Insight Category: Impact Story

Intergenerational Stewardship: Helping Three Generations Navigate a Season of Change

At KERUX, we believe we are more than financial advisors; we are partners in the earthly and eternal journeys of the families we serve. One story that captures this mission is how we supported a family spanning three generations through a complex season of transition.

The Challenge

Recognizing the Shift

We had worked for years with a couple well into their golden years. As the mother’s health began to decline due to dementia, we recognized a looming shift. Her daughter—also a KERUX client—would eventually need to step in, not just emotionally, but legally and financially.

The Friction

Balancing Autonomy and Protection

These transitions are often fraught with emotion. It is difficult for a parent to accept a child’s help, especially during cognitive decline. We observed the tension: a mother frustrated by her limitations, an aging father facing his own hurdles, and a daughter seeking a way to lead without creating family friction.

Faithfulness in the “Earthly” details leads to “Abundance” and peace for the entire family.

The Strategy

Facilitating Order

Our role became more than just managing investments. We facilitated a meeting with all parties—mom, dad, daughter, and son-in-law—creating a space for open conversation. We explained how making the daughter a co-trustee and granting her medical powers of attorney wasn’t about taking away autonomy—it was about ensuring that mom had a trusted partner to help her navigate financial and medical decisions as her needs evolved.

We framed the transition as Stewardship, not Surrender. By establishing the daughter as a co-trustee and granting medical powers of attorney, we weren’t removing the mother’s autonomy—we were securing a trusted partner to protect her legacy.

The Result

Peace of Mind for Three Generations

By connecting the family with a trusted attorney and streamlining the legal process, we ensured that the daughter was empowered to act when the time came. This preparation proved invaluable as the family navigated:

  • Assisted Living Transitions: Moving parents with minimal financial friction.
  • Medical Events: Ensuring healthcare directives were clear and legally sound.
  • Financial Continuity: Managing ongoing needs with transparency and peace.

What began as an advisory relationship became a testament to our core belief: that faithfulness in the “Earthly” details leads to “Abundance” and peace for the entire family.

The Beauty of a Life in Order

True wealth is found in the moments where financial planning meets the needs of the heart. What began as an advisory relationship became a testament to our core belief: that faithfulness in the “Earthly” details leads to “Abundance” and peace for the entire family.

By bringing order to the chaos of transition, we didn’t just manage an estate; we protected a family’s ability to love and honor one another during their most vulnerable season. At KERUX, this is what it means to invest in eternity—ensuring that your legacy is marked not by friction, but by the quiet confidence of a life well-stewarded.

Is your family prepared for the seasons ahead?

We specialize in bringing order to the complexities of intergenerational wealth so that you can focus on what matters most: honoring your loved ones. Let’s start a conversation today about securing your family’s peace of mind for the journey ahead.

Explore a Partnership

Fiduciary Duty & Professional Advice: Advisory services are offered through KERUX, LLC, a registered investment adviser. We are held to a fiduciary standard, legally obligating us to act in our clients’ best interests at all times. This content is for educational and illustrative purposes only and does not constitute personalized investment, tax, or legal advice.

Case Studies & Illustrative Examples: The “Intergenerational Stewardship” story presented is for illustrative purposes to demonstrate our planning process and the types of challenges we help families navigate. While inspired by real-world advisory experiences, this narrative is a composite or anonymized example and does not represent the specific performance or results of any one individual client. Your experience may vary based on your unique financial situation.

Coordination of Professional Counsel: This story discusses legal and medical planning, such as Co-Trusteeships and Medical Powers of Attorney. KERUX, LLC is not a law firm or medical provider. We act as a facilitator to coordinate with your external legal and tax professionals; however, you should consult with your own qualified legal counsel and tax professionals before implementing any legal or estate strategy discussed herein.

Risks & Suitability: All financial strategies involve material risks. Faith-based financial planning has inherent limitations and may not account for every market variable; therefore, past outcomes are not indicative of future results. Actual results will vary and may include the loss of principal.

How a Donor-Advised Fund Helped One Couple Give More and Pay Less in Taxes

Learn how one couple reduced their taxes, eliminated capital gains, and multiplied their charitable impact through a $300,000 donor-advised fund gift at the peak of their income year.

Total Gift
$ 299000
Total Tax Savings
$ 99000 +

A Smart Way to Turn a Financial Peak into a Kingdom Opportunity

When approaching retirement, one couple found themselves at a financial crossroads. As they entered their final year of full-time employment, deferred compensation and bonuses projected this to be their highest-income year ever.

At the same time, they held a large position in a single stock that had performed extremely well. The gains were substantial, but the future of the stock was uncertain. Should they sell and face significant capital gains? Hold and risk a market drop?

Instead, they chose a third option — one that embodied the Faith Forward Framework and their commitment to their faith and financial stewardship: They utilized our expertise to donate $300,000 of appreciated stock to a Donor-Advised Fund (DAF).

The Strategy in Action

Event
Description
Result/Benefit
Appreciated Stock Gifted
They transferred $300,000 of long-term appreciated stock into a DAF. The stock’s cost basis was only ~$25,000.
No capital gains tax due on the ~$275,000 unrealized gain.
Immediate Deduction
Because they gifted the stock directly to charity (via the DAF), they received a $300,000 charitable deduction.
Reduced taxable income in their final high-earning year.
Double Benefit
1) Avoided capital gains tax.
2) Received a full income tax deduction for the gift.
Saved roughly $110,000–$120,000 in combined federal and state taxes.
Ongoing Investment
The stock was kept invested within the DAF. It continued to grow tax-free.
The stock appreciated further, increasing their charitable capacity.
Future Giving
The couple could recommend grants from their DAF over future years — including their ongoing tithes.
They “pre-funded” years of giving while capturing today’s tax benefit.

Timing and Strategic Stewardship: Why They Gave When They Did

Charitable deductions are limited to a percentage of Adjusted Gross Income (AGI)—typically 30% of AGI for appreciated assets. In this specific scenario, the couple’s AGI was $350,000, allowing an immediate deduction of up to $105,000 (30% of AGI) in the current year, with the remaining deduction available to be carried forward for five additional years.

The strategic timing of the full $300,000 DAF gift across two tax years allowed us to maximize their stewardship by achieving the following critical outcomes:

Maximized Deductions

They optimized the allowable deduction available in each tax year.

Smoothed the Benefit

The deduction was strategically applied into retirement years when income dropped to around $200,000 per year from pensions and part-time work.

Zero Loss of Benefit

None of the substantial charitable deduction went unused, securing the greatest possible financial advantage for their mission.

Case Study Snapshot

Year
Household Income
DAF Gift Applied
Deduction Utilized
Carryforward Remaining
Tax Benefit (Est.)
Totals
–
$300,000 total gift
$255,000 total deduction used
–
~$100,000+ total tax savings
2024 (final work year)
$350,000
$150,000
$105,000 (30% AGI limit)
$45,000
~$40,000
2025 (semi-retired)
$200,000
$150,000 (remainder)
$60,000 (30% AGI limit)
$90,000
~$24,000
2026–2028
$200,000 (each year)
–
Deducts remaining $90,000 across future years
–
~$36,000

*Exact amounts depend on marginal rates and itemization.*

Why This Strategy Worked

1. They gave at the right time — capturing a major deduction during their peak income year.
2. They gave the right asset — appreciated stock instead of cash, avoiding capital gains.
3. They gave through the right vehicle — the donor-advised fund offered flexibility.
4. They gave with the right perspective — their goal was obedience and impact, not just savings.

Stewardship That Multiplies

What makes this story powerful is not just the tax efficiency — it’s the faith efficiency. Because they planned with eternal impact in mind, their generosity will continue to flow for years to come. The stock that once represented potential risk now represents potential kingdom return.

“Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.”

2 Corinthians 9:7

Key Takeaways

Timing matters

Give in high-income years for maximum tax impact.

Asset choice matters

Appreciated stock gifts can eliminate capital gains.

Structure matters

DAFs provide flexibility for long-term generosity.

Faith matters

Stewardship is both financial and spiritual.

Summary

Without DAF
With DAF
Stock Value
$300,000
$300,000
Cost Basis
$25,000
$25,000
Capital Gain
$275,000
$0 (eliminated)
Capital Gains Tax
~$65,000
$0
Charitable Deduction
$0
$300,000
Total Tax Savings
–
~$100,000+
Control of Giving
Immediate spend required
Give over time, grow tax-free
Legacy Impact
One-time
Multi-year giving from investment growth

At KERUX Financial, we help believers align their wealth with their witness — using strategies like donor-advised funds to maximize both impact and obedience.

“Command them to do good, to be rich in good deeds, and to be generous and willing to share.”

1 Timothy 6:18

The information contained herein is provided for educational purposes only and should not be construed as investment, tax, or legal advice. Past outcomes are not indicative of future results. The suitability of donor-advised funds or any charitable giving strategy depends on an individual’s unique circumstances and objectives. You should consult with your financial advisor, tax professional, and/or legal counsel before implementing any strategy discussed. Advisory services are offered through Kerux, LLC, a registered investment adviser.