The creation of a Church Trust is a straightforward process consisting of four phases: Making the Decision, Documenting the Decision, Living with a Passive Trust, and Activating the Trust.
Making the Decision: During this phase, Kairos helps church leaders evaluate the at-risk status of their congregation. Our goal is to provide these leaders with the counsel, professional services and resources necessary to make wise, future-oriented decisions to protect their physical assets.
Documenting the Decision: During this phase, Kairos works with the church leaders to:
- Create a comprehensive description of the property to be placed in trust;
- Identify the beneficiaries of the trust;
- Outline the responsibilities of the church while it continues to occupy the property;
- Define the responsibilities of Kairos as the trustee.
In order to serve its protective function, the Church Trust is irrevocable. The trust may only last for a brief period of time, or for years into the future; there is no pre-determined termination date.
Kairos Legacy Partners oversees the entire documentation process, including the transfer of assets into the trust. Typically, there is no cost to the church.
Living with a Passive Trust: During this phase, the church has full use of the property placed in trust and remains responsible for all of the operating expenses and maintenance. Also during this phase, the church must remain true to its heritage and values as defined in the Church Trust document.
In fulfillment of its Trustee responsibilities, Kairos will annually request copies of attendance and financial reports, and may, from time-to-time, visit the church.
Activating the Trust: At any point the church may request that the trust be activated. Kairos may also activate the trust if it determines that the terms of the trust have been violated.
When the Church Trust is activated, Kairos will liquidate the assets and distribute the net sale proceeds to the beneficiaries as previously determined by the congregation. Kairos will also oversee the termination of the church corporation in keeping with the legal requirements of the state.