You and I are there . . .

in New York City, Pennsylvania and Washington, D.C., through our ELCA Domestic Disaster Response. We are helping affected communities and individuals by partnering with synod offices, congregations and Lutheran social ministry organizations. In this major national disaster we are coordinating our response with  the Lutheran Church-Missouri Synod, Aid Association for Lutherans, Lutheran Brotherhood, and our ecumenical partners in Church World Service, as well as with the American Red Cross and government entities. As our response continues, you can find updates at www.elca.org/disaster.

On September 14, our presiding Bishop, H. George Anderson, wrote this to pastors:

We do not know how long the recovery from this tragedy will take, but this church is committed to walk with survivors for as long as needed. This is not a new approach. Lutheran Disaster Response continues to provide care, counseling, and assistance to survivors and their families several years after the bombing of the Murrah Federal Building in Oklahoma City. Long after media attention was directed elsewhere, LDR is at work among people, many of whom are the “working poor.” Please offer your members the opportunity to be part of this response by giving to the ELCA Domestic Disaster Response.

I would add that our own Lutheran Social Services of Kansas and Oklahoma is the lead organization not only in the continuing response to the Murrah Federal Building bombing but also to the tornado in Oklahoma City a couple of years ago and to the tornado that devastated Hoisington, Kansas, earlier this year.

At the same time that we are responding with love and compassion to the brutality of September 11, let us not forget those who, on foreign shores, depend on our generosity for daily bread through the ELCA World Hunger Appeal. Contributions to the Appeal are not keeping pace with last year, while the needs around the world are not diminishing. If anything, quite the opposite is true, considering the number of innocent people, now refugees, displaced by war and fear of war.

Increased generosity can be difficult, just when our own economy is uncertain and unemployment has increased. And yet, this is the purpose for which God forms the  church—to make Jesus’ love real for all for whom he died, both near and far.

So, let us not grow weary. The one who himself was vulnerable in a manger and no stranger to brutality and death walks with us still and promises that as we give our lives away for his sake and for the sake of the Gospel we will be given new life. 

Peace be with you—dh

Gifts of Life Insurance

Generally speaking, any piece of property that has value can be given as a gift. One form of property that many people wisely own is life insurance. The regular payment of premiums purchases financial protection for the insured person and those named as beneficiaries in the policy. Any insurance agent can easily recount heart-warming stories of promises fulfilled by the payment of death benefits when the life of an insured person ended too soon.

Many, though, may not be aware that property in the form of life insurance can also be an excellent asset to use in making a gift to a ministry of one’s choice. The gift can be:

1. All or part of the death benefit by making the ministry a beneficiary on the policy, using a change of beneficiary form provided by the insurance company. There is no cost to make the change and, as long as the policy remains in force, the ministry that is named as the beneficiary will receive the portion of the proceeds that the insured person has designated.
    

2. All of the death benefit by making the ministry both the owner and beneficiary of a new or premium-due policy. Again, as long as the policy remains in force the ministry will receive the full proceeds of the policy at the death of the insured person. This idea is useful for people who can qualify for new insurance, can afford the premiums, and have a desire to make a significant planned gift to the church or a ministry at their death. An added bonus to this plan is that premiums are deductible on income tax, if the insured person donates the premium annually to the ministry who, in turn, pays the premium—and if the insured person itemizes deductions.
    

3. All of the death benefit by making the ministry both the owner and beneficiary of a paid-up policy. Since the policy is paid up, this gift idea is attractive to folks who want to make a planned gift but do not want to or are unable to purchase new insurance. Again, there is an added bonus: a part of the previously paid premiums is deductible on income tax.  The insurance company can provide the deductible amount upon request.

For more information about planning a gift of life insurance, or other assets , contact Pr. Dennis Hallemeier using the information listed on the 'Contact Us' page.

US Savings Bonds: Taxes or Gift?

Have you remembered Uncle Sam in your will? Maybe not, but if you own U.S. Savings Bonds, your Uncle Sam will cash in anyway when you die, even if you don’t mention him in your will.

Many people have government savings bonds that they purchased over the years, with income accumulating ever since. Although you do not have to pay income tax as the interest accrues, look what happens later:

As an alternative to paying income taxes on the bond interest, you might consider a specific bequest of the bonds to your congregation, favorite ministry or any charity. The church, ministry, or charity will not have to pay the income tax when they cash in the bonds after your death.

Government bonds also are included in your estate and may be subject to estate taxes if your estate exceeds the unified credit amount of $675,000 (in 2001—more in succeeding years). A bequest of the bonds to the church, ministry, or charity would qualify for an estate tax charitable deduction and avoid estate taxes on the bonds as well.

A bequest of government savings bonds to the church is a great way to accomplish some of your charitable objectives in a tax-wise way without including Uncle Sam as part of your plan.

Estate planning is long term money management: listing your assets and making legal arrangements to pass them on as you decide—to family, friends, congregation, favorite ministries and charities. It’s a way of extending your faith, values, hopes and generosity.

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Information and examples in this newsletter are for educational purposes only and should not be considered tax or legal advice. Please consult your tax or legal advisors about your own will, trust or estate plan.

Content Copyright (c)2000, Lutheran Planned Giving in the Arkansas-Oklahoma and Central States Synods.  All rights reserved.