Maranatha Baptist Bible College and The LIFE Financial Group, Inc. TheLIFEGroup

2. Parts of the following slides have been taken from Randy Alcorn�s book �The Law of Rewards.�Published by Tyndale Books.

5. II. The Reward Principle When we invest money now in God�s kingdom, we will receive great rewards later in heaven.

6. A. What does Jesus expect? Jesus said, �Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal; but lay up for yourselves treasures in heaven�For where your treasure is there will your heart be also� Matt 6:19-24

7. Jesus expects us to invest in the Kingdom. He didn�t tell you not to store up treasures, on the contrary, he commanded us to store up treasures, lots of treasures in heaven. The reality of eternal rewards should foster an investment mentality.

9. I believe that� �God prospers you and I not to raise our standard of living, but to raise our standard of giving�

11. B. Give shares of stock or a mutual fund to ministry as your tithe. Stock Splits Inherited Stock Life Insurance Company Stock Met Life Prudential Mutual Fund Shares

12. C. Donate land or a building! Invest in the lives of people through A bargain sale. Life estate. An outright gift. Fund a project or a scholarship in memory of your family.

13. D. Set up a Charitable Remainder Trust Turn appreciated assets into a guaranteed monthly income. Avoid capital gains taxes. Take a sizable income tax deduction. Direct to various ministries at your death � you can maintain control. Defer the income until needed. Use like a Retirement Fund

14. E. Purchase a Gift Annuity An investment contract providing specific guarantees issued by Christian ministries. Invest $10,000 or more in the Lord�s work. Receive 7%, 8% or even 9% interest income guaranteed for life. When the Lord calls you home, the investment is made in the ministry of your choice.

15. Gift Annuity DETAILED FLOW CHART In order to understand better your benefits with a gift annuity, let's view a more detailed chart of the gift annuity plan. The more detailed chart for the Gift Annuity shows the property in the box on the top left. When you give this property to charity, you will receive a contract for annuity payment. Under benefit one there is an income tax deduction and, based upon your income tax rate, the estimated savings. For some persons, this deduction will be used this year. For others, it may be used partially and then spread over as many as five additional years. In the center section of the chart you will see your annuity payout rate, which is based upon your age. The charity receives the property and places that value into the charity's annuity reserve fund. This reserve fund is now invested and an annuity is paid out for one or two lives. A very nice benefit of the payment is that part of the payment is tax free. Note under benefit two that your tax free payment and your estimated total payout are displayed. Since there is a tax deduction and part of the payments are tax free, your effective payout rate is higher than the rate listed above. Considering these two tax benefits, a Gift Annuity truly does have a very attractive payment rate for one or two lives. After all payments are made for one or two lives, the annuity value will be distributed to charity. This property passes to charity with no probate fees and no estate tax. It is an excellent method for receiving high fixed payments and then helping your favorite charity. DETAILED FLOW CHART In order to understand better your benefits with a gift annuity, let's view a more detailed chart of the gift annuity plan. The more detailed chart for the Gift Annuity shows the property in the box on the top left. When you give this property to charity, you will receive a contract for annuity payment. Under benefit one there is an income tax deduction and, based upon your income tax rate, the estimated savings. For some persons, this deduction will be used this year. For others, it may be used partially and then spread over as many as five additional years. In the center section of the chart you will see your annuity payout rate, which is based upon your age. The charity receives the property and places that value into the charity's annuity reserve fund. This reserve fund is now invested and an annuity is paid out for one or two lives. A very nice benefit of the payment is that part of the payment is tax free. Note under benefit two that your tax free payment and your estimated total payout are displayed. Since there is a tax deduction and part of the payments are tax free, your effective payout rate is higher than the rate listed above. Considering these two tax benefits, a Gift Annuity truly does have a very attractive payment rate for one or two lives. After all payments are made for one or two lives, the annuity value will be distributed to charity. This property passes to charity with no probate fees and no estate tax. It is an excellent method for receiving high fixed payments and then helping your favorite charity.

16. F. Fund a Life Insurance Policy Many ways to fund a new policy: Use income from a gift annuity. Use the tax savings. Ways to benefit others: Give old policies. Change beneficiaries to include your church and Maranatha Baptist Bible College.

17. G. Start your own Family Foundation Use a Donor-Advised Fund � EASY! Add to it and take the tax deduction. Use your children as subsequent advisors. Gift your IRAs and annuities to your own Foundation at death. Use for gift money as needs or opportunities arise. Use for money to fund mission trips.

18. IRA -- No Estate Tax IRA -- No Income Tax IRA -- No Probate TO CHILDREN AND CHARITY A superior solution is to give the IRA to charity and the other assets to children. Viewed from the standpoint of children, an estate consists of both �good� and �bad� assets. The home, land, stock, bonds and CDs are all good assets that can be received by children with no payment of income or capital gains tax. If the owner chooses to give the IRA to charity, the good news is that, in the hands of a charity, this �bad� asset becomes a �good� asset. The charity is tax- exempt and does not have to pay income tax. One of the very simple and yet very desirable changes that many friends of charities could make is to leave the IRD (income in respect of a decedent) assets such as an IRA to charities and bypass all the income tax.TO CHILDREN AND CHARITY A superior solution is to give the IRA to charity and the other assets to children. Viewed from the standpoint of children, an estate consists of both �good� and �bad� assets. The home, land, stock, bonds and CDs are all good assets that can be received by children with no payment of income or capital gains tax. If the owner chooses to give the IRA to charity, the good news is that, in the hands of a charity, this �bad� asset becomes a �good� asset. The charity is tax- exempt and does not have to pay income tax. One of the very simple and yet very desirable changes that many friends of charities could make is to leave the IRD (income in respect of a decedent) assets such as an IRA to charities and bypass all the income tax.

19. I. Give through your will or trust Why limit the charitable gift to a tithe? It all belongs to God. Always put your local church first. Also establish a Maranatha Baptist Bible College scholarship or memorial fund in the name of your family.

20. A. God expects us to plan. Be a blessing to your children. Proverbs 13:22 An inheritance is to be expected. Proverbs 19:14 Planning leads to profit. Proverbs 21:5 The foolish man doesn�t save. Proverbs 21:20 The foolish man doesn�t plan. Proverbs 22:3 We should know our net worth. Proverbs 27:23-24 Why? Because, no man has power over the day of his death. Ecclesiastes 8:8 Estate Planning from a Christian Worldview

21. B. Estate planning is often avoided. �Estate planning is confusing.� �I don�t want to think about death.� �I don�t think I have a large enough estate.� �The topic is too overwhelming.� �The Lord is coming soon � who cares?� �I don�t know who to name as guardian.� Write down your reason

22. II. When Do I Need Estate Documents? The moment you start a family Any time you own assets in your name alone Everyone needs a Will!

23. What should a Will include? Your Testimony and Challenge Charitable Planning for Ministry Provisions for Your Children Did you forget one? Christian Schooling or College? Guardian, Trustee & Executor Did you provide for backups? What age are they to receive the money? Proper Witness�s Self-Proving Affidavit (attached to the last page)

24. What is a Living Trust and when do you need one? Provides for ongoing management. Avoids the cost and delays of probate. Avoids ancillary probate. A must for the residents of some states. Is more complex and costly to draft. Still need a basic will. All titled assets need to be re-titled into the trust: house, investments, etc. Usually for larger estates.

25. V. What is Probate &how can you avoid it? A. Probate - A legal process used to transfer assets - Occurs in every state where you own real estate. - Probate is very easy in some states and very costly & troublesome in others. Attorney fees can be costly and vary by state. - It usually takes 1 year or more to settle an estate.

26. B. Probate can be avoided. Through a living trust. Through proper titling of accounts. Through beneficiary designations. Annuities, IRAs, life insurance, etc. By not owning any titled property at death.

27. VI. What Else Should You Know? A. Federal Estate Tax - also called the Confiscation Tax, this can take up to 50% or more of your estate at death. Avoid by planning ahead. Avoid by including a �disclaimer trust� in your Will or Living Trust.

28. Power of Attorney - Legally appoints a personal representative Choose a backup Can be dangerous in the wrong hands But a lifesaver in others Needed by everyone!!!

29. C. Health Care Directive - also called a Medical Power of Attorney. �Keep me alive forever� or �let me die in peace�pull the plug.� Living Will should contain new HIPPA language to avoid problems with doctors and hospitals.

30. Prenuptial Agreements � often used with second marriages to protect children. Can be very useful for avoiding conflict and protecting inheritance. Provide for Special Needs Children Protect disabled child�s assets Added to a Will or Trust A Trustee is appointed

31. Where Should I Keep  These Documents? Usually best to keep originals at home. A copy can be given to your children. A copy is usually requested by your financial advisor. Review and update every 5 years.

32. Giving is a giant lever positioned on the fulcrum of this world allowing us to move mountains in the next world. Because we give, eternity will be different�for others and for us.

33. Continue to Build the Kingdom

35. Share your dreams with usso we can help you fulfill them! Proverbs 16:3, 9 �Commit thy works to the LORD, and thy thoughts [plans) shall be established [succeed] � A man�s heart deviseth [plans] his way [course]: but the LORD directeth his steps.� What are your plans? For help or additional information, speak to Mike, Jim or Roy.

36. Remember to visit us on the web�www.TheLIFEGroup.orgwww.MBBC.edu Please pass in the data sheets for the Christian�s Will. Please pass in the Seminar Survey