Financial experts estimate that Americans spend 20–30 years accumulating assets and the next 30 years trying to preserve them. On average, however, an individual spends less than three hours planning what will happen to those assets upon his death.
Barry Bledsoe, president of The Baptist Foundation of Alabama (TBFA), said having legal and financial affairs in order is something everyone needs to do, regardless of age. “Whether we’re 20 or 80, we all need to make a plan for what will happen to our assets when we die or are unable to manage them ourselves,” Bledsoe said.
But many people are frightened by the prospect of writing a will, primarily because it forces them to face their own mortality and make difficult decisions regarding the distribution of their estate. Sometimes those decisions involve family members who are not Christians or financially irresponsible.
“We see a lot of senior adults who are really torn [regarding their estate-planning decisions],” said Randy Driggers, who as TBFA vice president for development works primarily with planned giving. “They struggle with it. They pray about it. They turn it over to the Lord. Then they agonize some more, and often they procrastinate and put it off until it’s too late.”
But Driggers stressed that estate stewardship is just as important as tithing. “Our assets belong to God, not to us,” he said. “If God owns everything and we’re merely stewards, doesn’t that put us in a position to be more responsible in taking the time to prepare our estate?”
The term “estate” refers to everything a person owns, including property, retirement accounts, insurance policies and anything else with monetary value. “When we die, everything we own goes to other people in one of three ways — by right of survivorship, by contract or by will,” Bledsoe said.
The right of survivorship means that anything owned jointly goes to the person named as joint owner, which is usually a spouse or child. Houses and bank accounts often pass in this way. Retirement accounts and life insurance policies pass by contract because these accounts require that the owner specify a beneficiary. The beneficiary can be the account holder’s estate but only if it is in writing.
A will is a person’s last opportunity to distribute assets to family, friends or organizations. Very few assets, however, actually pass by will because many assets are either jointly held or have a designated beneficiary, Bledsoe said.
“If you co-own a home with your spouse but you state in your will that the home should go to your children, your will is ineffective. Likewise if you write in your will that you want an IRA to go to the Alabama Baptist Children’s Homes but you have your son named as the beneficiary, by law, the son gets the IRA. A will is the only opportunity we have to make charitable gifts if we choose to do that, but it has to be done correctly,” Bledsoe said.
Driggers said Christians should take steps to make sure gifts and assets are given as God would want them to be given. “A lack of planning can be a lost opportunity to fund the Lord’s work,” he said. “Many people may say they want to leave something to the church but words aren’t enough. Our final wishes need to be in writing.”
While individuals can do their own paperwork, Bledsoe said lawyers, accountants and bank officers can be very helpful in putting together a solid plan that will be easily enacted after a person’s death.
TBFA is also a resource for individuals looking for help. While the foundation does not write wills, staff members can help individuals construct language for gifts to Baptist entities. The Foundation will also serve as the executor of the estate for Alabama Baptists who agree to leave 10 percent of their estate to Alabama Baptist causes.
Considering estate planning can be difficult, Driggers said, but the process does not have to be morbid. In fact, he said, planning one’s will can be one of the most joyous occasions in the Christian walk.
“I have watched several Alabama Baptists express great joy as they planned their gifts to the Lord’s work after their deaths,” he said. “The one common factor in all the work we do in helping people properly plan their estate is the sigh of relief that it is finally complete.”
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