1. in God’s People’s Hands” Presented by FAITH FUNDING Associates
“Keeping God’s Money
in God’s People’s Hands”
Presented by FAITH FUNDING Associates

2. You work hard all your life to provide for your family
You save for your family, you give to your church, you are a good steward. You do the best you possibly can to leave an inheritance.
Something deep inside of you says “Maybe you could do a little more,” but you don’t know what to do or where to turn to find the answers.
Sadly, you realize that regardless what you seem to do, the government is still going to get a major portion of all you have worked so hard to leave.

3. Your Inheritance Who do you want to benefit from it?
Probate Courts and the IRS or
Your Heirs and Your Church

4. What We Are Going To Discuss
Estate Planning options that are available
What estate planners can do to help
Scenarios that show the maximum distribution of inheritance to the family instead of the government or those involved in probate
How you can include contributions to your church or charity out of inheritance funds

5. Estate Planning Options
Option 1 - Do Nothing
60-70% of all Americans choose this option
People will spend 35 to 45 years working and saving yet not spend an hour or two on planning the best way to distribute their estate
When you do nothing, you are putting your estate through probate process called intestate
Intestate means the laws governing the distribution of your estate applies – not your wishes as would be done with a last will and testament or trust

6. Estate Planning Options
Option 2 – Get an Attorney
Attorneys are great for setting up wills so assets are directed to whom you designate
A will is important if there are minor children under the age of 18 or there are large creditors. An attorney is not required, but you may find it necessary, depending on the size of the estate
All wills are open records and open to public scrutiny
Wills take from several months to several years to probate
Administrative costs and attorney fees in middle class estates can be as much as 5-10% of the estate
Heirs may be subject to income taxes on certain liquid assets at their current tax rate.

7. Estate Planning Options
Option 3 – Consult an Estate Planner
Estate planners can guide you in the best way to set up your estate
They assist in restructuring or reallocating assets in such a way that it may be possible to avoid probate
They also help you pass along liquid assets to heirs so income taxes are greatly diminished or even eliminated
Estate planners are usually not attorneys and as such, cannot give legal advice
They are experienced in helping people use new tax laws for more efficient estate distribution

8. Estate Planners
Most estate planners work with financial service companies and are compensated by them and not by the client
Estate Planners work with “leave behind” assets rather than “living now” assets
Estate Planners recommended changes that avoid probate, diminish or eliminate taxes to heirs and increase the distribution of the estate
Following the advice of estate planners, in many cases, may totally eliminate the need for the family to retain attorneys during the probate process

9. Why Estate Planning? Maintain control of your assets
Keep decisions within your family in the event of incapacitation
Protect assets as allowed by law
Avoid probate whenever possible
Pass inheritance along to heirs with diminished or eliminated taxes
In some cases, increase the size of the heir’s inheritance

10. What Determines Probate?
Any Gross Estate in Excess of $50,000
Land, Home, Car, Equipment
Investments, Insurance, Annuities
CD’s, Cash, Savings Bonds
Personal Property, Business Interests
Accounts Receivables
These may escape federal taxation, but may be included on IRS Form 706 and subject to probate

11. IRS Form 706 Federal Estate Tax Return
Lists all assets owned by the decedent at the time of death
Determines the dollar value for the estate to be probated

12. Typical Probate Scenario
Form 706 Itemizes Estate
Estate escapes federal taxation
Will is probated with help of an attorney
Costs to probate amount to 5-10% of estate
Some assets escape further taxation
Final disposition of the estate is reduced

13. This just doesn’t seem right, does it?
The Final Disposition
Heirs do not receive the full portion of what was designated for them
Probate costs and professionals get the rest
This just doesn’t seem right, does it?

14. Alternative Probate Scenario
Form 706 Itemizes Estate
Estate escapes federal taxation
Will or Trust is probated
Minimum Cost to probate estate
Most assets escape further taxation
Liquid assets are passed on to heirs, tax free
Amount of estate is intact or increased by the final disposition
Funds are available for charitable giving

15. Doesn’t this make better sense?
The Final Disposition
Heirs receive what was designated for them
Charitable contributions are made in your name
The probate courts are cut out of the loop
Doesn’t this make better sense?

16. If you could conserve 10-25% of the value of your estate, what could you do with it?
Provide additional funds to your children
Provide an endowment or some other financial legacy for your church or school
Establish an education fund for your grandchildren
__________________ (You fill in the blank)

17. Here is an example CASE NO. 1 79 year old female CURRENT SITUATION
Assets: Home ,000
Annuity ,000
Savings Bonds ,000
Total Estate ,000
Probate Fees ,000
Tax to Heirs
209, NET ESTATE BEFORE
Confidential Review
THE SOLUTION
Reallocated Funds ,000
Total Estate ,000
Tax to Heirs no taxes to heirs
293, NET ESTATE AFTER

18. Another example CASE NO. 2 68 year old male CURRENT SITUATION
Assets: Home
Bank CD’s ,000
IRA ,000
Total Estate ,000
Probate Fees ,900
Tax to Heirs (may be more)
332, NET ESTATE BEFORE
Confidential Review
THE SOLUTION
Assets: Home ,000
Reallocated Funds ,000
Stretch IRA ,000
Total Estate ,000
Tax to Heirs , only taxed on RMD
410, NET ESTATE AFTER

19. Another example CASE NO. 3 71 year old male CURRENT SITUATION
Assets: Home
Bank CD’s ,500
Savings ,000
Total Estate ,500
Probate Fees ,450
Tax to Heirs )
85, NET ESTATE BEFORE
Confidential Review
THE SOLUTION
Assets: Home ,000
Reallocated Funds ,000
Total Estate ,000
Tax to Heirs , (only taxed on savings)
100, NET ESTATE AFTER

20. Summary What is the secret?
Total Estate Net Estate After Review Difference
Case No , , , ,000
Case No , , , ,300
Case No , , , ,750
What is the secret?

21. The Secret?
There isn’t one Our tax laws allow anyone to make changes that are in their best interest. Unfortunately, most people are not aware of the options available to them.
Our goal is to help you avoid probate, to reallocate your existing assets in such a way that your heirs get the full benefit of their inheritance, and to assist you in providing an on-going legacy for the Kingdom.
What would work best for you? That remains to be seen. We work with each client to find the best solution for them.

22. What Can You Do?
Consult a professional to determine if a trust is needed or if a will is sufficient
Give consideration to gifting options
Create the legal documents
Create Healthcare Power of Attorney
Create a Directive to Physicians
Reallocate Assets to maximize the estate
Update records periodically

23. Can We Help YOU?
Probably. But we never know until we sit down with each family. It may take several sessions to sort out all the options, so don’t expect a quick fix.
If you have an interest in speaking with us, we will schedule a free confidential review of your situation to help you determine which options are best.

24. FAITH FUNDING Associates in partner with
Personal Financial Advisors/Estate Planners
(We are not attorneys and do not give legal advice)

25. What About Faith Funding?
Dr. Stephen E. LaFleur is the founder and director of Faith Funding Associates. As a bi-vocational pastor/financial advisor, he recognized the need for the church to better conserve its assets and plan for the future.
Faith Funding was formed to assist church members in better estate planning so that the maximum inheritance is passed to heirs instead
of funding more government excesses.
The desired result is for a greater portion of estate planning to include churches and charitable organizations so that God’s Money Remains in God’s People’s Hands.
Copyright 2009
All Rights Reserved
Licensed in the State of Texas

26. Faith Funding Associates
PO Box 14711
San Antonio, Texas 78214
National Message Center
Texas Line

27. Referral Compensation
Many pastors work in bi-vocational positions and rarely have adequate retirement programs. Many churches have limited resources to help pastors with their own estate planning. To assist in this area, Faith Funding will pay a small stipend to pastors and to members in the name of their church.
For Pastors – stipend based on each referral that leads to a seminar and generated business. Pastor may accept or defer the payment to the church.
For Members – stipend based on each referral that leads to a seminar and generated business. Payment is made out to the church or non-profit as directed by the member, with no stipulations as to the usage.
For Churches – company practice is to return 10% of company profit back to the participating churches, without any stipulation as to the usage.