Good stewardship demands proper estate planning

Posted: 10/13/06

Good stewardship demands proper estate planning

By Ken Camp

Managing Editor

Christians who die without making a will demonstrate poor stewardship, said Bill Arnold, president of the Texas Baptist Missions Foundation.

“If you die without a will, I guarantee your family will not rise up and call you blessed,” said Arnold, a certified financial planner. “The state of Texas has a will for you. But you probably won’t like it.”

Rather than allowing the state to divide assets following a death or leaving family members guessing about a deceased loved one’s wishes, Christians should give priority to estate planning as a matter of stewardship, he said.

Arnold suggests seven steps to effective estate planning:

• Know what’s in the estate.

“Write down everything that’s in your estate,” he suggested.

Even when people make an inventory, many fail to include collections that have appreciated in value or tend to undervalue real estate holdings, he noted.

• Decide on goals.

“Get a clear sense of what you want to accomplish—what kind of legacy you want to leave,” he said.

Arnold challenges Christian to “make God a partner” in their estate planning.

“I can’t quote you chapter and verse, but I believe leaving a tithe or more of an estate to the Lord’s work would bring a smile to God’s face,” he said.

• Decide what transfer techniques to use.

A financial planner can help a Christian decide the best giving technique—a bequest, a charitable trust, an IRA or a pension plan—to meet an individual’s goals, Arnold noted.

• Choose an executor.

Not only should one person be selected to distribute the assets of an estate, but an alternate also should be designated, Arnold suggested.

• Write it down.

“Better yet, get an attorney to do it,” Arnold said. Some people balk at the expense involved in having an attorney draw up a will, but he insisted the expense is comparatively minimal and well worth it.

“Put it in perspective. We’re talking about what it’s taken a person a lifetime to accumulate,” he said. “It’s like striking a match. You only get one chance to do it right. It can’t be fixed after a death without a lot of expense.”

• Keep it safe.

Store the will and other vital documents in a safety deposit box, Arnold recommended. “And make sure someone knows where it is.”

• Review it periodically.

Carefully look at a will and revise it as needed every three to five years or when events warrant a review.

“Events that would trigger a review would include a move to another state, a significant change in the tax laws, the death, marriage or divorce of someone named in the will, the birth of anyone you might want to name in the will or any significant change in assets, such as an inheritance,” Arnold said.