Estate Planning
You’ve made it a priority to provide for your family. At BDC Capital Management, we’ll help you continue to provide for them for generations to come, through careful estate planning that is aligned with your values.
Our first step is to listen carefully to understand your values, needs and goals. We then discuss the proper roles of wills, trusts – including special needs trusts – power of attorney and pro-life medical directives. We’ll review asset wealth preservation strategies, which can be addressed economically through the proper titling of assets and appropriate beneficiary arrangements.
Our plan of action could include the development of a family mission statement, which establishes a moral compass to guide loved ones in the future. A Christian Will Preamble can be built into your will, to ensure that the values God has inspired you to support will live on.
We can also incorporate your values into medical directives that support a pro-life philosophy. And we can arrange for planned giving through a variety of financial vehicles, with tax-wise support for Christian ministry.
Biblically Responsible Stewardship and Estate Planning
As faithful stewards we know that the Lord expects us to administer the assets He gives with the conviction that they belong to Him. Of course, this involves not only how we use those assets during our life, but how and to whom we transfer them upon our death. At BDC Capital Management, we are here to help you form a plan of action – one that will incorporate your stewardship goals of providing for your family with your desire to sustain those ministries you have supported through the years.
Read more: Biblically Responsible Stewardship and Estate Planning
The Charitable Lead Trust
Benefits of the Charitable Lead Trust – The tremendous estate-tax-savings potential is the biggest reason why individuals consider a Charitable Lead Trust. Technically, the moment cash or other property is put into the trust it no longer belongs to the client. Therefore, assuming the ultimate beneficiary is someone other than the client themselves, it cannot be taxed as part of the client's estate. If the client retains the right to recover the trust principal at the end of the trust, the present value of that right at the date of the client's death will be included in their estate. A Charitable Lead Trust is an acceptable option for the client who is willing and able to personally give up income for a given period of time, but would like the capital either to come back to them personally or to pass to a designated family member or others at the end of that time.
The Charitable Remainder Trust
Benefits of the Charitable Remainder Trust – A sizable income tax charitable deduction can be taken in the year the trust is created.
- Generally, no income tax is paid even if there is a transfer of appreciated assets.
- The deduction for a gift of appreciated securities held for more than one year is based on the full market value, rather than on the basis (cost).
- If the trustee sells the trust property, any capital gain is tax exempt to the trust.
- Both probate and estate taxes can be saved because the Charitable Remainder Trust is not subject to executor's fees or the probate costs in most states. Assets transferred to a qualified charity through the trust will be partially or totally deductible for estate tax purposes.
- If the Charitable Remainder Trust is set up as part of a will, it can provide significant income for the life of one or more beneficiaries.
