NTM - New Tribes Mission | Planting Tribal Churches

During the last year I have been studying about wills and trusts and though those of you that are married could benefit from some of this information. If you would like to read more or want to look for other topics in this arena please go HERE.

We also have a cutting edge online will planner that will walk you through the process step by step. This is a free service that we are happy to offer.

There are three different basic types of trusts for a surviving spouse: a qualified terminable interest property trust (QTIP), a qualified domestic trust (QDOT) or a charitable remainder trust (CRT). All three of these trusts may qualify for the marital deduction. However, there are many specific reasons for choosing one of these three trust types.

QTIP Trust

The QTIP trust is the most common marital deduction trust.

There are four basic rules for the QTIP trust:

1. All income must be paid to the surviving spouse.
2. The surviving spouse may require the trustee to invest in assets that produce income.
3. The principal may be invaded only for the benefit of the surviving spouse.
4. The trust remainder will be distributed to the beneficiaries designated under the will of the first to pass away.

A QTIP trust is excellent for protecting the children of a first marriage. The trust can benefit the surviving spouse and then will be transferred to those children.

Example – Jane Lost Everything But Betty Was Protected

Joe and Jane were married and had two children. On Saturday evenings, they often went to dinner with their friends Bill and Betty.

Joe passed away first and had a simple will. He left his estate outright to Jane. It qualified for the estate marital deduction so there was no estate tax.

Subsequently, Jane married John Speculator. John was involved in a Brazilian gold mining adventure. The entire estate of Jane was soon invested far south of the border, never to return. Jane and her children lost everything.

Bill and Betty decided to protect their estate. Bill created a QTIP trust for his half of the estate. When Bill passed away, Betty was the beneficiary of the QTIP trust. After a few years, she married Sam Speculator. While Sam was involved in the Brazilian gold mining adventure, the QTIP created by Bill provided income and protection for Betty for her lifetime. In addition, the QTIP principal was protected.

QTIP Powers and Election

There are several powers that are permitted for a QTIP. First, the required provisions are that the income be paid to the surviving spouse and principal can be invaded only for the surviving spouse. However, the trustee may choose to transfer the greater of 5% of trust assets or $5,000 each year to the surviving spouse. In addition, it is permitted to allow the surviving spouse to appoint the remainder. If the surviving spouse holds the power to appoint, he or she can direct the trust to children from the first marriage, but also could give trust assets to other persons.

A QTIP must be elected on the Form 706 Federal Estate Tax Return. It is also possible to make a partial QTIP election and to create a transfer of the balance that is taxable in the first estate. The benefit of this plan is that this amount will be tax free to family in the second estate.

QDOT Trusts

If a spouse is not a U.S. citizen, then a transfer will not qualify for the federal marital deduction. In this case it is possible to create a qualified domestic trust (QDOT).

With a QDOT, the surviving spouse will receive all income. There must be at least one trustee that is a U.S. citizen or corporation. If the surviving spouse receives distributions of principal, those will be subject to estate tax, with one exception. There is a “hardship” exception that may allow tax-free principal distributions for emergency medical care or other extraordinary circumstances.

If the surviving spouse desires to qualify for the regular marital deduction, he or she may become a U.S. citizen prior to the date for filing the federal Form 706 Estate Tax Return.

Charitable Remainder Trust (CRT)

The third option for a qualified marital deduction trust is a charitable remainder trust. The trust may be created as a two-life agreement during the joint lifetimes of the spouses or it could be created in a will or living trust to benefit the surviving spouse.

There are two different payout options for this CRT. A standard CRT pays 5% or more each year to the surviving spouse. This payout is made from income and, if necessary, from trust principal. An attractive benefit of a CRT is that it may grow tax free during the life of the surviving spouse.

Part of the CRT payments may be distributed at the lower capital gain rates. Finally, because the assets are stepped up to fair market value in the estate, the potential exists to invest in municipal bonds and pay out tax-free income to the spouse.

A second payout method is a net-income-plus-makeup unitrust.

This trust method can enable the principal to be invested for growth rather than income. Because the growth inside the trust is tax free, the surviving spouse may dramatically lower income taxes if he or she does not need the income. Rather than taking the full CRT payout and paying income tax, the spouse permits the trustee to invest for growth for his or her lifetime. If income is needed at a higher level later in life, the trustee may reinvest for income and pay the regular income plus make up the prior shortfall.

With a CRT, after the surviving spouse passes away the remainder is distributed to qualified exempt charities. The charities may be designated by the first spouse to pass away, or a power can be given to the surviving spouse to designate the charities.

This week, with no formal Bible teaching sessions, the Mwinika people have had time to think about and talk about the choice that Bible teaching has presented for them.

Taking time to think about what they've seen and heard.

“Since the beginning they have been telling us (both major religious groups) that what we are teaching is just the same as what they believe,” wrote Phil and Elin Henderson, “but now they cannot avoid realizing that there are some serious differences.

“We have been telling them all along that God’s Word is like a plumb line with which we measure all other things. Everyone has been saying that their religion’s wall was built using the plumb line of God’s Word and now we have taken the plumb line, held it against the wall and the disparity is clear for all to see.

“Now they are left with a choice. They can either say ‘Hey, my wall is crooked’ or ‘Hey, this plumb line must be broken.’”

Some have decided that they will trust God’s Word. Others have yet to make a choice. As a result, Phil and Elin have been having numerous conversations with people about the Bible teaching. And people are using media players to catch up with lessons they missed.

Soon, however, Phil and Elin will put away the old lessons. Some people who never came to the “live” teaching have been listening to older lessons because the teaching has become “the talk of the town” and they want to know what they missed.

“Those who want to hear will have to ask those who understand the message already or will have to wait for the next time we do the teaching,” Phil and Elin wrote. “We keep saying that God gives the job of telling others the Good News to people and not to media players. … Now there are people who know the Good News in the community so if people want to learn about the teaching they should go and ask those who know about it.”

After a five-week break from Bible teaching, teaching will resume one day a week.

Pray for steadfastness and boldness for those who have believed. Pray that those who have not yet believed will place their faith in Christ.

Not many tribal people have the Old Testament translated in their own language, but the Kuna people of Panama are about to join the fortunate few.

The Kuna Old Testament translation is nearing completion, scheduled to be delivered in 2013.  The Bible translators are a team of mother-tongue Kuna believers with Keith and Wilma Forster, Wycliffe missionaries overseeing the work.

NTM missionaries Jerry and Joyce McDaniels, serving among the Kunas, are excited to see the goal in sight.

God's Word in the Kuna Language

“Just think of it!” they wrote. “Soon our Kuna friends will be able to read the Psalms and all those wonderful Old Testament books in their own language for the first time!”

But illiteracy threatens to keep the scriptures out of reach for many Kuna people. Even among those who can read, many cannot read well.

So, in partnership with the Kunas, the McDaniels developed a literacy program — a series of student books, writing practice, comprehension drills, flash cards, homework papers and teacher’s daily lesson guide.

It’s designed in the hope that the Kunas will grip God’s Word in their hearts and not just their hands.

The Lord is certainly preparing the way for His Word.

Trial copies of Scripture portions, given or sold at print cost, were quickly taken.

And as news of the Kuna literacy program spread, many people who were not interested in hearing Bible teaching expressed a desire for learning to read and write their own language.

The Dao people of Indonesia do not mark time as we here in the USA do. Most of them do not know how old they are or what time of day it is. Most do not have watches or other paraphernalia that we use to mark time.

Another difference that missionaries Scott and Jennie Phillips have noted is that their young girls are given in marriage at a very early age – though exactly what age that is no one can say.

Recently a young girl named Paipedeo was given to a man named Pisangkaba. There was something different about this ceremony. For the first time the men of the village stood and shouted spiritual challenges to the new husband.

“Paipadeo is no ordinary Dao girl,” Paatoma shouted. “And you must be careful how you treat her and what you say to her,” Paatoma spoke out in a strong voice as he looked Pisangkaba straight in the eyes. “She is one that has become a child of the Creator. She has learned how to read and write and she reads God’s book every day because she knows it is the food for her soul.”

Then her father Apiyaawogi spoke to the young groom. “Other young believing women from the village have been given away in recent times also and when they were taken to other villages, their new husbands after seeing them reading God’s book daily became angry because they haven’t yet had teaching in their village and don’t yet understand what exactly those books are. We heard that they took the books and threw them in the fire as they yelled, ‘What are you doing spending all your time starring at that book? Make me a new string bag! Cook me a sweet potato!’”

Another believer told Pisangkaba that he should listen to his wife as she read the Scriptures and sing with her when she worshipped the Lord.

After the charges by the believing men were finished, many believers gathered around the couple and prayed for them, committing their marriage to the Creator.

Paipadeo will very likely be the only believing woman in her village. Pray that she will continue to faithfully read God’s Word and that she will be an example of living faith to her husband and to the others in the village.

The last month has been refreshing to say the least. We have gotten some much needed rest and I have been able to do a bunch of home projects including putting in a garden for Tina. Jake is still saying “no more van” so I guess we aren’t going anywhere anytime soon. Thanks for you prayers and support as we recuperate and get ready for a hectic month in August. I will be traveling from one cost to the other for training and meetings.