How We Do It

Appropriate estate planning accomplishes three primary objectives for our clients: 1) predictable income for retirement, 2) low cost transfer of assets to heirs and 3) charitable impact.

Planned gifts take the form of bequests in wills, gifts through revocable living/management trusts, and/or charitable life income agreements (for the lifetime benefit of the clients/donors). At the client's/donor's death - after appropriate distributions to heirs - the remaining gifts pass directly to the charities or may establish endowments for the benefit of these ministries.

Client gifts through estate plans managed by the Foundation help fund countless Lutheran ministries including community outreach, youth ministry, eldercare, counseling, higher education, and adoption/foster care services throughout the state.

A Living Trust (also called a management trust) is a revocable legal document that, ­ like a will, ­ specifies who is to handle your affairs if you are incapacitated or after you die, and who is to receive your assets. It offers privacy, asset management and possible estate tax savings unavailable with a standard will. Whereas a will cannot take effect until death, protective provisions of a living trust can take effect upon incapacity to assure that the wishes of the individual are carried out.

Life Income Agreements enable a donor to receive a steady income stream for life or a set number of years from appreciated assets that may have been producing little or no income for the donor. These irrevocable agreements offer favorable tax treatments to the donor. The Lutheran Foundation of the Southwest focuses on four types:

Charitable Remainder Unitrusts (CRUT)

Charitable Remainder Annuity Trusts (CRAT)

Charitable Lead Trusts (CLT)

Charitable Gift Annuities (CGA)