October 28, 2002

Layman points senior-adult homeowners
to little-known means of charitable gift
___By Mark Wingfield
___Managing Editor
___An opportunity to delay rendering unto Caesar what is Caesar's could help older Texas Baptists render a bit more unto God, according to a McKinney layman.
___By taking advantage of a little-known provision in state law, Texas Baptists age 65 and older could make significant charitable contributions to their churches or other Baptist causes without incurring any additional expense, according to David Melton, a member of First Baptist Church of McKinney.
___Melton, who works for Mustang Underwriters in Carrollton, has been making presentations in Texas Baptist churches about a program called "Texas Tax Back." It is based on a provision in Section 33.06 of the Texas Property Tax Code that allows any Texas homeowner 65 or older to defer payment of property taxes until they no longer live in or own their home.
___By state law, this deferral may be exercised by filing a "tax deferral affidavit" with the local appraisal district. The property taxes are not waived, only deferred. The deferred taxes are assessed an additional fee of 8 percent simple interest annually.
___The "Texas Tax Back" program encourages homeowners age 65 and older to defer their property taxes and apply the money saved toward premiums on a life insurance policy with the church or another Baptist cause named as beneficiary.
___As an example, Melton cites the statistics for a couple currently paying $4,000 annually in property taxes. By taking the state-approved tax deferral, the $4,000 could be applied in annual premiums toward a "second-to-die" life insurance policy of $250,000. The church or other religious cause would be named as beneficiary of the policy, with a provision that the deferred property taxes plus interest would be deducted from the final amount paid the beneficiary.
___In this illustration, if the second of the couple to die lived 10 more years, the property taxes due plus interest would total $57,600. The life insurance policy would have increased in payoff value to $290,000. When the deferred taxes of $57,600 were deducted, that would leave $232,400 payable to the church or other Baptist cause.
___Meanwhile, the home itself would be free and clear to pass on to children or other heirs through the couple's estate.
___Melton and his wife, Ramona, have used the "Texas Tax Back" plan to leave a planned gift for First Baptist Church in McKinney, where their funds will be designated for future building needs.
___He strongly encourages couples considering the tax-back plan to consult with a CPA or qualified insurance agent for counsel. Information about the specific language of the tax code may be obtained from any local appraisal district or in the 2002 booklet "Texas Property Taxes" published by the Texas comptroller of public accounts.
___Melton also offers a free video about the "Texas Tax Back" plan that features an introductory segment by Bailey Stone, former director of evangelism for the Baptist General Convention of Texas. That video may be obtained by calling (800) 827-0231.
___

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