Introduction to Christian Estate Planning Guide
A good man leaves an inheritance to his children’s children, but the sinner’s wealth is laid up for the righteous. (Proverbs 13:22).
The Bible discusses money often, and it should be no surprise that the Bible’s focuses on legacies. When you think about it, the entire New Testament memorializes the Last Will & Testament of the Lord Jesus Christ (although it will probably not be His “last”). His love, His promises, and His teachings are all exemplified today through His legacy, the Church, just as He commanded in scripture. Jesus Christ has the most powerful and lasting legacy that the world has ever known. It’s a fitting specimen. It continues thousands of years after His death (and resurrection). Today, the scriptures continue to provide a road map for each and every person’s legacy, just as they have for generations. You will not be told where to leave your possessions or who you must pick as your executors, trustees, agents, etc. That is between you and God. You are the only one that knows what He has called you to do.
Identifying your legacy is the driving force for developing your written estate plan.
This self-directed three-part study is designed to walk you through the Biblical teachings on legacies as they relate to estate planning. You can take it at your own pace. Each part is directed at a different aspect of Biblical estate planning:
- Part I. What does the Bible say about legacies and estate planning?
- Part II. What does the Bible say about nominating executors, trustees, agents, guardians, and attorneys-in-fact?
- Part III. What does the bible say about my estate?
The goal is to reveal the Biblical truths that drives all Christian estate plans. The rest of estate planning is just legal jargon. At the Law Office of Merrill A. Hanson, it’s “Your Life. Your Legacy.”
Enjoy!
Part I. What does the Bible say about legacies and estate planning?
Your Life. You’re His Legacy.
At the last supper of Jesus Christ, just before He was betrayed, Jesus surrounded Himself with His disciples and taught them a new tradition – what we call communion or the Eucharist. Jesus said to them, “[d]o this in remembrance of me.”
Two key components to Biblical estate planning are remembrance and stewardship. Remembrance refers to holding an idea or creed in your heart and mind to give it prominence in your life. Stewardship refers to actions you take in response to that idea or creed. The desire to do this accurately is the reason why estate plans are written down.
Your Last Will & Testament is just that, orders alongside a final testimony. It is a public document that may be filed with the courthouse for the entire world to see. Its purpose is to memorialize your thoughts and wishes in writing and add power and certainty to your words. In many ways, it’s how you “put your money where your mouth is.” Your Last Will represents your desires of how to “spend” your money, and your Testament is your last word. Whatever you decide to do in your estate plan, your heirs will notice and remember. Your loved ones will look at what you left behind as a way to help them keep your memory alive. The question every estate planner should ask themselves is “what do I want to be remembered for?”
Let your criticisms be written in dust, and your affirmations written in stone.
–Anonymous.
Your New Testament
Your last testament is your opportunity to encourage and affirm loved ones. All throughout our lives we gather knowledge through learning and experiences. We hold concepts and ideas in our hearts and it shapes who we are and how we act. This generational wisdom can be shared as part of your testimony. You should declare to your heirs what they should know to thrive in the generation to come, and remind them of the importance of Gospel truths. This really should be done throughout life. The Bible says “train up a child in the way he should go: and when he is old, he will not depart from it.” (Proverbs 22:6). If you have spent your life investing in a loved one, they would love to have some final words of encouragement. “Teach them [children] the decrees and laws, and show them the way to live and the duties they are to perform.” (Exodus 18:20). Your testament is another chance to “show” them the way they are to live and how they are to perform. “Fathers, do not exasperate your children; instead, bring them up in the training and instruction of the Lord.” (Ephesians 6:4). If you did not make something clear during life, you can make it clear in your last testament.
Legacy isn’t about us. It’s about God working through us for His glory, not ours.
– Charles R. Swindoll
For a Christian, we are called to uphold the legacy of Jesus Christ. You’ve heard that you cannot take it all with you when you die. “For we brought nothing into the world, and we can take nothing out of it.” (1 Timothy 6:7). Writing an estate plan is the process by which you choose your last acts of stewardship to be carried out once you are gone. So, what are they? Read Ephesians 2:8-10.
For it is by grace you have been saved, through faith—and this is not from yourselves, it is the gift of God—not by works, so that no one can boast. For we are God’s handiwork, created in Christ Jesus to do good works, which God prepared in advance for us to do. (Ephesians 2:8-10)
Congratulations, you are reading this today because you are one of the responsible ones. Your master gave you a job to do. Ask yourself, “what has God made me responsible for, and what action can I take through estate planning to accomplish those goals?”
The Will
Some say the last act we are to do is to “give it all back.” This is true, but where to give it all back to is still open to interpretation. For some this means giving to the local church – not a bad idea since the local church often knows who could use resources the most and is equipped to serve. Still, a large gift of money has the power to destroy. You should determine whether your gift will serve someone or destroy them.
The kingdom of God encompasses the church at large, all missionaries and ministries, plus orphans and widows. You and your God are the only ones that know where you are supposed to leave the reigns. God made you with unique passions and interests so you could serve in His kingdom in your own special way. What is it?
For many, entire lives have been spent investing and training up children. For these, their familial lineage is the right place to direct the awesome resources God entrusted to them. God has told you who is worthy to carry the torch forward. Who is it?
- A strong local church is a good legacy.
- Bequeathing a Christian worldview is a good legacy.
- Helping the poor and needy is a good legacy.Saving souls is a good legacy.
- Engaging with the community is a good legacy.
- Teaching children to do the same with and through your literal estate plan, is a good legacy.
In summary, estate planning less about how much wealth you have, but instead about why you have it. What you are going to do with it is between you and God. You should put it in writing.
Part II: What does the Bible say about nominating executors, trustees, agents, guardians, and attorneys-in-fact?
Who do you trust?
Who can you entrust with your most precious possessions? Personal well-being? Family?
A good estate plan will require the nomination of a representative to act on your behalf, and you will additionally be asked whether you want to list any alternates in case your first choice is unable to do the job. For some, the nomination of executors, trustees, agents, guardians, and attorneys-in-fact is the most difficult stage of the estate planning process. This is caused by the gravity of the position, and sometimes a deficit of trustworthy individuals in a person’s life.
What does it mean to trust? Trust means you hold a “firm belief in the reliability, truth, ability, or strength of someone or something” (see “trust”). The degree in which you feel you can trust someone depends upon the gravity of the task you are entrusting the individual to carry out. For example, you will trust almost anyone to make a hamburger for you, but you are likely to be more selective if shopping for someone to do surgery (Are they a doctor? Have they done this before? Are they new?).
When we talk about trust, we are really talking about stewardship. Recall the Parable of the Master Going on a Journey that Jesus taught us (it’s short, you could read it: Matthew 25:14-30). After entrusting servants with bags of gold in various amounts (according to their ability), the Master goes on a journey for an unknown period of time, then returns to settle the accounts with each servant. The Master says “well done, good and faithful servant!” to those that did well with what was entrusted to them. To the one that hid the Master’s gold in the ground and merely returned it without interest it was said, “you wicked, lazy servant!” Jesus goes on to tell us that we too have been entrusted many things from our Heavenly Father, and we do not know when our Master will return. Take a moment to inventory your life. When you think about it, you are already a “trustee.”
Try our Personal Inventory Tool.
Christians have been charged to make the best of what they are given, and they also have a responsibility to ensure their families are being cared for and adequately maintained. The Bible says “all must provide for their own first, especially their own family.” (1 Timothy 5:8). Also, parents are to provide for their own children. (2 Corinthians 12:14). How can you locate someone you trust to continue to serve in your absence? There are two ways:
- You find them somewhere out in the world and invest in them, or
- You make them yourselves.
In either event you are essentially looking at the process of discipleship, as modeled by Jesus Christ and the Disciples, the process by which a person follows and learns from a teacher, leader, or philosopher (see “disciple”, see also, e.g., the New Testament). The bottom line is that your trustee must be trusted to do exactly as you provide in your estate plan. If there’s something grey or ambiguous, they must be trusted to fill in the gap appropriately. They must know what you would want to be done under special circumstances, if such circumstances were to arise. Here are some general qualities of good trustees:
- Trustees truly care about your priorities, with enthusiasm, and demonstrate their commitment.
- Trustees truly understand your priorities, your mission, and can articulate it.
- Trustees must be objective, impartial, and not prone to special interests, temperamental bias or personal whim.
- Trustees must have the basic skills and core competencies to pursue your plan, such as management skills, investment experience, budgeting, legal expertise, or the wisdom to know when to seek help.
- Co-trustees must be team players, able to resolve personal differences with others, and ready work as a single unified body.
- Trustees must be ready and willing to work, understanding the scope of their responsibilities, and able to adjust their personal schedules to accommodate the time and energy to serve in their role.
- Trustees must have practical wisdom, can keep the big picture in mind, distinguish between principle and expediency, and translate your ideals into solutions in the “real” world.
- They should be younger than you, because they must live longer than you.
In summary, selecting executors, trustees, agents, guardians, and attorneys-in-fact is just as important is determining where you want your things to go. Pray for guidance, invest in others, monitor people’s stewardship in life, and make a decision.
Part III: What does the bible say about my estate?
The process of estate planning combines “remembrance” and “stewardship.” Stewardship really means management of another’s resources, like the Parable of the Master Going on a Journey (Matthew 25:14-30), discussed earlier, except God is not interested in our money, He already owns everything. “The earth is the Lord’s, and everything in it, the world, and all who live in it.” (Psalm 24:1). What’s the big deal about having a will or trust to distribute your money then? Read Matthew 28: 19-20.
Therefore go and make disciples of all nations, baptizing them in the name of the Father and of the Son and of the Holy Spirit, and teaching them to obey everything I have commanded you. And surely I am with you always, to the very end of the age. – Jesus Christ
(“The Great Commission,” Matthew 28: 19-20)
It’s never been about the money. It’s about winning souls for Jesus Christ (although money can certainly be a part of that process). It’s about responding to Jesus’ Last Will & Testament and making an impact in this world with all that you are and all that God has entrusted to you. The Bible provides the framework for understanding possessions, what to do with them, and how they affect our relationship with God. It’s about responsibility. How will you answer God’s call?
What about leaving resources to an unbeliever? Clearly, if an unbeliever is not familiar with the Great Commission, then the likelihood of your assets being reinvested in God’s kingdom are small. The risk of compromise is high. You are almost guaranteeing that money left to an unbeliever will be used for sin, evil, or to the whims of Satan. That may sound harsh, and it is, but the reality of the matter is a definite possibility. This perspective should be in the mindset of every believer.
What about leaving resources to a “carnal” Christian? Carnal here refers to the passage in 1 Corinthians 3:1-3 where the apostle Paul uses the term to describe a Christian as living in the flesh, rather than having an eternally focused heart. This is trickier than the decision to leave resources to a non-Christian, because at least a carnal Christian has trusted in Jesus Christ for their salvation, but will this kind of person have the fortitude to handle the charge you would potentially leave them with? Read The Great Commission in Matthew 28: 19-20.
Will money be an obstacle for those you leave it to? Do they have the wisdom and maturity to handle the power money provides, or will it destroy them and empower sin? The financial guru, Dave Ramsey, is credited for pointing out that money will magnify the person you already are. Of course, this is not an original idea of his, but it is a great summary of the Parable of the Prodigal Son in Matthew 15:11-32. Take a moment to read this Parable yourself.
To summarize, the young son asked for his share of his Father’s estate early. Not long after that, the younger son got together all he had, set off for a distant country and there squandered his wealth in wild living, including “with prostitutes” (v.30). Later, after a time on pig-row, the son shamefully returned home having learned a lesson, and to his surprise, there was a celebration because he had a new life.
This story raises some important questions for the estate planner. For example, would large inheritance prevent your loved one from learning important life lessons (i.e.: the intrinsic value of working as described in the Proverbs)? One difference between this story and that of the story of an estate plan is that after you pass away, your prodigal child will not have a parent to return to. You cannot control what is in your loved one’s heart, and you cannot ensure the outcome when you’re gone.
Even more difficult for some is the answer the question, “Are your children fiscally responsible?” In other words, can your loved ones be trusted to manage assets wisely enough to support themselves and also invest in God’s kingdom? You know you want them to be, and you know you want them to rise to the occasion, but, are they? Are you prepared to take their inheritance away from them? Are you prepared to invest your time and energy to disciple them and prepare them for the awesome responsibility you hope to leave them with?
It would be remiss to write about inheritance without mentioning the wisdom of Solomon on earthly toiling. Read Ecclesiastes 2:17-19. “So I hated life, because the work that is done under the sun was grievous to me. All of it is meaningless, a chasing after the wind. I hated all the things I had toiled for under the sun, because I must leave them to the one who comes after me. And who knows whether that person will be wise or foolish?” (Ecclesiastes 2:17-19). Notice, of course, that “under the sun” is there as a qualifier. Those things sown in heaven are not considered “under the sun.” Do not focus too hard on earthly (“carnal”) things. Instead, contrast this with someone who had the pleasure of knowing Jesus Christ and learning the Gospel message:
Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal. For where your treasure is, there your heart will be also.
(Matthew 6:19-21).
Do you feel like you spend your days toiling under the sun without any gain? Many of us do from time to time, but consider this, “[t]o the person who pleases him, God gives wisdom, knowledge and happiness, but to the sinner he gives the task of gathering and storing up wealth to hand it over to the one who pleases God. This too is meaningless, a chasing after the wind.” (Ecclesiastes 2:26).
Invest in God’s kingdom, wherever He is calling you to give. Do not forget that your hands are the first executors of your estate. You do not have to wait until you die to give gifts or to invest in the kingdom.
God calls on each of us to invest wisely in His kingdom according to His wishes, which He has called each of us uniquely to participate in.
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