People Are More Important Than Money
When we hear the term estate planning, we may think about wills, trusts, probate, taxes, and property ownership. While those encompass the mechanical process of estate planning, for a Christian estate planning is spiritual first—before it becomes mechanical.
As we understand God’s plan of stewardship for our estate, we must also consider the decision and its impact that our estate plan will have on the lives of the people we love.
To avoid taxes or probate, many Christians unknowingly create situations which have the potential to cause interpersonal family conflicts among the beneficiaries of their estates.
Here are some questions for your consideration:
1. Who should serve as a personal representative of my estate?
Many Christians name a son or daughter as a personal representative (executor/executrix) of the estate or trustee of their living trust. This is often done because of tradition, with very little consideration given to potential conflicts. To avoid potential conflicts between family members, consider naming an individual who does not have a vested interest in the estate—possibly a bank or trust company—to serve as personal representative.
2. Can I name all my children to serve as co-representatives?
Perhaps this too could cause conflict, or at least inconvenience. There are often documents to sign and notarizations required. If children live in different areas, coordinating efforts can become difficult. Plus, should the siblings disagree, your estate could still end up in court.
3. When deciding guardianship, have we considered spiritual lifestyle?
If you have minor children or family members unable to manage assets, the most important reason for you to have a will is to name guardians for these individuals. Tradition causes many to believe that this must be a family member, regardless of lifestyle or where they may live. While family lifestyles vary, selecting an environment based on spiritual considerations may be more important than bloodline. Do not overlook the possibility that a Christian brother or sister within your church might be a stronger choice.
Likewise, naming a trustee to oversee financial distributions for children might best be assigned to a third party who has no vested interest. This avoids feelings that a related trustee is some sort of substitute parent standing in between the child and his or her money.
4. How do we distribute valuable family heirlooms?
A will or trust covers most of the assets an individual holds, even though many items are not specifically named In the documents. We suggest that a letter of instructions be kept with your will or trust document to address the distribution of specific items of family value—sentimental or financial. Grandma’s rocking chair, Mom’s wedding ring, Aunt Tillie’s quilt—these things are often valued more emotionally than financially. By taking the time to write specific instructions in your own handwriting, you may provide the greatest love letter that you can write to your children.
5. What is a Durable Power of Attorney?
Danger of interpersonal conflicts arises when an individual becomes incompetent and management of property must be established. When a child is responsible for taking a parent to the conservator court to obtain legal authority to transact business, it can create the potential for conflict among other family members. By including a Durable Power of Attorney to manage property in case of incompetency, you provide the tool that allows management by someone you trust. Consider the advantages of a Revocable Living Trust to provide for this contingency.
6. What about a Durable Power of Attorney for Health Care?
A Durable Power of Attorney for Health Care generally outlines an individual’s desires for medical intervention and provides instructions regarding who may make healthcare decisions in final days of life. In your state, a Living Will and a Directive to Physicians may also be an important part of your plan. These documents allow you to express your desires and reduces the need for family to make painful and emotional choices.
We believe that people are more important than money. Addressing these issues makes your Estate Plan spiritual before it becomes mechanical.
How We Can Help
Our offer for September is our popular special planning report, Your Estate Planning Guide, including our estate inventory form. Many ministry partners have found the guide to be very useful in gathering the necessary data to review an estate plan or create a new one.
