Estate planning and inheritance decisions can be made easier by gathering the right data and information. This data can be organized into three lists—people, property, and plans.
People
The first list will be the individuals you want to give some type of inheritance from your estate—but which people?
In 1 Timothy 5, Paul gave some important instructions to a young minister. While Paul probably was not thinking about estate planning, we find an important principle in the chapter that affects how we think about estate planning. The principle is that we, as Christians, have a priority to care for those who are dependent upon us for the needs of life. Paul specifically refers to widows and the members of our households—assumed to be parents, spouses, children, and others in our care.
This is a great place to start your list—who is dependent upon you? While you are at it, consider if any of the ministries you support (your church, missions, etc.) are also financially dependent on you.
What if you have few—or even none—who are truly dependent upon you? Can you still leave an inheritance from your estate? Sure. Just follow God’s lead:
“For God so loved the world, that He gave…” (John 3:16, ESV).
Property
The second list should be a list of all the assets God has entrusted to you. The goal here is to compile a clear understanding of the following:
- The assets you steward, including cash, real estate, retirement funds, business assets, life insurance, personal property, and securities.
- When the assets were acquired.
- What you paid for each asset when you acquired it.
- The approximate value of each asset today.
- How the assets are titled.
Plans
The final list is your current thinking of how you would want the assets and property to pass to the people on your list. Here are some questions to help you consider how you’d want to distribute your assets.
- Will the property be sold—converted to cash—and then distributed? Or distributed in-kind as it is?
- Should all beneficiaries be treated equally? Or is it okay to give different amounts?
- At what age would you plan to stop supporting your children?
- What about taxes?
- How will you aim to include your church or other ministries in your plans?
Of course, certain types of property may make better assets to give to individuals, and other types may be more efficiently given to your charities. Getting your lists started is a crucial step to achieving a quality plan that honors God and cares for your people.
Need a little help?
Though getting an estate plan in place can be simple, that does not always mean it is easy. If you still feel a bit stuck, contact us, and we can connect you with experienced professionals who have helped thousands of Christians through this process.
