7¤ ¤
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¤ I want to spend my
life mending broken people ¤
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¤ I want to spend
my life removing pain ¤
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¤ Lord let my words
heal a heart that hurts ¤
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¤ I want to spend my
life mending broken people ¤
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¤ ¤
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Hello friends, Welcome to
3ABN today. I'm John Lomacang.
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Thank you for taking the time
to join us for a program that
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you probably didn't see coming
but then when it's over you'll
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say I'm so glad I took the time
to stop and listen in. It is
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about the largest responsibility
we have as followers of Christ.
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Say the word "Stewardship." What
does that mean to each of us?
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How do we fit stewardship
into our lives? You know we are
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accountable for four areas
in stewardship: Time, Talent,
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Testimony and Treasure. And
we're going to talk about that
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today because we live in a world
of unpredictable events. Things
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happen that don't always fit
into our time table and we can
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make wise decisions about
stewardship so that when the
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future comes we can greet
it with assurance and God's
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blessing. Well today I have two
gentlemen who are not strangers
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to me. Both are church members
and both work for 3ABN and first
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of all, we have the director
of planned giving and trust
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services Jeff Doerr.
Good to have you here Jeff.
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Thank you, Pastor. It's good to
be here and it's wonderful to be
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able to have this conversation
around the table today because
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with trust services, we do not
do direct mailing. We do not do
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cold calling. We just take
and respond to inquiries to our
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department. So I'm glad to be
able to have the opportunity to
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talk to our 3ABN family
and explain to them some of the
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services that we offer and that
they can take advantage of in
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their stewardship and in their
planned giving through 3ABN
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helping to advance the gospel.
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Okay, that's right and we're
going to get into more detail
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about that in just a moment.
But to my right, fun guy, Jason
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Bergmann, CFO at 3ABN.
Good to have you, Jason.
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It's good to be here and
it's always good to talk about
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stewardship and money. You know
they say when they see me, Oh
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you're the guy, you're the bean
counter. And I usually say well
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I'm better than
that, I'm a bean manager.
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Okay, I like that. So
beans are in there somewhere.
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That's right, that's right.
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Well good to have you here.
You've been here how long now?
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Four and a half
years. (Okay) Yep.
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Well Jeff tell them how
long you've been here about.
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Well at 3ABN not quite 2 years.
But coming to church here about
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19 years.
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Okay, that's why we met you a
long time ago, before we moved
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into our new building.
(Absolutely) You and Charletta
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are a blessing to our church.
(Praise the Lord) We always know
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when you go to our church. You
always match somehow and it's
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She does a good
job of dressing me.
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That's right. You're a native of
Southern Illinois. Where do you
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live?
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Yes we live in Vergennes which
is about a 45-minute drive from
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3ABN. So.
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And there's another side to you.
Talk about that. You are not
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only a southern Illinoisan but
you're involved in a couple of
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other areas that
are very interesting.
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Yes, I have been an auctioneer
for almost my entire adult life
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as well as a real estate broker
and we also own and manage a
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farm. So I have
many hats that I wear.
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Okay. Wow, you sure do. Good
to have you here. (Thank you)
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All your gifts have been a
blessing thus far to the Lord's
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work as well as to our
church. Thank you for that.
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(Praise the Lord) And where
are you from Jason, originally?
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New Jersey. I'm a New Jersey boy
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Absolutely. (Okay) It's a lot
of fun and after that went to
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Andrews University so got my
education from there. It's been
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a whirlwind of different
conferences around the United
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States.
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And you also work for the
world church. (Correct) Yeah.
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It was a good experience working
for the General Conference.
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Wow, wow. So you have a lot of
financial background, accounting
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and you've been a
blessing I hear, here at 3ABN.
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You know I give all
the credit to Jesus.
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Amen. Well thank you for
the part that you play as far as
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your education and being willing
to allow the Lord to use that.
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We're talking about trust
services planned giving. First
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of all let's find out, what is
trust services. I'll just kind
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of throw that out there. Jeff.
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Since I'll begin with y'all.
Well trust services we take and
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have a variety of different
products that we have. We have
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different...Some trusts are
revocable, some are irrevocable
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We have CRUTs and we have
where you can just have a self-
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administered trust. We have cash
trust basically like a brokerage
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account if you would have it
at another stock brokerage firm.
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But we also take and are the
trustee for these people, most
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of the people and we go out
after their passing when the
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trust matures, we go out and
assist in closing out the trust.
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Which means liquidating all the
assets, sell the real estate,
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sell the personal property,
divide that up. Then also we
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also have a service where we
take and manage or assist people
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in their senior years if they're
in assisted living. They take
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their funds, they have
them in our cash trust.
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Each month the assisted living
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sends us the bill, the invoice,
and then we pay their monthly
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expenses. So the family doesn't
have to be burdened with that.
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Or if they don't have any family
then the person that's in the
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assisted living does not have to
take and worry with that. They
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don't have to write any checks.
It's taken care of for them
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every month.
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Well, I like that word trust.
Because there's a lot of trust
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needed and it's good to
have a Christian organization
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involved in that and
3ABN's been a blessing in that
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particular. What do you
want to add to that Jason?
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So you know I look at trust
services in two ways. Number one
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I think you said it well that
they're trusting us with their
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resources and it's our
responsibility to help them
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through their life cycle, to
be able to use the resources and
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also to potentially leaving a
legacy. And our trust services
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department and Jeff does an
awesome job in making sure that
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when someone comes in and says
I have this type of estate, I
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would to do these type of things
with it. Help me get to that
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ending.
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You know that seems...You want
to add something to that Jeff?
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Well you know like what Jason
was saying, trust services. You
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have to have trust in the
organization or the person that
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is handling your trust whether
it is you executor or your
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trustee. If you don't after
you've passed you're relying on
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them to follow your wishes and
you can rest assured that here
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3ABN whatever you have
documented as your wishes will
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be followed to the T. (Amen)
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And you know what's great about
this too, since you know writing
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a trust or a will or an annuity
or CRUT with 3ABN. 3ABN is going
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to be here until Jesus comes so
there's no need to change this
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organization. It's going to
continue for a number of years.
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You know I talked with someone
recently. They said well I did
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it with so and so but I don't
know. They're getting older
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I don't know what's going to
happen. (Right) So doing it with
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3ABN whether I'm here or whether
Jeff's here, the organization is
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not going to change. It's going
to continue with the objectives
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that you have shared with us.
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That's good because a lot of
times we choose an executor or
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somebody who's...or a trustee
and before something happens
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And the person is left caught
holding the bag or they don't
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know what to do.
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Exactly. Yes, we just had
one that they had their executor
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named, they had their successor
named and both of those
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predeceased the person. So it
fell back to the third person in
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line.
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Wow, wow. And it's important.
A lot of times people think
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about well I don't really care
what happens to my product when
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I die, or my finances. Many of
you probably don't really think
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that through very well because
what it does it cuts your family
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completely out and if you don't
make any decisions about the
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well-being or your property
or your finances well the
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government wouldn't
hesitate to step in.
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Oh well, they're happy
too, they'll be happy too.
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They won't hesitate. I remember
helping someone out and you know
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The banker said the day
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that they die if
there are no plans the
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government steps in immediately.
And we want to make sure as it
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says in the Bible It's appointed
unto men...It's important that
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as followers of Christ that
we be found faithful. I've been
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here 19 years and I've seen the
trajectory of trust services as
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you said used to the Leonard
Westfall. And you remember
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Leonard Westfall. (Yes) Very
enthusiastic, resilient German
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man who always held things
together. He was so excited to
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have...But you know
unfortunately, he passed away.
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But then after that, I don't
know who we had after that.
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But then here you are now
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I'm going to talk what's
happening today. Now let me just
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ask the question: What does
a person need to do prior to
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investing in
3ABN planned giving?
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Well most people would think I
need money. And that's important
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But I think the most important
thing is you need to have
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charitable intent. You need
to have in your heart the desire
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to take and be benevolent, to
take and want to take and spread
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the gospel, to help in funding
the spread of the gospel and
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with 3ABN you're not only just
helping 3ABN, 3ABN is helping
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numerous ministries as
they broadcast. We know they
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broadcast several different
ministries and assist them. So
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when you're supporting 3ABN
you're supporting a whole number
00:10:00.20\00:10:04.20
of ministries all across the
Seventh-day Adventist. So that
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is very important in my opinion.
Money is important because we
00:10:08.77\00:10:11.71
have to take and be able
to support and the support is
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financially. So yes, be
benevolent and then take and
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have the finances. Real
property. If you have property
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you can keep the faith and
consider a trust very much so.
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Who does it go to? Jason.
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So I think know what you want
to do before you come to us. I
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think that's really important.
I think Jeff said it well that
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you know this is a nonprofit
organization and we're here to
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serve. And it is a win/win
situation for those that want
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to partner with 3ABN. And this
is their resources that you know
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the Lord has blessed them for
many, many years and now they're
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entrusting it to 3ABN to
manage their estate accordingly.
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Yeah, because we've visited
people around the world and
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they've said as they're getting
older. Some people don't wait
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till they're really older.
You know the myth is you have to
00:11:07.60\00:11:12.83
wait until you're at a certain
point in life where you're
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barely hanging on to make a will
That's not necessary. As long as
00:11:14.24\00:11:18.31
you're breathing you should
have a will. What do you think?
00:11:18.34\00:11:19.71
Well we are in our fourth
revision of our will. And as a
00:11:19.74\00:11:24.61
young family starts and they
have children, they should have
00:11:24.65\00:11:27.28
a will because you have a very
valuable asset that you have
00:11:27.32\00:11:30.65
just created and that's a child.
And you need to take and make
00:11:30.69\00:11:33.49
plans for that child if
something happens to you. So
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it's important for young people
to have a will to take and put
00:11:36.96\00:11:40.10
something in place for
that child. And then as time
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progresses and your life changes
we've adjusted our like I said
00:11:43.70\00:11:47.67
in the fourth revision. So you
shouldn't take and wait till you
00:11:47.70\00:11:50.57
have one foot in the grave and
one on a banana peel. You need
00:11:50.61\00:11:53.94
to be making preparations. And
I run into people that put more
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time in planning for a
meal than they do planning
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for their estate
00:12:01.62\00:12:02.95
because they plan for a meal
but they take and die without
00:12:02.98\00:12:06.15
planning for their
estate when they've passed.
00:12:06.19\00:12:08.09
That's a very important point.
When your children, if anything
00:12:08.12\00:12:11.49
happened to the parents. We've
heard some horrible stories
00:12:11.53\00:12:16.20
where parents...Oh I don't want
to go into the news reports but
00:12:16.23\00:12:19.27
the children were left without
parents, see. And then all of a
00:12:19.30\00:12:22.17
sudden family members step in
and if things are not done right
00:12:22.20\00:12:26.01
if the family members' hearts
are not in the right place it
00:12:26.04\00:12:27.74
(Yeah) could be worse after the
parents have passed away. Do you
00:12:27.78\00:12:31.28
want to add
anything to that, Jason?
00:12:31.31\00:12:32.65
You know some people they think
that when they create a will or
00:12:32.68\00:12:35.52
trust that they're going to die.
You know that it, it's a thought
00:12:35.55\00:12:42.02
but when you look at a trust or
a will it has its own life cycle
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And Jeff and I have been talking
about these type of instruments
00:12:45.43\00:12:48.83
and what they do and what
they're able to do for not only
00:12:48.86\00:12:55.47
the person who's creating it
but their legacy after they pass
00:12:55.50\00:12:59.57
away. So you know it's good that
we think ahead while we have a
00:12:59.61\00:13:05.38
sound mind and while we know
what we want to do. It's not the
00:13:05.41\00:13:12.39
wisest thing to just let it
go because we don't know what's
00:13:12.42\00:13:15.69
going to happen tomorrow. We
don't know how life is going to
00:13:15.72\00:13:19.73
progress and while we have that
time we need to take advantage
00:13:19.76\00:13:24.83
of that.
00:13:24.87\00:13:26.20
That's right. So when we think
about planning talk about the
00:13:26.23\00:13:29.80
trust versus the annuity.
Why would the trust be more
00:13:29.84\00:13:33.31
important and
what's the difference?
00:13:33.34\00:13:34.68
So yeah. I have to...I like
answering that question. So, you
00:13:34.71\00:13:38.68
know, trust it's a great
instrument because it allows for
00:13:38.71\00:13:42.08
a number of things. Number one:
You can use a trust to add to
00:13:42.12\00:13:48.09
your estate. It's kind of like
adding to a reserve. And as you
00:13:48.12\00:13:53.90
add to that reserve you
know when you're younger you're
00:13:53.93\00:13:57.17
building things. When you get to
your middle age you think what
00:13:57.20\00:13:59.67
do I need, what do I not need.
When you get older you're like
00:13:59.70\00:14:02.70
how much can I get rid of
because you don't need all these
00:14:02.74\00:14:06.04
things. (That's true) Well
a trust is like that as well.
00:14:06.07\00:14:08.31
As you're getting...and I just
created a trust just recently
00:14:08.34\00:14:12.88
and right now I'm in the
building mode. Once you get
00:14:12.91\00:14:17.12
older you realize that okay that
I know what I need. Now I need
00:14:17.15\00:14:21.26
to think about what is the
income I need to generate in
00:14:21.29\00:14:24.59
in order for me to live after I
retire? And then from that point
00:14:24.63\00:14:30.00
you're looking at I need
help. So you know 3ABN we have a
00:14:30.03\00:14:36.00
service with our trust
department where if you have a
00:14:36.04\00:14:39.14
trust with us and you need
to have bills paid for because
00:14:39.17\00:14:42.01
you're not able to pay the bills
3ABN trust services can pay
00:14:42.04\00:14:45.81
those bills. (Oh, I like
that) And then at the end
00:14:45.85\00:14:50.05
you know of a life
00:14:50.09\00:14:51.42
cycle of a trust we look at okay
now they're getting into the
00:14:51.45\00:14:56.99
last years of their life.
They're not able to take care of
00:14:57.03\00:15:00.73
themselves, they need to go into
another facility, well who's
00:15:00.76\00:15:04.27
going to be helping them with
that? You know if we don't have
00:15:04.30\00:15:06.94
relatives, we don't have family
members that can help us well
00:15:06.97\00:15:09.70
the trust department will be
able to assist find an assisted
00:15:09.74\00:15:14.71
living and then be able to not
only pay the bills but make sure
00:15:14.74\00:15:18.38
that everything is going
according to plan based on what
00:15:18.41\00:15:21.82
the trustor wanted.
00:15:21.85\00:15:24.45
Okay and that's the difference
the advantage over an annuity.
00:15:24.49\00:15:26.76
So if I may add a couple
more things. So a trust is great
00:15:26.79\00:15:31.49
because you set up a trust and
it's revocable which means at
00:15:31.53\00:15:35.66
any time life changes you
can take the money out. (Okay)
00:15:35.70\00:15:38.63
Whereas an annuity it's locked
in. It's been basically contract
00:15:38.67\00:15:43.64
and the reasons for that in
annuity is that the contract
00:15:43.67\00:15:48.08
says that based on your age
based on the life expectancy
00:15:48.11\00:15:50.95
and based on the rates that are
given to us by the association
00:15:50.98\00:15:58.62
that deals with annuities
that rate is what we give to the
00:15:58.65\00:16:05.46
annuity for the rest of their
life. (Okay) And that can't
00:16:05.49\00:16:08.63
change. So there's advantages
and disadvantages of a trust
00:16:08.66\00:16:12.80
versus annuity but the great
advantage of annuity is it's
00:16:12.83\00:16:16.77
like a paycheck. Every month
or every quarter when you get
00:16:16.81\00:16:20.24
that payment it's going to be
the same thing for the rest of
00:16:20.28\00:16:23.51
your life. So you have
consistency and what we've found
00:16:23.55\00:16:26.58
in managing trusts and annuities
is that people who prepare they
00:16:26.61\00:16:32.22
actually live longer because
they have that peace of mind.
00:16:32.25\00:16:35.29
Less worry.
00:16:35.32\00:16:37.59
Right less worry. The
interesting thing about a trust
00:16:37.63\00:16:40.10
is you can still add to it and
you can take it out so if you
00:16:40.13\00:16:45.60
have something that you didn't
think of and you need some money
00:16:45.63\00:16:50.04
you can ask, hey you know I need
some money. Can you take out and
00:16:50.07\00:16:53.94
send that to me. And we're very
quick with it and we built a
00:16:53.98\00:16:59.68
program to make it even faster
for us to manage. So those are
00:16:59.71\00:17:02.78
the things. A trust, it
grows and it continues to grow
00:17:02.82\00:17:06.89
where an annuity is
an irrevocable instrument
00:17:06.92\00:17:10.63
it's very static but for the
rest of a life it gives you a
00:17:10.66\00:17:16.97
payment for the rest of
your life. Now I will say that a
00:17:17.00\00:17:21.40
trust. You know we have what's
called a cash trust and that's
00:17:21.44\00:17:26.11
worked very well. We have a
really good interest rate that
00:17:26.14\00:17:29.68
we give our trustors and they
really like it and they like it
00:17:29.71\00:17:34.55
so much that they add to
it. (Okay) And that's really
00:17:34.58\00:17:37.65
important for a trust because
a will you can't add to it. You
00:17:37.69\00:17:41.02
can create a new one but you
can't add to it where a trust
00:17:41.06\00:17:44.69
you can. So that can keep
growing and growing and your
00:17:44.73\00:17:48.70
interest payment grows. It also
has a nice instrument while the
00:17:48.73\00:17:54.10
market is going up and that is
it has a market value adjustment
00:17:54.14\00:17:57.91
which means when the market is
going up then the trust goes up
00:17:57.94\00:18:01.74
Now if the market is going down
and sometimes it does go down
00:18:01.78\00:18:06.48
and then the trust goes down a
little bit. However you have to
00:18:06.51\00:18:12.42
look at a trust being a long
term instrument. (Okay) This is
00:18:12.45\00:18:15.96
not a short term, it's not
a savings account. It's a long
00:18:15.99\00:18:19.69
term instrument and it does
a lot of things. So you have to
00:18:19.73\00:18:22.90
think about, do you want a
static payment for the rest of
00:18:22.93\00:18:26.37
your life or do you want to be
able to grow this trust and be
00:18:26.40\00:18:30.71
able to allow it to move with a
lot of things in the trust. What
00:18:30.74\00:18:35.54
happens when you die? Where does
the money go? How do you want it
00:18:35.58\00:18:39.71
designated out when you pass
away. So all these things in a
00:18:39.75\00:18:43.15
trust. It's a great instrument.
It can grow with you and it has
00:18:43.18\00:18:47.96
that life cycle
where it grows over time.
00:18:47.99\00:18:49.76
It's trustworthy. (Very)
00:18:49.79\00:18:52.66
The annuity does not have a
hedge against inflation where
00:18:52.69\00:18:57.53
the cash trust does. So
the annuity you have safety and
00:18:57.57\00:19:01.64
security because you're going to
get the same amount every month
00:19:01.67\00:19:03.74
for as long as you live and
a lot of the annuities are two
00:19:03.77\00:19:08.34
life, husband and wife,
and it goes to the life of the
00:19:08.38\00:19:11.48
surviving spouse. So if
the husband dies first the wife
00:19:11.51\00:19:13.72
continues to get the annuity
payment until the end of her
00:19:13.75\00:19:16.58
life. And that does not hedge
against inflation. But then the
00:19:16.62\00:19:20.49
cash trust does hedge against
inflation but it does not have a
00:19:20.52\00:19:23.86
guaranteed interest
rate so you have fluctuation.
00:19:23.89\00:19:28.53
Wow. So what if I had real
estate in my trust. Can I sell
00:19:28.56\00:19:33.30
it and if yes, if no
why not, if yes when.
00:19:33.34\00:19:37.14
No. If you have real estate in
your trust you can take and sell
00:19:37.17\00:19:39.67
it at any time that you'd like.
You can take and if you want to
00:19:39.71\00:19:42.74
take and relocate you can take
your property you have in trust
00:19:42.78\00:19:45.41
you can sell it, move to your
new location, put that property
00:19:45.45\00:19:49.12
in the trust. It's very fluid,
very easy to do and we do it
00:19:49.15\00:19:53.56
quite frequently. And something
we've been trying to talk about
00:19:53.59\00:19:56.73
a little bit here at the table
is a will and a trust both as
00:19:56.76\00:20:02.13
long as you are alive and
of sound mind can be changed.
00:20:02.16\00:20:05.77
You're not stuck to the
terms of either one until you
00:20:05.80\00:20:09.90
become either
incompetent or you pass.
00:20:09.94\00:20:11.77
Wow I like that. That's true.
You know you could upgrade.
00:20:11.81\00:20:15.04
Circumstances might change.
Somebody in your family may pass
00:20:15.08\00:20:21.08
away and give you a large
inheritance. Wait a minute. Now
00:20:21.12\00:20:24.02
we have a lot more funds to
deal with. We want to include it
00:20:24.05\00:20:27.22
in our trust or in our annuity.
But in our will in our plan just
00:20:27.26\00:20:30.69
in case something happens.
(Exactly) I mean these are the
00:20:30.73\00:20:33.03
unpredictables of life that are
expected. These are the expected
00:20:33.06\00:20:36.36
things that we must plan
for. And if we don't plan for it
00:20:36.40\00:20:39.53
somebody already
has a plan for it.
00:20:39.57\00:20:42.34
And you know when you
think about planning it's really
00:20:42.37\00:20:46.34
helpful because we don't know
what's going to happen tomorrow.
00:20:46.37\00:20:48.91
You know I tell my wife you know
if I get hit by a bus you know
00:20:48.94\00:20:53.15
you'll take care of these
certain things and you know you
00:20:53.18\00:20:58.45
never know whose fault it was.
You know you have to look at
00:20:58.49\00:21:02.46
these instruments which are
there to guide the assets that
00:21:02.49\00:21:09.76
the Lord has given you and
the blessings that the Lord has
00:21:09.80\00:21:12.23
given you.
00:21:12.27\00:21:13.60
So let me talk about two things
you mentioned. You mentioned
00:21:13.64\00:21:15.70
this word CRUT. But it's an
acronym. What does that mean?
00:21:15.74\00:21:18.54
Charitable Remainder Unitrust.
00:21:18.57\00:21:20.31
Charitable Remainder Unitrust.
Explain that a little bit
00:21:20.34\00:21:24.61
because it might be Greek to
somebody who's listening to the
00:21:24.65\00:21:27.52
program.
00:21:27.55\00:21:28.88
Yeah so as you were talking
about selling property, I just
00:21:28.92\00:21:35.79
talked with a gentleman who
has a farm and a very big farm.
00:21:35.82\00:21:37.23
And he wants to avoid
capital gains. Well a charitable
00:21:37.26\00:21:42.33
remainder unitrust does
just that. It's like the perfect
00:21:42.36\00:21:46.57
instrument to be able to use
that asset, to put it into this
00:21:46.60\00:21:52.17
instrument and the way it works
is the property is given to 3ABN
00:21:52.21\00:21:59.85
organization. We put it into a
CRUT. Then we give a percentage
00:21:59.88\00:22:03.79
back every year until that
trustor, that person, dies.
00:22:03.82\00:22:08.49
And it's usually like five
percent and for the rest of
00:22:08.52\00:22:13.86
their life they get a five
percent based on the value.
00:22:13.90\00:22:15.96
And that value get revalued
every year. So if you have a
00:22:16.00\00:22:22.87
million dollar piece of property
and your cost basis is like
00:22:22.90\00:22:26.68
$100,000 that means that you're
going to be paying capital gains
00:22:26.71\00:22:30.35
on 90 percent of that, $900,000.
Well that's a lot of money.
00:22:30.38\00:22:35.45
But if you create a CRUT with it
a hundred percent goes into this
00:22:35.48\00:22:41.72
CRUT and then the individual
gets five percent for the rest
00:22:41.76\00:22:44.19
of their life. It's a great
instrument (way of protection)
00:22:44.23\00:22:48.16
It's kind of like an annuity.
It's an irrevocable instrument
00:22:48.20\00:22:51.87
but it gives you a payment for
the rest of your life as well.
00:22:51.90\00:22:55.37
It operates while you're alive.
00:22:55.40\00:22:56.74
Correct. And it has
the inflation that...
00:22:56.77\00:22:58.71
It earns interest
while it's in the CRUT.
00:22:58.74\00:23:01.54
And it, yep, it earns interest
and it grows and it's a great
00:23:01.58\00:23:06.72
instrument for those who have
appreciated property that they
00:23:06.75\00:23:10.05
want to sell but they really
don't want to pay capital gains.
00:23:10.09\00:23:12.72
I like the scenario. I got
just find the million dollars
00:23:12.75\00:23:14.66
somewhere _. I love the
way that you explained that.
00:23:14.69\00:23:18.09
That's really good because it
gives me some protection whereas
00:23:18.13\00:23:21.90
the other way oh well here
comes the next tax year the next
00:23:21.93\00:23:24.80
tax year. What happens?
00:23:24.83\00:23:26.30
Exactly. Yes after you
pay the taxes it's gone. So on
00:23:26.33\00:23:32.84
appreciated property a CRUT is
a tremendous way to...We want to
00:23:32.87\00:23:38.01
pay our fair share of taxes that
we are responsible for paying.
00:23:38.05\00:23:39.38
The Bible tells us to do that.
But if there is a way that we
00:23:39.41\00:23:42.85
can benefit the ministry and
benefit ourself without paying
00:23:42.88\00:23:46.82
that extra tax I think we
ought to take advantage of that.
00:23:46.86\00:23:49.39
A charitable remainder unitrust.
00:23:49.42\00:23:51.03
And the great thing which I
didn't share is at the end when
00:23:51.06\00:23:55.10
the trustor passes away then it
goes to the ministry for its use
00:23:55.13\00:23:58.30
Okay all right. That's why
it's important to maintain the
00:23:58.33\00:24:01.80
strength of it rather than just
have taxes eat it up. What about
00:24:01.84\00:24:05.94
a SAT? S-A-T.
00:24:05.97\00:24:07.31
A self-administered trust.
(Okay) And those can be as
00:24:07.34\00:24:10.41
inclusive or as limited as you
would like them to be. Most of
00:24:10.45\00:24:14.02
our SATs are people that have a
home, the residence and they put
00:24:14.05\00:24:18.12
it in their self-administered
trust, that's your real estate
00:24:18.15\00:24:21.86
where they can take and put
it in there and they're still in
00:24:21.89\00:24:24.93
control of it, they still
live there, they still pay their
00:24:24.96\00:24:26.80
taxes, their insurance and
everything but it has a set plan
00:24:26.83\00:24:30.57
that at some point in time in
history whenever they pass how
00:24:30.60\00:24:34.70
that is going to be, those funds
that property will turn into
00:24:34.74\00:24:39.31
cash and those funds will be
distributed. And you can take
00:24:39.34\00:24:42.84
and put as much into a trust
as you'd like or you can put as
00:24:42.88\00:24:46.58
little as you would like.
But most people put their real
00:24:46.61\00:24:49.78
estate and then they'll put some
personal property in them. One
00:24:49.82\00:24:51.92
thing that our trust that
we need to make sure people
00:24:51.95\00:24:56.06
understand because I get calls
on this as well, our trusts do
00:24:56.09\00:24:57.96
not protect you against the
nursing home. The government and
00:24:57.99\00:25:02.53
the medical bills are still
going to be able to access your
00:25:02.56\00:25:05.77
funds whether you have it in a
trust or you just have it in the
00:25:05.80\00:25:08.60
bank, so you need
to be aware of that.
00:25:08.64\00:25:10.81
Okay, so when is the best time
to get a trust, annuity, a SAT
00:25:10.84\00:25:14.51
or a CRUT.
00:25:14.54\00:25:16.68
Well an annuity, I'll start and
then let Jason finish up annuity
00:25:16.71\00:25:19.55
you've got to be at least
65 years old. So we're getting
00:25:19.58\00:25:22.58
close to that point.
00:25:22.62\00:25:23.95
Is that like a
tax deferred annuity?
00:25:23.99\00:25:25.32
It is. There's tax benefit to
the annuity yes and annuity is
00:25:25.35\00:25:28.79
is a guaranteed interest rate
for your life. (Okay) So that
00:25:28.82\00:25:33.33
you have to wait to 65. They
get more advantageous from 70 on
00:25:33.36\00:25:37.23
and you can also have a deferred
annuity where someone younger
00:25:37.27\00:25:42.00
than 65, they say well I've
got this inheritance that I just
00:25:42.04\00:25:44.54
received and I want to protect
it, they can put it into an
00:25:44.57\00:25:47.54
annuity, a deferred annuity that
when they become 65 it's based
00:25:47.58\00:25:51.31
their age prediction at 65.
They'll start withdrawing their
00:25:51.35\00:25:56.08
money at 65.
00:25:56.12\00:25:57.45
And then it's taxable then.
00:25:57.49\00:25:58.82
Part of it. Not
all of it. (Okay)
00:25:58.85\00:26:00.39
Yeah because the annuity works
it's designed that 50% goes back
00:26:00.42\00:26:04.83
to your organization so during
the life 3ABN invests the money
00:26:04.86\00:26:09.36
We make sure that it's
keeping up with inflation and we
00:26:09.40\00:26:12.70
try to manage the money so at
the end of life something left
00:26:12.73\00:26:17.01
for the organization.
00:26:17.04\00:26:18.54
Well Jason when does 3ABN get
to use the money in a cash trust
00:26:18.57\00:26:22.14
or an annuity.
00:26:22.18\00:26:23.51
So that's great. So in a
cash trust there's multiple
00:26:23.55\00:26:25.85
scenarios to this. So in a cash
trust there are two ways that
00:26:25.88\00:26:30.92
3ABN can benefit. Number one:
If a trustor says you know what
00:26:30.95\00:26:36.09
I like what's going on with 3ABN
and I enjoy what you're doing
00:26:36.12\00:26:41.43
I love the focus. I want to give
a portion of my trust right now
00:26:41.46\00:26:46.63
to 3ABN. That is one way.
The second way is when they pass
00:26:46.67\00:26:52.67
away. So usually when the
trust is created they have
00:26:52.71\00:26:56.14
beneficiaries when they pass
away. And of course 3ABN when
00:26:56.18\00:27:00.35
we create the trust you don't
have to pay any taxes, I'm sorry
00:27:00.38\00:27:04.85
any fees or any other types of
expenses or transferring money
00:27:04.89\00:27:13.50
back and forth. We take care
of that and also we pay for the
00:27:13.53\00:27:16.00
attorney fees to create the
document. So there are no fees
00:27:16.03\00:27:20.40
but we manage it, we take care
of it so at the time of death
00:27:20.44\00:27:25.47
that's when we distribute
according to the trust
00:27:25.51\00:27:28.54
instrument. As far as annuities
you know we look at the annuity
00:27:28.58\00:27:32.55
and base whatever is left from
that annuity. Then 3ABN takes
00:27:32.58\00:27:36.18
that and uses it for its
ministry. So we do have a
00:27:36.22\00:27:41.19
situation that we didn't talk
about and that's on a CRUT, we
00:27:41.22\00:27:45.36
had a CRUT recently where a
gentleman created a CRUT with
00:27:45.39\00:27:49.56
some property and later on he
got a little older and he said
00:27:49.60\00:27:54.20
you know what I don't need this
money any more and so I just
00:27:54.24\00:27:58.21
want to give that CRUT up and
3ABN you can just take it. So at
00:27:58.24\00:28:02.58
that point we were able to
dilute the CRUT and we were able
00:28:02.61\00:28:07.15
to use it to the ministry and
praise the Lord because it was
00:28:07.18\00:28:09.52
the perfect time
that we needed the funds.
00:28:09.55\00:28:12.12
Wow. It was all in a CRUT. You
had the CRUT and got you out of
00:28:12.15\00:28:15.82
a rut.
00:28:15.86\00:28:17.19
That's right, that's right.
00:28:17.23\00:28:18.56
You know I've thought about
that one yet. Yes. Now let me
00:28:18.59\00:28:20.33
throw another question out
unless you want to add something
00:28:20.36\00:28:21.96
to that. (No) Now what's
the life cycle of a cash trust?
00:28:22.00\00:28:26.70
Because there are perceptions
and then there are facts.
00:28:26.74\00:28:29.44
Okay you know so there's a
couple of these perceptions that
00:28:29.47\00:28:34.18
Jeff and I, we both receive
questions from you the trustors
00:28:34.21\00:28:40.92
and one is we do not use your
money while it's in the trust
00:28:40.95\00:28:45.79
while you or the beneficiary of
it while you're alive. So as you
00:28:45.82\00:28:55.06
are living we are managing this
trust for you. When you get to
00:28:55.10\00:28:59.87
the point when you can't take
care of yourself and you're not
00:28:59.90\00:29:04.87
of a sound mind anymore and you
can't make decisions well then
00:29:04.91\00:29:08.58
that trust goes irrevocable.
So that's when no one else can
00:29:08.61\00:29:14.18
change it based on how the trust
was written. And then after that
00:29:14.22\00:29:19.32
then once the trustor passed
away that's when we use those
00:29:19.35\00:29:25.39
funds. So the perception is we
do not use any of the money for
00:29:25.43\00:29:31.00
operations either a trustor says
during life that I would like to
00:29:31.03\00:29:36.24
give some money from the
trust to 3ABN or when they pass.
00:29:36.27\00:29:40.58
Okay, I like that.
00:29:40.61\00:29:42.51
So that's one of the major
concerns that we have that you
00:29:42.54\00:29:48.35
know we hear these thoughts,
Oh you're...3ABN is using our
00:29:48.38\00:29:53.59
money and we have to share with
them. We can't use your money.
00:29:53.62\00:29:56.83
This is your money and we manage
it for you as the trustee.
00:29:56.86\00:30:02.80
Right just like the church. We
have trust funds. Whenever that
00:30:02.83\00:30:05.77
department needs those
funds they need to be there.
00:30:05.80\00:30:07.84
For that specific purpose.
00:30:07.87\00:30:09.57
For that specific purpose.
You can't even redirect it.
00:30:09.60\00:30:11.67
No. Again with the life cycle of
a trust, cash trust, we need to
00:30:11.71\00:30:17.51
encourage our young people to
take and get involved as young
00:30:17.55\00:30:20.22
as they can because time value
of money is very important. The
00:30:20.25\00:30:24.05
longer that you can take and
save the better it grows and the
00:30:24.09\00:30:28.39
better return you have at the
time in life when you want to
00:30:28.42\00:30:31.06
draw off of your savings. So a
cash trust, you start out small
00:30:31.09\00:30:35.00
You take and add to it a little
bit either monthly or annually
00:30:35.03\00:30:38.87
or as time allows you to do that
your finances so that it can
00:30:38.90\00:30:43.07
grow. Then with market value
adjustment hopefully it is a
00:30:43.10\00:30:46.64
positive growth so that you can
benefit from that. So it just
00:30:46.68\00:30:50.41
grows into a bigger and bigger
next egg so at the end of your
00:30:50.45\00:30:53.95
life you're able to bless your
family, the church, 3ABN with a
00:30:53.98\00:30:58.69
very nice charitable gift.
00:30:58.72\00:31:01.72
Okay and I think you answered
the question as to when could
00:31:01.76\00:31:04.76
3ABN use the cash trust, you
know, the annuity or the cash
00:31:04.79\00:31:08.00
trust. That's when a person
passes away. Okay, now the other
00:31:08.03\00:31:12.07
thing, what about administrative
fees because people think well
00:31:12.10\00:31:15.00
I know I gave $100,000. How
much of that is going towards
00:31:15.04\00:31:18.01
administrative fees?
Let's talk about that.
00:31:18.04\00:31:20.58
Yes. 3ABN charges no
administrative fees. We charge
00:31:20.61\00:31:24.58
no fees to have the trust
established. We pay all the
00:31:24.61\00:31:28.88
attorney fees and all the
associated fees. All the fees it
00:31:28.92\00:31:32.89
costs to manage and operate
the trust services department.
00:31:32.92\00:31:35.59
There's none of that comes out
of it, so you have absolutely
00:31:35.62\00:31:39.46
no administrative fees, no fees
to set up your trust. It is all
00:31:39.49\00:31:45.93
to the trustor's benefit.
00:31:45.97\00:31:47.54
And you know we believe that
this is a win/win situation.
00:31:47.57\00:31:49.64
You know a trust is created
because they're entrusting us
00:31:49.67\00:31:53.94
with these funds. And
even though you know we have a
00:31:53.98\00:31:59.41
minimum to start a trust and
Jeff tell us what the minimum is
00:31:59.45\00:32:03.22
So our cash trust is $10,000
per individual or $5000 is the
00:32:03.25\00:32:08.49
minimum for an annuity.
00:32:08.52\00:32:11.13
For annuity... So on the trust
you know we have an obligation
00:32:11.16\00:32:14.03
to make sure that things go
according to how the document
00:32:14.06\00:32:18.77
is written. Because we're
trustee and we can't make any
00:32:18.80\00:32:21.87
changes to the
document. It's the trustor and
00:32:21.90\00:32:24.47
that's the person
00:32:24.51\00:32:25.84
who provided that money for that
trust. And if they're younger
00:32:25.87\00:32:30.41
like myself you know I want this
trust to grow so whenever I see
00:32:30.45\00:32:34.12
a need I start adding to it and
every time I add to it I don't
00:32:34.15\00:32:38.49
get charged any fees to get
a deposit in. If I need money I
00:32:38.52\00:32:43.02
think we talked about this. On
a transfer out to an individual
00:32:43.06\00:32:47.46
we don't charge any fees you
know for that transaction. So
00:32:47.50\00:32:53.67
all of this but what is the
benefit? The benefit for us is
00:32:53.70\00:32:56.54
when a trustor passes away we
get to use a portion of that or
00:32:56.57\00:33:01.88
whatever...You know we have a
25 percent minimum but some of
00:33:01.91\00:33:05.61
our trustors have given us 100
percent. And so we get to use
00:33:05.65\00:33:10.35
that for 3ABN for the purpose of
increasing the kingdom of God.
00:33:10.39\00:33:13.76
Wow, wow. So talk about
something else that...the
00:33:13.79\00:33:19.19
charitable gift annuity.
00:33:19.23\00:33:20.63
Charitable gift annuity. Well
that is basically the annuity
00:33:20.66\00:33:23.10
that we have. And those are set
up by...we have a program that
00:33:23.13\00:33:28.90
establishes what the interest
rate is and those interest rates
00:33:28.94\00:33:30.64
are going up now because of
inflation is going up. And that
00:33:30.67\00:33:34.71
rate is established. It's a
universal rate across most if
00:33:34.74\00:33:40.25
not all charities. So that rate
is set. So you just have to take
00:33:40.28\00:33:46.45
and decide which ministry that
you have the most faith in, the
00:33:46.49\00:33:50.79
most love that you want to
support, that you want to see
00:33:50.83\00:33:52.69
take and win more
souls for the kingdom.
00:33:52.73\00:33:55.66
That's right. We've seen the
benefit of the trust services
00:33:55.70\00:34:00.44
a lot. (It's been huge)
It's been amazing. Sometimes the
00:34:00.47\00:34:05.24
timing was impeccable.
(Absolutely) We couldn't even
00:34:05.27\00:34:06.61
have said
coincidental, providential.
00:34:06.64\00:34:08.58
So you know we talk about the
bittersweet. You know we hate
00:34:08.61\00:34:11.35
to have someone die because
we built a relationship with our
00:34:11.38\00:34:14.08
trustors and we love them. And
we get to know them almost like
00:34:14.12\00:34:17.52
family. (Yes) And as we grow
but then you know we pass away.
00:34:17.55\00:34:26.16
And then those resources that
God has blessed each of us that
00:34:26.19\00:34:30.83
it can continue and have the
legacy to help 3ABN fulfill it's
00:34:30.87\00:34:36.44
obligation.
00:34:36.47\00:34:37.81
Something to take you touch
on that you talked about a while
00:34:37.84\00:34:40.34
ago is we never know what
tomorrow's going to hold. And I
00:34:40.38\00:34:44.08
had a conversation yesterday
with an individual that his wife
00:34:44.11\00:34:48.82
he's in his 90s, but his
wife died unexpectedly. Had an
00:34:48.85\00:34:52.09
accident and evidently it
was at the fault of someone else
00:34:52.12\00:34:54.72
and she received a very large
insurance settlement and he is
00:34:54.76\00:35:01.26
now realizing that his wife
didn't have a will, didn't have
00:35:01.30\00:35:03.16
anything set up and he doesn't
and he is now wanting to get an
00:35:03.20\00:35:08.34
annuity and a trust and
everything set in place so that
00:35:08.37\00:35:12.31
when something happens to
him he realized knows in advance
00:35:12.34\00:35:15.04
where this money's going to go?
So it's very important that we
00:35:15.08\00:35:18.91
take and have it's called an
estate plan. And we need to sit
00:35:18.95\00:35:22.38
down, write down some thoughts
and ideas. If you're married,
00:35:22.42\00:35:25.45
get your wife, get some thoughts
and ideas put them down on
00:35:25.49\00:35:28.02
paper and then contact us
and let us help you with that so
00:35:28.06\00:35:31.49
that you are prepared, you
and your family, because when
00:35:31.53\00:35:35.26
someone dies it's a very tragic
and emotional time for a family.
00:35:35.30\00:35:39.17
And we acting as a trustee,
we can come in and assist the
00:35:39.20\00:35:44.97
family with that and take a lot
of the burden off of the family
00:35:45.01\00:35:47.94
shoulders.
00:35:47.98\00:35:49.31
Yeah we've had even church
members that because they didn't
00:35:49.34\00:35:53.42
make prior plans they pass away
and they've got to collect an
00:35:53.45\00:35:56.52
offering. Family members have
to contribute, the church has to
00:35:56.55\00:35:58.85
contribute. I'm almost getting
to the place where we want to
00:35:58.89\00:36:02.82
encourage people. People have
different views about insurance.
00:36:02.86\00:36:04.59
We can't do anything about
that. But I call it instead of
00:36:04.63\00:36:08.60
insurance I call it blessed
assurance. Because hey the
00:36:08.63\00:36:12.53
reality of it is if anybody
in your family passes away, the
00:36:12.57\00:36:18.74
morgue and the mortuary and
the funeral director may be a
00:36:18.77\00:36:21.34
Christian but you got to pay the
bill. That's the reality of it.
00:36:21.38\00:36:23.95
And you know we haven't talked
about what other things can we
00:36:23.98\00:36:26.82
put in a trust and one would be
you know funeral arrangements.
00:36:26.85\00:36:30.99
(Yes) And that's becoming more
popular because a lot of our
00:36:31.02\00:36:34.96
trustors don't want to
burden the family and so they
00:36:34.99\00:36:37.26
want to set everything up in the
trust, they want to make sure
00:36:37.29\00:36:40.23
everything is ready to go and
they prepay everything or have
00:36:40.26\00:36:46.03
it in the trust and say when
I die I want to be buried over
00:36:46.07\00:36:49.20
here. I want to make sure the
funds are available for this and
00:36:49.24\00:36:52.54
so it makes the burden a
lot less for the family. As you
00:36:52.57\00:36:56.24
shared as you know it
becomes you know traumatic.
00:36:56.28\00:36:59.71
Traumatic, yes. And I've been
in several states this summer
00:36:59.75\00:37:03.39
helping and settling estates
where the person has deceased.
00:37:03.42\00:37:07.66
And most of them they had no
other family. So who was going
00:37:07.69\00:37:11.79
to step in and take care of
their final arrangements, take
00:37:11.83\00:37:16.26
care of the final bills and
settle that up and handle the
00:37:16.30\00:37:20.10
sale of the property and
distribute the money the way
00:37:20.14\00:37:22.57
they wanted it. So yes I've been
in several states this summer
00:37:22.60\00:37:27.88
Well I tell you it reminds me of
the saying that the apostle Paul
00:37:27.91\00:37:33.15
says, We brought nothing
into this world and it's certain
00:37:33.18\00:37:36.15
we're not taking anything out.
But everything that God puts in
00:37:36.18\00:37:38.79
our possession is obviously for
the benefit of us while we're
00:37:38.82\00:37:42.86
living here but also there's
a stewardship aspect to that.
00:37:42.89\00:37:45.26
And the other thing is, some
of you may have family members
00:37:45.29\00:37:48.46
that are not believers.
You might say even while you're
00:37:48.50\00:37:52.93
alive, I'm not going to put that
kind of money in so and so's
00:37:52.97\00:37:55.27
hand. These are some of the
ways. What can we do to help
00:37:55.30\00:37:57.87
people that are Christians and
believe in the responsibility of
00:37:57.91\00:38:01.28
stewardship avoid things
like that? What are some of the
00:38:01.31\00:38:04.11
things that you would recommend?
00:38:04.15\00:38:05.48
It is very common and a trust is
a very good instrument for that.
00:38:05.51\00:38:08.78
And a lot of people will include
like 3ABN as one of their
00:38:08.82\00:38:13.32
children so if they have three
children they'll include each
00:38:13.36\00:38:16.39
child at 25 percent and 3ABN at
25 percent in their trust. And
00:38:16.42\00:38:21.13
something that people don't want
to accept sometimes their family
00:38:21.16\00:38:25.77
does not get along
well after they pass.
00:38:25.80\00:38:27.64
Oh, I've seen that situation.
00:38:27.67\00:38:29.74
Yes, so if you want to take and
eliminate that family strife in
00:38:29.77\00:38:33.98
putting one of the family
members in that position of
00:38:34.01\00:38:36.58
the trustee and having their
other siblings squabble and have
00:38:36.61\00:38:39.55
that conflict with them, when
you take and put 3ABN as the
00:38:39.58\00:38:43.42
trustee, you're eliminating that
family issue out of the equation
00:38:43.45\00:38:46.59
for them.
00:38:46.62\00:38:47.96
That's right. So 3ABN can be the
one that steps in as an executor
00:38:47.99\00:38:51.09
As a trustee yeah as a trustee.
00:38:51.13\00:38:52.99
It's the executor for a will and
a trustee for a trust. And two
00:38:53.03\00:38:59.87
differences with those. A will
when you fill it out and you
00:38:59.90\00:39:03.74
sign it, it is just a dormant
instrument. It does not come
00:39:03.77\00:39:05.11
into effect or do anything
until the time you pass. Then it
00:39:06.07\00:39:09.91
becomes active (the law) yes
the law. A trust is the opposite
00:39:09.94\00:39:15.28
A trust is not really the
opposite but the moment you sign
00:39:15.32\00:39:17.49
It, it's alive and it
is functioning and working
00:39:17.52\00:39:20.76
so you can add to, you can
take out of, you can change or
00:39:20.79\00:39:24.13
manipulate all the way to the
time you die. At that time it's
00:39:24.16\00:39:27.53
set in stone and then it's
distributed according to your
00:39:27.56\00:39:31.33
plans at that time.
00:39:31.37\00:39:32.70
I've learned something because
I wasn't thinking about but I'm
00:39:32.73\00:39:34.70
listening but you guys are
dealing with this every day and
00:39:34.74\00:39:37.11
it's good to hear that one is
alive and well and it's working
00:39:37.14\00:39:40.34
with you, working for you. And
you could say, ah, not feeling
00:39:40.38\00:39:43.88
well, this month. Let me just
make a few changes to that trust
00:39:43.91\00:39:46.41
and then it's still functional.
Whereas as you said a will you
00:39:46.45\00:39:51.45
Sign it and it just sits there
like a dormant document. If it
00:39:51.49\00:39:54.06
becomes the law of the land
the moment you decease. So it's
00:39:54.09\00:39:57.59
unchangeable when you die?
00:39:57.63\00:39:59.13
Yeah, that's correct.
00:39:59.16\00:40:00.50
So some people say well I have
a trust but I don't have a will
00:40:00.53\00:40:04.27
should I get a will? And the
answer is you should get a will
00:40:04.30\00:40:08.20
because you may not have
everything in the trust that's
00:40:08.24\00:40:10.71
in your estate. So if you have
everything in your trust then
00:40:10.74\00:40:16.21
you don't need a will but there
are times when you need a will
00:40:16.24\00:40:19.81
and they usually call that a
poured-over will. So anything
00:40:19.85\00:40:23.22
that's not in the estate in
your trust, it goes into the
00:40:23.25\00:40:27.99
will and then the will says and
redirects it into your trust.
00:40:28.02\00:40:31.09
So having a will is very
important. Having a trust gives
00:40:31.13\00:40:37.13
you the latitude to know how to
deal with things, how to get out
00:40:37.17\00:40:41.77
of a lot of the government
issues and some of the you know
00:40:41.80\00:40:46.51
plans. When you get to the
point and you die and you have
00:40:46.54\00:40:50.41
to go through all the government
regulations in order to get that
00:40:50.45\00:40:53.92
property out so it goes into the
trust. And we deal with that you
00:40:53.95\00:41:01.46
know a number of times. And if
the trust is well-designed and
00:41:01.49\00:41:06.80
everything is in there so it's
always good to make sure you
00:41:06.83\00:41:09.26
get all the things that you want
in the trust. You could say okay
00:41:09.30\00:41:13.20
this happens, this is what
happens to it. And you have the
00:41:13.23\00:41:18.44
full spectrum of what happens
with your assets whereas a will
00:41:18.47\00:41:23.38
only has a few options.
Everything goes in there and
00:41:23.41\00:41:27.82
that's great but then if you
have like property for instance
00:41:27.85\00:41:33.76
and if it's not in the trust
then you have to go through
00:41:33.79\00:41:36.46
probate. Well with the trust you
don't have probate. (Okay, yeah)
00:41:36.49\00:41:41.96
So these are things that people
say well if I have a trust you
00:41:42.00\00:41:45.37
know it's kind of expensive.
Well if you have a trust with
00:41:45.40\00:41:47.80
3ABN it doesn't cost you
anything and if you put your
00:41:47.84\00:41:50.21
house or property in there then
we don't have to go to probate.
00:41:50.24\00:41:53.61
Thing happen quicker.
It's a lot easier, yep, and the
00:41:53.64\00:41:59.65
beneficiaries benefit sooner
than waiting long periods of
00:41:59.68\00:42:04.59
time because...
00:42:04.62\00:42:05.95
There is a cost with
probate. Probate is not free.
00:42:05.99\00:42:07.32
Oh yeah. The person that's doing
the functional administrative
00:42:07.36\00:42:10.63
work...
00:42:10.66\00:42:12.06
Yes Normally there's going to be
an attorney involved and you're
00:42:12.09\00:42:15.96
going to have billable hours
and it's a very lengthy and time
00:42:16.00\00:42:18.87
consuming process. So much as
you can take and avoid probate
00:42:18.90\00:42:22.47
it's just to your financial
advantage for you and for your
00:42:22.50\00:42:24.94
heirs.
00:42:24.97\00:42:26.31
Yeah it's almost a given that an
attorney doesn't charge $10 an
00:42:26.34\00:42:28.68
hour.
00:42:28.71\00:42:30.05
On I tell you that's a given.
00:42:30.08\00:42:31.88
You know that's the one career
in life that you are going to
00:42:31.91\00:42:36.15
get a vacuum put in your pocket.
Not saying that attorneys are
00:42:36.18\00:42:40.19
not necessary to make it all
legal. But we have to make sure
00:42:40.22\00:42:42.86
that if we have options, the
options that we're talking about
00:42:42.89\00:42:45.46
on the program today. We're not
saying one is better than the
00:42:45.49\00:42:48.00
other but we're just pretty much
reiterating, What do you want to
00:42:48.03\00:42:50.97
be able to do? That's the key
between trust, the annuity, the
00:42:51.00\00:42:54.04
SAT, the CRUT. The CRUT
once again which is a...
00:42:54.07\00:42:57.84
CRUT is charitable remainder
unitrust that helps with
00:42:57.87\00:43:01.74
appreciated property
and avoids capital gains.
00:43:01.78\00:43:04.05
Right. Because a lot of times
I like that illustration, like
00:43:04.08\00:43:07.68
you said you're a farmer but
also as an auctioneer sometimes
00:43:07.72\00:43:11.39
when a person dies the trust or
the will sends all that property
00:43:11.42\00:43:16.06
to you and then you have to...
00:43:16.09\00:43:19.29
There has been several times in
our career that families did not
00:43:19.33\00:43:21.90
have a trust nor a will and
they passed away and the family
00:43:21.93\00:43:26.23
became very dysfunctional and
it went to court and we got a
00:43:26.27\00:43:30.67
call from the court and we went
out and conducted the auction
00:43:30.71\00:43:35.31
selling every asset and dividing
it according to the court's
00:43:35.34\00:43:38.75
direction. So the family had
no input of how it was handled.
00:43:38.78\00:43:42.55
So that is something that you've
got to consider if you have
00:43:42.58\00:43:45.85
heirs and you have property
and you don't have a will or a
00:43:45.89\00:43:49.92
trust the courts will take
and tell how it is distributed.
00:43:49.96\00:43:53.66
Right and I've heard people say
well Auntie, Mom, you don't have
00:43:53.70\00:43:57.83
to worry about anything. You
know I love you. But I've seen
00:43:57.87\00:43:59.73
the moment people die, I've
seen emotions change, I've seen
00:43:59.77\00:44:03.00
spirits come in that just say oh
wait a minute, wait a minute, I
00:44:03.04\00:44:05.97
didn't know they had that
much. Well right now since I'm
00:44:06.01\00:44:08.08
executor...And one of the things
I've also said, never to make
00:44:08.11\00:44:10.41
the executor as well as...What's
the two things? Executor and...
00:44:10.45\00:44:15.65
Well, there's a couple things,
well there's a power of attorney
00:44:15.68\00:44:19.35
and executor. So your power of
attorney is only during life. So
00:44:19.39\00:44:23.83
while the person is alive
there's two; there's one for
00:44:23.86\00:44:26.76
health and there's one for
finance. So you want to make
00:44:26.80\00:44:29.20
sure they're not the same person
because of many reasons that
00:44:29.23\00:44:33.40
you can figure out. But
yeah while their alive power of
00:44:33.44\00:44:36.74
attorneys are very important.
But then your executor on a will
00:44:36.77\00:44:42.31
is when you pass away, your
executor takes control of that
00:44:42.34\00:44:46.38
estate for a will and
then your trustee for a trust.
00:44:46.41\00:44:50.22
Okay, so you have three,
power of attorney, executor and
00:44:50.25\00:44:54.62
trustee.
00:44:54.66\00:44:55.99
And while you were saying
earlier about the families,
00:44:56.02\00:44:58.26
we've had to have the sheriff's
department there at the auction
00:44:58.29\00:45:01.56
to keep peace in the family.
So families do take and get very
00:45:01.60\00:45:06.57
dysfunctional
sometimes when money's involved.
00:45:06.60\00:45:09.54
And the more relatives you have
as we say...where there's a will
00:45:09.57\00:45:14.91
there's a relative.
00:45:14.94\00:45:17.98
Well and you know the thing also
when building a trust, if you're
00:45:18.01\00:45:22.78
interested in a trust, even
a will make sure your family
00:45:22.82\00:45:25.85
knows what you're doing.
Because you don't want to
00:45:25.89\00:45:30.03
them. You want to make
sure you're able to explain
00:45:30.06\00:45:33.43
everything to the family so when
things start progressing to the
00:45:33.46\00:45:39.17
point where you have someone
else taking care not only your
00:45:39.20\00:45:42.44
assets but you know your life
style. You want to make sure the
00:45:42.47\00:45:47.14
rest of the family
knows what's going on?
00:45:47.18\00:45:48.51
No surprises.
00:45:48.54\00:45:49.88
That is good. I'm glad you
mentioned that because sometimes
00:45:49.91\00:45:51.25
people say I have no idea what
Auntie has in store. I have no
00:45:51.28\00:45:53.98
idea what my mom... And then
they pass away and then they
00:45:54.02\00:45:57.49
realize...Really?! So try
to be as open with your family.
00:45:57.52\00:46:01.72
Now obviously extenuating
circumstances come in. That's
00:46:01.76\00:46:05.43
one of the reasons why 3ABN
is offering this service because
00:46:05.46\00:46:08.50
the credibility is such a
significant part of the property
00:46:08.53\00:46:11.37
you've worked all your
life to be able to amass. You're
00:46:11.40\00:46:14.84
finances, you've worked hard.
You want to know that when I
00:46:14.87\00:46:17.34
pass away and let's just make
it clear. You know mortality is
00:46:17.37\00:46:21.91
100 percent. We all have a grave
with our name on it somewhere
00:46:21.94\00:46:26.18
or we will. I'm hoping the Lord
comes before that time and we
00:46:26.21\00:46:29.38
all want that to happen. But
it's important when God entrusts
00:46:29.42\00:46:32.92
you with something that you can
be, as the Bible says, a steward
00:46:32.95\00:46:36.32
who is found faithful? I mean
I've seen situations where you
00:46:36.36\00:46:41.86
have a family member that's
really into some shady stuff and
00:46:41.90\00:46:44.70
another one's Christian. They
start arguing with each other
00:46:44.73\00:46:46.84
and you don't want
that situation. So quickly
00:46:46.87\00:46:49.60
reiterating here I can't
forget CRUT as long as I live:
00:46:49.64\00:46:53.44
Charitable Remainder Unitrust
which helps you avoid capital
00:46:53.48\00:46:57.88
gains. And SAT...
00:46:57.91\00:47:00.22
Self-administered Trust where if
you're younger and you're doing
00:47:00.25\00:47:03.45
a lot of activity with property
or things that require a deed or
00:47:03.49\00:47:08.12
some type of legal instrument.
To do it yourself is very
00:47:08.16\00:47:12.23
helpful. We can help with that.
And we can make your life a lot
00:47:12.26\00:47:17.43
easier in a SAT. And it's
usually for younger people who
00:47:17.47\00:47:21.10
are very active and move things
back and forth out of their
00:47:21.14\00:47:23.87
trust, in their trust, and it
gives them the flexibility and
00:47:23.91\00:47:26.41
they're the trustee of it.
00:47:26.44\00:47:27.78
They may have a lot of air B
and B's that they're managing.
00:47:27.81\00:47:30.48
And things like that.
00:47:30.51\00:47:31.85
Business, personal, or your
residence. You could put your
00:47:31.88\00:47:37.75
automobile in a
trust. (Wow that's true)
00:47:37.79\00:47:41.76
And with a SAT you're in full
control. So you decide when you
00:47:41.79\00:47:46.83
want to do things and we're
here to help you. We've been
00:47:46.86\00:47:50.17
using the terms trustor
and trustee. In a SAT, a self-
00:47:50.20\00:47:53.74
administered trust as long as
you're alive and of sound mind
00:47:53.77\00:47:56.20
you are the trustor and the
trustee. You are the same but
00:47:56.24\00:48:01.88
then someone else steps in
as the successor trustee in your
00:48:01.91\00:48:07.85
time of past death or whenever
you can't make a sound decision.
00:48:07.88\00:48:12.22
You're incompetent.
00:48:12.25\00:48:14.79
So let me ask the question. I
didn't bring this up yet. What
00:48:14.82\00:48:17.36
if somebody has debt that they
pass away and they leave a lot
00:48:17.39\00:48:22.46
of debt. Is it your obligation
to pay their debt or how does
00:48:22.50\00:48:26.53
that work?
00:48:26.57\00:48:27.90
If there is funds in their trust
whether it's a cash trust or if
00:48:27.94\00:48:31.67
there's a self-administered
trust, yes. Funeral expenses
00:48:31.71\00:48:34.94
last your health you know your
cause of death those all come
00:48:34.98\00:48:42.45
out as if there's a mortgage
on the property or anything like
00:48:42.48\00:48:43.82
that. All that has to be paid
and compensated for as long as
00:48:43.85\00:48:48.09
there are funds to do so. (Okay)
00:48:48.12\00:48:50.19
All the expenses in the estate
would be paid out of the trust.
00:48:50.23\00:48:54.43
And then after that,
once all the obligations and
00:48:54.46\00:48:58.93
encumbrances of the estate have
been consumed then if there's
00:48:58.97\00:49:03.71
any left over money,
then the trustee looks to the
00:49:03.74\00:49:07.61
beneficiaries and
pays them accordingly.
00:49:07.64\00:49:10.11
And that's why it's good to have
somebody to survive you that can
00:49:10.15\00:49:13.11
make some wise decisions about
what you have in your possession
00:49:13.15\00:49:15.95
whether financially, car, house,
whatever the accouterments are.
00:49:15.98\00:49:20.09
And whenever you have 3ABN as
your trustee it is not a person
00:49:20.12\00:49:25.63
it is an organization so that
it does not die. You know we see
00:49:25.66\00:49:29.20
that 3ABN is growing it's alive
and it's well. 3ABN is going to
00:49:29.23\00:49:32.87
be here until Jesus comes home
winning souls. So when you have
00:49:32.90\00:49:36.17
3ABN as your trustee, 3ABN is
not a person, it's an entity, so
00:49:36.20\00:49:41.84
that is going to be a constant.
I might not be here whenever
00:49:41.88\00:49:44.98
your trust matures, it might
be my successor or maybe two
00:49:45.01\00:49:48.82
successors down in the line.
So but it's going to be 3ABN as
00:49:48.85\00:49:54.59
your trustee, not Jeff Doerr.
00:49:54.62\00:49:55.96
But we would like to be your
trustee as long as we can, right
00:49:55.99\00:49:58.73
Oh yes. Yes. Yes absolutely.
00:49:58.76\00:50:03.40
I almost want to sing the song
Trust and obey for there's no
00:50:03.43\00:50:06.74
other way. And it is so true.
When you think about. I'm sure
00:50:06.77\00:50:10.44
that as you're listening to
the program you may want to play
00:50:10.47\00:50:13.84
it back or just look at it again
when you get an opportunity on
00:50:13.88\00:50:16.64
3ABN Plus. We talk about some
real issues of life. The issues
00:50:16.68\00:50:20.32
of life are the things that we
don't plan for. And if you don't
00:50:20.35\00:50:24.62
think it's an issue when
you are deceased, it's an even
00:50:24.65\00:50:28.79
bigger issue. So it's important.
So that's why we talk about the
00:50:28.82\00:50:31.96
stewardship aspects of it and
these two gentlemen are here at
00:50:31.99\00:50:34.76
3ABN to make sure that whatever
you have, whether you think it's
00:50:34.80\00:50:38.93
small or whether you know it's
large there are responsibilities
00:50:38.97\00:50:43.41
fiduciary responsibilities
that come along with that as
00:50:43.44\00:50:47.01
Christians. God gives it to us.
For us that are Christians, we
00:50:47.04\00:50:51.21
return one-tenth to the Lord.
Well because we return one-tenth
00:50:51.25\00:50:54.68
doesn't mean we can just
do whatever we want with the
00:50:54.72\00:50:57.62
nine-tenths. We're still help
accountable for how we handle
00:50:57.65\00:50:59.12
that. So God has given
you strength to get wealth and
00:50:59.15\00:51:02.72
there's a text in Deuteronomy
that says you know when you
00:51:02.76\00:51:04.29
build your house and when you
get your property and when you
00:51:04.33\00:51:06.96
get your land when you're doing
well don't say my might and my
00:51:07.00\00:51:10.37
power got me this wealth. You
know God is the one that gives
00:51:10.40\00:51:14.24
us strength to get wealth
and the word wealth doesn't
00:51:14.27\00:51:16.54
necessarily mean a millionaire
or a person with a lot of money
00:51:16.57\00:51:19.94
or a lot of property. It means
a person that has been given
00:51:19.97\00:51:23.48
something by God and that person
becomes personal responsibility
00:51:23.51\00:51:27.42
for the stewardship of it.
Now we're going to take a little
00:51:27.45\00:51:29.05
break here and come back and
give both Jeff as well as Jason
00:51:29.08\00:51:32.49
an opportunity to answer some
questions or reiterate but as
00:51:32.52\00:51:37.66
you think about it tomorrow
is not the best time to make a
00:51:37.69\00:51:40.60
decision about a trust. Today
is. And think about and what God
00:51:40.63\00:51:45.33
had put in our hand can be a
blessing to your family as well
00:51:45.37\00:51:49.04
to the ministry of
3ABN. We'll be right back.
00:51:49.07\00:51:52.17
For more information about 3ABN
Trust Services please write to
00:51:52.21\00:51:55.48
P.O. Box 220, West Frankfort,
IL 62896. Or call us at
00:51:55.51\00:52:01.88
1(800)886-4800. You can also
visit our website 3abn.tv or
00:52:01.92\00:52:08.86
send us an email
TrustServices@3abn.org
00:52:08.89\00:52:14.36
¤ ¤
00:52:14.40\00:52:26.84