministries that are dearest to their
hearts.
To receive more information or
to schedule a seminar at your
church, please call California
Baptist Foundation toll free at
(888) 607-7494 or email Becky
Horn at [email protected]
Seminars:
June 1 • 12:00 pm
Clovis Hills Community Church
(Clovis, CA)
June 8 • 12:00 pm
Faith Community Church
(Redding, CA)
June 22 • 1:00pm
Copper Canyon Church
(Copperopolis, CA)
You will find more information
about these and other
estate planning seminars on
our CBF home page at
www.californiabf.org
C a l i f o r n i a B a p t i s t F o u n d at i o n
My Friend Faye
M
y friend Faye is a very interesting mixture of dedicated disciple
and shrewd business woman.
I first met Faye Xezonatos when her pastor asked me to visit after her
husband George died in 1997. Faye wanted me to help her set up a
scholarship fund at her church in George’s memory. But, she added
with a smile on her face, that she also had some “worthless stock”
she wanted to talk to me about. That worthless stock would turn out to be God’s financial
provision for Faye.
The story began when Faye and George purchased 10 shares of stock for $12.50 per share back
in 1956. Sometime later the company that issued the stock went bankrupt. The Xezonatos’
chalked the experience up as just a bad investment. But while George was recovering from
his first cancer surgery in the early 1990’s he happened to read an article about how Warren
Buffett had purchased the same company out of bankruptcy many years before, and turned
it around. George and Faye lamented that they wished Buffett had been around when they
owned the stock.
Well, that got Faye to thinking. So several weeks later, she contacted the brokerage house
that had handled the purchase of the stock for them many years before, and sure enough
they still owned the stock! The name of the company was Berkshire Hathaway. At the time she
verified their ownership in the early 1990’s the stock was worth about $17,000 per share. When
her husband died in 1997 the stock was worth about $42,000 per share!
At my first meeting with Faye, she said she wanted me to help her give the stock away. To
make a long story short, I recommended that Faye consider purchasing gift annuities with the
stock. After doing her homework that is just what she did. When Faye signed the Charitable
Gift Annuity Agreement with the Foundation the stock was worth over $70,000 per share!
Faye paid no capital gains on the stock sale, and even got a partial tax deduction for
contributing the stock to a charity, and she is still receiving a fixed annual payment which
will continue for the rest of her life. Faye calls that an incredible example of God’s provision
and her first venture into “charitable investing.” Since then she has also funded a Charitable
Remainder Trust with real estate, and is talking about a second Charitable Remainder Trust.
‘‘
‘‘
Free
S p r i ng 2 0 1 4
Pathways
Over the years, several members of our
staff have had the privilege of helping Faye
with estate and gift planning matters. My
visits always involve a great theological
discussion, and some frank business talk.
Faye gave us permission to use her story
as an example of God’s provision, and as
an example of how God can provide for his
own in very unexpected ways. She wants to
make sure He gets the glory for taking care of one widow with some worthless stock.
Gifts of Stock
that Keep Giving
– Philip Kell, President
If you are interested in learning more about Charitable Gift Annuities or Charitable Remainder
Trusts give us a call at (888) 607-7494. You can read the entire story about My Friend Faye on
our website at www.californiabf.org.
A Message from the President
C
“
haritable investing” is a concept every faithful steward should
be familiar with. My friend Faye uses it to refer to the charitable gift
annuities and charitable remainder trust she has created. Those
methods of making
charitable gifts, which
we call “planned gifts”,
are generating streams
of income to Faye for her
lifetime.
‘‘
‘‘
Consider
charitable
investing …
Currently,
we
are
sending regular income
checks like these to
dozens of individuals
who have established
planned gifts. Most of
these planned gifts are
much smaller than Faye’s. But, all of them generate much needed
income for the faithful stewards who created them.
Charitable gift annuities currently pay a lifetime return of 4%
to 9% depending upon your age. Charitable remainder trusts
return from 4% to 6% for your lifetime and the income stream can
continue on to your children.
Both of these gifting
methods also generate a
current tax deduction for
the donor, and can reduce
or eliminate capital gains
taxes if they are funded with
appreciated assets like stock
or real estate.
While Faye was the first
person I ever heard use the
term “charitable investing”,
she did not invent the
concept. Jesus did. He said, “Sell your possessions and give to
charity; make yourselves money belts which do not wear out, an
unfailing treasure in heaven, where no thief comes near nor moth
destroys.” Luke 12:33
Charitable gift annuities and charitable remainder trusts let you
generate income and tax benefits for you and your family, and a
gift to the Lord’s work which will have eternal significance. That
really is “charitable investing” at its best. Give us a call if charitable
investing sounds like something you would like to consider.
Faithful Stewards Serving Faithful Stewards
California Baptist Foundation Officers and Board of Directors
The California Baptist Foundation’s Officers and Board of Directors serve the Foundation, giving of their time, expertise, talents and
heart. (front row, left to right): Ernest Ong, Bob Brown, Deryl Lackey, Chairman Gary Groat, Phil Kell, Vice Chairman Jonathan Jarboe,
Martin Stoops, Doug Griffin; (middle row, left to right): Garrett Perks, Pat McNally, Paul Wilkerson, Susan Morris, Brian Kennedy Sr.,
Daniel Bandy, David Ondo, Bob Lambeth; (top row, left to right): Bill Lewis, Bruce McAbee, Ralph Neal, Rob Zinn, Doyle Braden, Bob
Gallina, Rick Kasel, and Michael Nolen, President, California Southern Baptist Convention. Not pictured: Fermín Whittaker, Executive
Director CSBC.
Legal Update - Estate Planning in 2013
T
oday in Pathways, let’s look at what you need to do to
maximize the impact of God’s blessings after he calls you home .
. . in other words, how to Leverage Your Legacy.
Scripture teaches that “A man who fails to provide for his family
is worse than a non-believer” (1 Tim. 5:8). For the Christian,
providing goes beyond our lifespan with our loved ones, but also
into their future. Moreover, the admonition to provide goes far
beyond just money but rather looks at all that God has given us
– faith and family as well as finances. Inheritance planning thus
presents us with a three part task: (1) to understand the Biblical
and legal framework for the inheritance; (2) to analyze our family
and financial situation in light of this framework; and (3) to choose
and execute the optimal plan solution.
Recognizing that all property is truly God’s and not ours, Proverbs
teaches two important principles: (1) an inheritance quickly gained
will not be blessed at the end; and (2) that a good man leaves
an inheritance to his children’s children. And yes, these concepts
are concerned with a lot more than money. Legally, you may
easily structure an inheritance to meet these standards through
leveraging your assets.
concoction that occurs when
mom and dad are both
gone and seen it destroy
numerous relationships. Who
wants that when it can
be avoided or the risk
of disharmony at least
minimalized?
Finding a solution begins with
two basic questions: “who
should manage my finances
upon my incapacity or death;” and “how can my inheritance be a
blessing to my family and beyond?” These are matters of serious
consideration and prayer.
First, consider a professional trustee for asset management rather
than one of your children. While a bit more costly, consider the
benefits: (a) preserving family harmony by not placing one child in
a power position over his siblings by running the estate; (b) your
wishes being carried out to the letter; and (c) having a professional
administer your assets.
It is said that facts are stubborn things. Consider two unfortunate
truths in modern-day America. First, 85% of all inheritances are
gone within 18 months of receipt for vacations, clothes, furniture,
whatever. No college fund for the grandkids; no retirement nest
egg; no rainy day savings; no anything. If this doesn’t concern
you, look at it from a different angle: if you sold all your assets and
were managing your money solely to benefit your children, would
you simply dole it out, no questions asked?
Second, a legacy can easily be structured with proper guidance.
Asset-protected split-interest trusts, can in large part give your
estate twice – once as income generated from your assets to
benefit your family and second as deferred gifts to your church
or other ministries. Such a plan maximizes the utility of how your
wealth is passed on while leaving a legacy to benefit successor
generations. Please email me at [email protected] so we
can discuss how you can Leverage Your Legacy.
Second, in my 20 years of practicing law, I have continually
encountered the ugly psychological-emotional-entitlement
– Doug Griffin, Vice President
CBF’s 2013 Award of Excellence
R
ev. Peter Chung was the 2013 recipient of the Foundation’s
Award of Excellence at the October 2013 CSBC Annual Convention
at Shadow Mountain Church in El Cajon.
Each year the Foundation has the privilege of presenting this award
to an individual who has demonstrated a lifelong commitment
to serving our Lord with diligence and excellence, and who has
contributed significantly to
California Southern Baptist
work in California.
Philip Kell presenting the 2013
Award of Excellence to Rev.
and Mrs. Chung at the Annual
Convention in El Cajon.
Rev. Chung has served
as Senior Pastor of the
Mandarin Baptist Church
of Los Angeles since 1976.
Under his leadership weekly
attendance at the church has
grown to over 1,600 while
hosting worship services
in English, Mandarin and
Cantonese.
Rev.
Chung
graduated
from Southeast Asia Bible
Seminary in Indonesia before
coming to the United States
in 1966 to further his studies.
After arriving in America he
graduated with a B.A. from
Azusa Pacific College, a Master’s Degree from California State
University, and PhD from California Graduate School of Theology.
In 1976, Rev. Chung returned to the United States and began
serving as the Senior Pastor of the Mandarin Baptist Church of
Los Angeles. He has been active in California Southern Baptist
Convention life, and served as a member of the Convention’s
Executive Board. Presently, he serves as Acting President of the
Truth Theological Baptist Seminary.
Rev. Chung has been married to Dorcus since 1963. They have 4
children and 11 grandchildren. His son, Francis Chung, serves as
pastor of the English speaking congregation at Mandarin Baptist
Church.
Attorney’s Tips For Spring
Cleaning
W
ith tax day coming up, you might already be finished
with your taxes, or you will be soon. Use the momentum to get
organized and do some spring cleaning in other areas of your
life:
1. Adjust your income tax withholding.
Did you file your taxes? If you are getting a big refund, you might
want to decrease the amount of income that your employer
withholds from your paycheck throughout the year and increase
what you get each paycheck. If you paid a bigger tax payment
than you expected, you can adjust your withholding so you pay
more throughout the year and not try to come up with a big
difference next April.
2. Check your insurance coverage.
Many people think about insurance coverage only when
something goes wrong and they need it. A lot can change in a
year–maybe you want to increase (or decrease) your coverage or
shop around and make sure you’re still getting the best deal. It’s
smart to review your insurance coverage at least once a year.
3. Review and update your estate plan.
A great estate plan in 2007 might not be a great estate plan in
2014. Make sure you review your Will, Power of Attorney, Living
Will, and Trust documents every year so you’re prepared for any
new laws that have passed recently
4. Look at retirement savings progress.
This is a great time to review how much you saved last year and
overall, and see if your savings plan needs to be adjusted. 5. Get a family lawyer.
Having a lawyer who you know and trust can make all the
difference when you come up against a legal issue.
A Note to
Trust Beneficiaries
T
he Trust Operations Department has mailed
copies of the tax return forms for the Beneficiary’s
Schedule K-1, to the appropriate beneficiaries for use
in reporting trust income. Please call us if you have
not received your Schedule K-1 at (559) 323-3532.
Gift Annuities Give Back
O
ne of the best kept “charitable investing” secrets is
the gift annuity. A gift annuity is both a gift to charity and
a stream of income for life to the donor.
The Foundation is the only California Southern Baptist
entity licensed by the California Insurance Commissioner
to issue gift annuities in California. When you fund a gift
annuity the Foundation makes a financial commitment to
stand behind every payment that you receive for the rest of
your life. Then at your death the
balance in the annuity account
goes to the Lord’s work.
Here are our current gift annuity
rates.
Age 60
4.4%
Age 70
5.1%
Age 80
6.8%
Age 90
9.0%
Call today and start receiving
your annuity payments within
60 days!
Brenda Batey, Director
of Trust Operations
visiting with Wuanita
Adamson, CBF Trustor
CBF Meeting Needs in
Churches Statewide
W
e are pleased to announce that we have engaged four
Area Representatives to assist us with our work. We have been
finding it more and more difficult to respond to all the requests
for information and assistance that we receive with our limited
staff. California is a big state, and we have churches in every
corner of it.
So, we have enlisted Bruce Hitchcock
(Temecula and Riverside) to head up
a team of Area Reps that now includes
Ralph Neighbour (Los Angeles), Ron
Harvey (Bakersfield), and Steve Brown
(Sacramento). These men will help us
better stay in touch with our churches,
pastors, DOMs, and trustors like you.
Bruce Hitchcock,
If you have questions about our work,
Area Representative
are interested in a charitable gift annuity
or charitable remainder trust, would like to schedule an estate
seminar, want someone to preach on stewardship or speak at a
seniors event, or need help with estate planning, trust or probate
matters, just give us or one of them a call.
These Area Reps will be enlisting volunteers to serve as Friends
of the Foundation in the days ahead. A Friend of the Foundation
is an individual with some business expertise who would like to
help us connect better with his or her church and its members.
We will be enlisting and training these Friends of the Foundation
in the months ahead.
Jacques Retires
from Foundation
G
eorge Jacques, Sr. Vice
President of Trust Services at
the Foundation, retired as of
December 31, 2013. George came
to the Foundation in December of
2000 and has been of invaluable
service to CBF supervising our Trust Department. George is an
expert on UPMIFA and Trust Law, which are the rules that govern
trust documents.
Concerned your issue of
Pathways might get lost
in the mail?
Y
ou can do your part in “going green” by helping the
Foundation conserve resources by providing us with your email
address so you may receive future editions of Pathways and
other informational releases delivered right to your inbox. Visit
our website at www.californiabf.org/contact, fill in your name and
email address and type in “Go Green” in the message box.
He was also responsible for establishing many trust accounts,
assisting clients in establishing charitable remainder unitrusts with
appreciated property to minimize the capital gains taxes paid.
He worked with our investment managers and Board committees
to update investment guidelines and write policies for the trust
department. He is a
very detailed, articulate
person who maintains a
high level of knowledge
and experience in trust
management.
You may also call us toll free at 888-607-7494 and provide your
information over the phone. And once you do start receiving
Pathways online, please feel free to forward it to your friends!
Cruise to Alaska with Golden Gate!
JOIN US FOR A 7-DAY ALASKA CRUISE, AUGUST 1-8, 2014.
PORTS OF CALL: Ketchikan, Alaska; Tracy Arm Fjord, Alaska; Juneau, Alaska;
Alaska Inside Passage; Skagway, Alaska; and Victoria, British Columbia.
“Seasons of a Leader’s Life”
www.ggbtscruise.com
GUEST SPEAKERS:
Jeff Iorg Golden Gate Seminary President
Ben Skaug Golden Gate Vice President for
Institutional Advancement
Phil Kell President, California Baptist Foundation
To reserve your space, please contact Sovereign at
877-768-2784 ext. 108 or visit: www.ggbtscruise.com
For questions: [email protected]
Florida Seller of Travel #ST35876
To participate in this event, all cruise, hotel and bus reservations
must be made through Sovereign
Although he has moved
to Idaho to be near
grandchildren, he will
continue to work with
CBF as a Trust Advisor.
Non-Profit
Organization
U.S. Postage
PAID
Permit No. 1893
Fresno, CA
7120 N. Whitney Avenue, Suite 105
Fresno, California 93720-0153
Return Service Requested
M
any people who work with the
Foundation seek to maximize and protect
their inheritance, and impact the world
for Christ today, tomorrow and forever.
Such goals are best implemented through
structured asset-protection for family and
estate planning vehicles that both minimize
or eliminate taxes and provide for God’s
work for future generations. Don & Glenda McAlpine discovered a terrific
way to meet their goals: the charitable remainder trust (CRT). Nearly a
decade ago, Don faced retirement and part of his plan was to sell his
business building. Having a structured plan for family squared away in
their living trust, the McAlpines faced a federal and state capital gain
upon sale, as much as 20% of the property value.
The McAlpines sought professional help and the CRT presented a perfect
solution. The property was conveyed to the CRT, which provided both a
nice income tax deduction and the ability to sell the property completely
tax free. Thus, 100% of the sales proceeds were invested, which in turn
provided the couple with a stable source of income for their lifetimes.
Now that Don has passed, his plan continues to provide an assetprotected stream of income to keep Glenda in the lifestyle to which she
and Don had earned from over half a century of hard work. And when
the Lord calls Glenda home, the CRT assets will go to work for her church
and other ministries through endowments, funding Baptist work and
blessing future generations. “Well done my good and faithful servant.”