When we hear the term “estate planning,” we tend to think it only applies to the rich. However, we all have an estate, and at last report, the death rate remains at 100 percent. We will not take any of our stuff with us to the grave. The Bible clearly teaches God owns everything, and we are called to be His managers or stewards (Ps. 24:1; Matt. 25:21; Luke 16:2).
The purpose of this guide is to provide you with practical information that will help you understand the basic concepts related to estate planning, point out some common pitfalls and encourage you to consider estate planning as an act of stewardship.
For a more detailed explanation of the subject matter contained in these articles, please consult a competent adviser.
Appropriate estate planning is beneficial to almost everyone. Whether we are nearing the end of our lives, contemplating retirement or young with a growing family, estate planning boils down to determining how, when and to whom we will transfer the stewardship of what God has entrusted to us when we can no longer serve as stewards ourselves.
However, every year, the majority of Alabamians who die do so without having prepared a thoughtful estate plan.
This statistic is astounding since state and federal law provides significant incentives to prepare an estate plan.
These incentives are designed to make it easy for very personal wishes to be made known and followed — wishes that deal with child custody, property distribution or leaving a legacy of Christian values. In addition, a careful estate plan will often minimize costs related to settling the estate.
What is it about estate planning that Alabamians avoid in such resounding numbers?
Some common reasons are
- Distaste for legal documents
Many Alabamians seem to have a built-in dislike of legal documents. Such documents tend to be long and difficult to understand. However, compared to the legal intricacies of settling an estate without a plan, a well-defined estate plan is easy to prepare and understand.
Most attorneys will gladly provide a summary of the contents of an estate plan to ensure the documents meet your objectives.
- Lack of understanding of God’s directives for stewardship
Throughout Scripture, we find references that speak clearly about what we are to do with the resources God provides us. It is very important to understand God’s Word on stewardship: “Honor the Lord with your possessions, and with the first fruits of all your increase” (Prov. 3:9).
“But do not forget to do good and to share with others, for with such sacrifices God is well pleased” (Heb. 13:16).
“Moreover, it is required of stewards that one be found faithful” (1 Cor. 4:2).
Life gets in the way
The single biggest reason people fail to prepare an estate plan may fall into the category of “life just gets in the way.”
For some, the day-to-day routine is “too busy” to develop an estate plan.
For others, it is the idea that no one plans to die or, certainly, no one enjoys planning to die.
Another group’s reason is “no one can know the future” — the notion that too much may change between today and the time of one’s death.
While all of the reasons for procrastinating are understandable, none lessens the reality that the absence of an estate plan can have a devastating impact on an estate and the remaining family members. A Christian estate plan should
- Express God’s plan for stewardship.
- Transfer the assets God has entrusted to you to individuals and charitable beneficiaries.
- Transfer your estate in a tax-efficient manner with as little heartache, cost and delay as possible.
To assist you in thinking through this sometimes complex and seemingly overwhelming subject matter, in the next few pages, we will cover the following topics to help you better understand it and equip you to proactively pursue your own personal estate plan:
- Probate assets vs. nonprobate assets
- Will
- Estate administration
- Laws of intestacy
- Trusts
- Federal estate and gift taxes
- Living will, power of attorney and health care power of attorney
- Stewardship of estate assets
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Order “A Practical Guide to Estate Planning from a Christian Perspective” booklet now! Call 205-870-4720, Ext. 103 or e-mail administration@thealabamabaptist.org.
By Barry Bledsoe
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