Endowment Fund

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The Process

Mission Statement

The Endowment Fund is created and exists solely for charitable purposes of the Church and for insuring the long-term financial security of the Church. Its principal objectives are two-fold: 1: to increase parishioner awareness of the long-term financial needs of our church, and 2) to lay the groundwork to sustain our church in perpetuity.

The Endowment Fund is a restricted fund and will not be used for regular budget activity.

Estate Planning

As you make estate plans, designing it involves two decisions:
Who do you wish to receive your assets?
What are the best means of distributing your assets?

In deciding the best estate planning arrangements to implementing the transfer of your assets to your chosen beneficiaries, you should keep in mind the needs of the beneficiaries, the protection of your assets and the impact of estate taxes. In addition to taking care of the needs of your family, you may wish to include your church as a beneficiary.

It is important to make all potential stakeholders in your estate aware of your desires for distribution of your assets. Stakeholders would include potential beneficiaries, such as family members, as well as legal and financial advisoris. If you wish to include your church in your estate plans, it should be made very clear to all stakeholders.

Gifts to the Tabernacle Missionary Baptist Church Endowment Fund (TEF) May Be Made in the Following Ways:

1. Outright Gift
   You can make an out right cash gift to the TEF. The gift, in addition to your tithes and offerings, can-be made on a regular basis (monthly, quarterly, yearly) or as a one time amount.
2. Your Will
   You can direct that a specified amount of your assets be given to the TEF.
3. Trusts You can create a trust during your lifetime or in your will. Trusts are very valuable instruments for managing your money, protecting beneficiaries or reducing estate tax liabilities. You can direct specific amounts to be distributed as you wish to your family, the TEF or other charities.
4. Life Insurance
   The proceeds are payable to the beneficiaries you have named under the options you selected in your policies or subsequent endorsements. Your beneficiaries maybe individuals, TEF or other charities.
5. Other Ways
   Here are other ways you can make a gift to the TEF: Life Income Gifts, Retirement Plan Arrangement, Annuities, Gifts of Stock and other securities.

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Will vs. Trust: What’s the Difference?

• Both transfer an estate to heirs, but only a trust can skip probate court
• A will becomes active only after one’s death
• A trust is active the day you create it, and a grantor may list the distribution of assets before their death in it, unlike a will
• All wills must go through a legal process called probate, and family members can contest it
• Trusts are not required to go through probate when the grantor dies, and they cannot be contested
• A will is where you name guardianship of any minor children, plus share any funeral or memorial plans or requests
• Whether you choose a will or a trust, you should seek professional advice

WILLS vs. TRUSTS

Names Guardianship of Minor Children

Can be Challenged in Court

Probate Court

Rules Around Inheritance

Active on Signing

Can be Revised

Private or Public Record

TRUSTS

NO

Not usually

NO

YES

YES

Yes, if it is a revocable trust

Private

WILLS

YES

YES

YES

NO

NO

YES

Public Record

Can a handwritten/typed, notarized, document be considered a legal document if there is no formal will?

• Michigan law: MCL 700.2502 describes the requirements of a will as:
  • In writing
  • Signed by the testator (person making the will)
  • Signed by at least 2 witnesses, or notarized (“self-proved” – MCL 700.2504)

The Endowment committee is preparing additional informational presentations and articles to promote awareness and growth of the TMBC Endowment Fund.  Correspondence can be sent to endowment@tmbcdetroit.org