July 2007 Newsletter

I trust this newsletter is finding you haveing a productive summer and planning your fall adventures into the area of charitable estate and gift planning.

Click this link for your July 2007 issue of Planned Giving Mentor in PDF format.This issue covers explanations on "Charitable Trust." You will find an explanation on how trust work, a summary of the types of Charitable Remainder Trusts, What about a Pooled Income Fund? and the Pros and Cons of serving as trustee and several marketing ideas.

Check out the "Mann and Sharpe article on Charitable Remainder Trusts" just published on the Planned Giving Design Center web site, or click the link for a pdf copy.

A complete collection of past Connell & Associated authored PG Mentor articles along with other useful items check out Planned Giving Mentor.

Connell & Associates is please to welcome Russell M. Harris FAHP, Executive Director of the Highlands-Cashiers Hospital Foundation, Highlands, NC as a new client.

Useful Links update...I have updated the Useful Links section of my web site to include six books you may find helpful as additions to your library, just click the link and you will find their listing on Amazon.com. I especially recommend the AARP Crash Course in Estate Planning as a ready resource to give to board members and prospects. You will also find helpful book titles under the Fund Rasing Resources: Baron Publishing link. Several clints have purchased quanities of the Barons books to distribute at seminars and professional advisor meetings.

News and Notes...this section covers some interesting information you can use with donors and prospects.

An insurance industry source reports there are 4.5 million people who won individual long-term care insurance and 1.9 million peole who have group coverage through a workplace or other grop. That's a total of 6.4 million people covered. that means based on recent Census Bureau reports only 2.1% of the US population owns long term care insurance. The over age 65 coverage is estimated at 8%. October is offically Long Term Care Planning month.

A senior couple retiring in 2007 needs $215,000 to pay for out of pocket health care costs based upon their 17 year for male and 20 year for female life expectancy(assums the couple doesn't have employer provided retiree health coverage). This represents a 34% increase since 2002.

So much for an idle retirement, almost four in 10 seniors plan on working until the die.(source Bankrate Inc)

NIH reports eally boomers are in worse physical shape than today's seniors were at the same age. Every 7 seconds another Boomer turns 50.

In the year 2000 1 in every 5,578 Americans were 100 years old (50,500 total and growing) [and you thought they were all in your gift annuity program].

IRA and Gift Annuity gift idea...(Note: this is a repeat from last month's newsletter which many found helpful).

When you are talking to your prospect about the unique advantages of the PPA IRA transfers to charity do not forget to mention the advantages of a Testamentary gift of IRA assets to a gift annuity for family or friends. There are several reasons to consider a testamentary transfer. First, if the beneficiary is fairly senior the gift annuity will distribute a high, fixed payment. Second, market fluctuations of IRA assets will be eliminated, Third, there will be no administrative costs to the CGA. Fourth, the gift annuity may be funded with smaller amounts, Fifth, the transfer will qualify for a partial estate tax deduction with no recognition of gain for those in a taxable estate category. It is important to note there will be no tax-exempt payments to the beneficiary since and IRA is IRD (income in respect of the decedent) and has not been taxed so the beneficiary will receive fully taxable payments and your charity will receive the residuum of the annuity agreement.

The IRA beneficiary designation would be similar to the following:

"If Suzy Jones of 123 Main Street, City, State, should survive me then I gift ($ amount or % percentage) of my IRA account to ABC charity of City, State for a nonassignable gift annuity agreement payable quarterly for one life to Suzy Jones, with a payout at the standard rate ABC charity pays to annuitants of her ages as of the date of my death." The wording is a little long but it should do the job.

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