ESTABLISHING AN ENDOWMENT ACCOUNT
Individuals, couples, or families may establish their own Endowment Account and designate the use of the quarterly distribution. An Endowment Account ensures that the people in whose name(s) it was established will be remembered as people who made a difference.
The Covenant Endowment Trust can accept gifts of cash and/or marketable securities (possible tax avoidance).
Endowment Accounts may be established either during a person’s lifetime, or at death by naming an Endowment Account as a beneficiary. For a gift at death, a new or existing Endowment Account may be named as the beneficiary of a will, trust, life insurance policy, IRA, pension plan, profit/sharing plan, 401(k) plan, or other qualified plan or single-premium annuity. The Endowment Account may be established now and increased with additional funding in the future.
INDIVIDUALS CAN USE THE COVENANT ENDOWMENT TRUST IN TWO WAYS:
A gift can be made now, the account established, and the ministry begins receiving income this year. The principal remains in the Covenant Endowment Trust account in perpetuity (forever), unless the donor specifies that the principal may be paid out after a term of years.
Individuals can also name the Covenant Endowment Trust to receive a bequest from a will or trust. The account is established after death, and the ministry receives income each year thereafter.
DONORS LIKE THE COVENANT ENDOWMENT TRUST BECAUSE:
- It provides regular income to their chosen ministry long beyond their lifetime
- They know the funds will be wisely invested
- Each payout to the ministry carries the specific designation made by the donor, so changes in ministry leadership and the passing of time don’t matter
- It is an irrevocable gift that can provide a tax deduction for them or their estate
- Ministries can also use the Covenant Endowment Trust for funds already on hand
For more information or to establish an Endowment Account for Arvada Covenant, contact our local Covenant Trust Company Colorado Financial Services Representative:
Todd Mitchell
Covenant Trust Company
9153 Yarrow Street
Westminster, CO 80021
800-483-2177 (central office)
844-616-3388 (toll free-direct line)
temitchell@covenanttrust.com