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The Parish Messenger
November 1998
Comments on "In the Beauty of Holiness"
In the last newsletter I wrote of the particular style of worship here at
"St. B's." It appears our style is more "contemporary" than I had
imagined. Two items popped up in the last few weeks which re-enforce my thoughts.
The first was brought to me by Fr. Kilby, a retired priest who assists at St.
Andrew's. Fr. Kilby had attended a conference on "contemporary" worship. He
stated that the leader of the conference said that today's youth and those upcoming are
looking for something more than the liturgies they are presently experiencing and went on
to outline a liturgical experience which sounded to Fr. Kilby amazingly similar to a
"traditional" Anglican service.
The second came by way of the internet in the form of quotes from the former
Dean of Norwich Cathedral published on the homepage of "Church Times," an organ
of the English Church. I quote:
"Private prayer can be expressed in any way natural to us; God is not
concerned with syntactical correctness. But public prayer is a different matter..."
"Formality may formerly have been taken to excess, but has the pendulum
now swung too far in the other direction? There seems to be a natural human yearning for
mystery; and if Christian worship does not cater for this, then can we be surprised if
people look for it in occultism and drugs?"
Seems we may be on the right track...
The Commemoration of All Faithful Departed
commonly known as
All Souls Day
The Holy Sacrifice of the Mass will be offered to the Glory and Praise of Almighty God
remembering before the Throne of Glory
all those departed who are dear to us.
Monday, November 2
6:30 p.m.
If you have not already listed the names of those persons you wish to be remembered in
this Mass, please do so quickly. Cards are available in the tract rack located in the
Narthex.
Planned Giving
By canon, the rector of every parish is required yearly to
admonish his flock to remember their parish church as they make plans for the disbursement
of their estate at the time of death. St. Barnabas has been privileged in the past to be
remembered several times in wills, something which is very much responsible for the fact
that our doors are still open.
While this has all been providential, as good stewards of the blessings God has
granted us in the form of this parish, it falls upon us to make provision that the parish,
not only remains vital and active at the present time, but that it continues in its
witness and mission to future generations as well.
To this end I am listing several suggestions for planned giving. After death it
is too late to make provision for the upkeep of your spiritual home and the brothers and
sisters in Christ who will succeed you. This step must be done now - even by those in the
prime of life. Please read the following suggestions, give them prayerful consideration
and plan ahead.
Forms of Bequests
An outright bequest comes directly to St. Barnabas Church when the donor's
estate is settled. It can be:
a specific dollar amount (such as $25,000);
a specific asset (securities, real estate, antiques, paintings);
all or a percentage of the total estate (the percentage method keeps the St. Barnabas
Church bequest proportional to other distributions)
all or a percentage of the "residuary estate" (what remains after payment of
specific bequests, taxes, expenses, and debts).
A contingent bequest becomes effective only when the primary heir or heirs do
not survive the donor. It is a "safety valve" provision, allowing for the
unexpected.
A testamentary trust is a "deferred" bequest that activates or funds
a trust when the donor's estate is settled. The trust pays lifetime income to a surviving
spouse and/or others, and then the principal comes to St. Barnabas Church. Tax changes in
1981 made the "QTIP" trust (described below) a common choice in this category.
Retirement Plans
Another option is to name St. Barnabas Church as the last beneficiary of a
retirement plan, such as an Individual Retirement Account (IRA), in case the primary or
even secondary beneficiaries do not survive them. This opportunity also exists with
company pension and profit-sharing plans, 401K and 403b plans, and KEOGH plans.
Technically speaking, gifts to St. Barnabas Church of deferred compensation are not
considered to be charitable bequests, because, in part, they pass outside the donor's
Will. However, many donors have realized that these assets can be subject to both income
and estate taxes, leaving little for their heirs. By naming St. Barnabas Church as a
beneficiary, donors can have the satisfaction of knowing that any unused funds will pass
in accordance with their wishes to a worthy cause. Whatever St. Barnabas Church receives
is free of both income and estate taxes.
Life Insurance
Some benefactors have named St. Barnabas Church as a beneficiary of insurance
policies on their lives. As with retirement plan benefits, proceeds coming to St. Barnabas
Church from matured life insurance policies are not charitable bequests, because they,
too, pass outside the donor's Will. Nonetheless, life insurance policies play an important
role in the St. Barnabas Church Bequest Program, and proceeds qualify fully for estate tax
benefits. St. Barnabas Church can be named principal beneficiary, co-beneficiary, or
contingent beneficiary of a life insurance policy.
Estate Taxes
A Charitable Bequest offers significant tax benefits in settling estates, since
an outright charitable bequest, of any size, is fully deductible for federal estate tax
purposes. Estates of $600,000 or less are not subject to Federal estate tax, while the
highest estate tax rate tops out at 55%. In the years ahead, an increasing number of
people will find themselves with estates exceeding $600,000, and they will have to be
concerned with estate tax consequences. When real estate, life insurance, and pension
benefits are counted, surprisingly few couples, and even singles, come up short of
$600,000.
The QTIP Trust
There is a natural concern, even among those with large estates, for the
financial needs of a surviving spouse and, therefore, a reluctance to make an immediate or
direct charitable disposition under their Wills. The so-called QTIP ("qualified
terminable interest property") trust speaks directly to this concern.
A married person can provide for his or her spouse for life and provide further
that on the death of that spouse the trust property will go to the beneficiary named in
the Will, and not to someone chosen by that spouse. The trust is not subject to estate tax
in the estate of the person who establishes it. Upon the death of the spouse who has been
the beneficiary of the trust, that portion of the trust which goes to a charitable
organization, such as St. Barnabas Church, will escape estate tax a second time.
Thus, there need not be any estate tax liability in either estate on some or
all of the property going into a QTIP trust. The flexibility of this arrangement can offer
real peace of mind to those who wish to give financial protection to a surviving spouse
and provide for St. Barnabas Church's future.
An alternative method of providing both for a surviving spouse and for St.
Barnabas Church is a bequest under the Will of the survivor of husband and wife. This
means that the provision does not become effective until the deaths of both husband and
wife, thereby ensuring that the full estate will be available for the protection of the
surviving spouse. No trust arrangement is necessary.
Life Income Plans
A bequest for St. Barnabas Church can establish a St. Barnabas Church life
income plan for the benefit of a surviving spouse or another person. Upon the death of the
income beneficiary, the fund created by the bequest becomes the outright property of St.
Barnabas Church, to be used as designated by the donor. Such arrangements provide estate
tax benefits, but not income tax benefits.
The Codicil
If you already have a valid Will and now wish to include a bequest for St.
Barnabas Church, it is not necessary to draft an entirely new Will. Instead, the required
language for the bequest can usually be added by a Codicil, or amendment to your existing
Will, at only a modest cost. The Codicil can range from a simple sentence to several
paragraphs.
Attorney's Role
A will is one of the most important legal instruments that a person can have.
It reflects his or her wishes with regard to the ultimate disposition of property. The
services of an attorney whose practice is devoted exclusively or largely to estate
planning are essential in drawing up or revising a Will. State law governs Wills, and
therefore it is advisable to retain an attorney who practices in the state where you
legally reside.
Sample Language
When providing for a bequest or other testamentary gift for St. Barnabas
Church, the attorney will need to know the legal or corporate name of the parish. It is
"St. Barnabas Church," as shown in the following sample language for an
unrestricted bequest:
"I give, devise and bequeath to St. Barnabas Church, an Anglican
(Episcopal) parish in Omaha, Nebraska, ____ dollars ($____) [or ____percent (___%)] of my
residuary estate, to be used for the benefit of St. Barnabas Church as the Trustees
thereof may direct."
Bequest provisions designated for a specific program, project, or activity and
those creating trusts for survivors require additional language in the Will. Suggested
forms are as follows:
"I hereby give, devise and bequeath to St. Barnabas Church, an Anglican
(Episcopal) parish in Omaha, Nebraska, ____ dollars($____)...."For a permanent fund,
use of income unrestricted: "...to constitute a true endowment fund to be known as
the ______________ Fund, such fund to be kept invested by the Trustees of St. Barnabas
Church, the annual income therefrom, as determined by the Trustees' spending formula, to
be used for the benefit of St. Barnabas Church in such manner as the Trustees may direct.
This Fund, for the purposes of investment, may be combined with other funds of St.
Barnabas Church."
For a permanent fund, use of income restricted: "...to constitute a true
endowment fund to be known as the ______________Fund, such fund to be kept invested by the
Trustees of St. Barnabas Church, the annual income therefrom, as determined by the
Trustees' spending formula, to be used (description of restricted purpose for income
utilization--see below for examples). This Fund, for the purposes of investment, may be
combined with other funds of St. Barnabas Church. If, in the future, it is the opinion of
the Trustees that all or part of the income of this fund cannot be usefully applied to the
stated purpose, then it may be used for any purpose that the Trustees determine will most
closely
accomplish my stated purpose."
Some examples of restricted purposes of income utilization:
(Library) "for the support of the St. Barnabas Church library of theological
materials."
(Clergy compensation) "for support of clergy compensation at St. Barnabas
Church."
(Music Department) "for the support of St. Barnabas Church music program."
Canvass Potluck
Sunday, November 1st
Immediately following the 10:00 Mass
Bring your favorite dish to share
Short business meeting
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Lectionary Readings
November 1 All Saints Day
Ecclesiasticus 44:1-10,13-14
Revelation 7:2-4,9-17
Matthew 5:1-12
November 2 All Souls Day
Wisdom 3:1-9
I Corinthians 15:50-58
John 5:24-27
November 8 XXIII Pentecost
Job 19:23-27a
2 Thessalonians 2:13-3:5
Luke 20:27-38
November 15 XXIV Pentecost
Malachi 3:13-4:2a, 5-6
2 Thessalonians 3:6-13
Luke 21:5-19
November 22 Last Pentecost
Christ the King
Jeremiah 23:1-6
Colossians 1:11-20
Luke 23:35-43
November 30 St. Andrew the Apostle
Deuteronomy 30:11-14
Romans 10:8b-18
Matthew 4:18-22
November 29 I Advent (Year A)
Isaiah 2:1-5
Romans 13:8-14
Matthew 24:37-44
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