“Everything that we are, everything that we have, every talent, all our time, all our treasures are all gifts from a loving Creator who made us and gave us management responsibilities.” Testimonies Vol 9 page 245.
Estate Planning is the process by which arrangement is made for the proper use, conservation, and ultimate distribution of one’s assets. A good estate plan provides for the wise utilisation of a person’s property while life continues, and for the orderly distribution of the estate, in accordance with the owner’s wishes and family needs at the time of death. Estate Planning will provide peace of mind and serve as a witness of your gratitude to God for His blessings, and your faith in Jesus Christ as your Lord and Savior. The Last Will & Testament or a Living Revocable Trust is the heart of the Christian Estate Plan.
Estate Planning for a Christian
As God’s steward, we are accountable to the Lord for His property. While we are alive, we must use God’s property wisely and consider it our duty to plan who these assets should go to upon death. This is in keeping with good stewardship principles and practice. The Estate Planning process must be approached prayerfully and with much counsel from those who not only have the necessary technical expertise but also possess “…experience in the truth and knowledge of the divine will”. Counsels on Stewardship p. 330
Goals of Estate Planning
With a thoughtful estate plan a person can, in addition to saving on estate taxes and transfer fees and charges, achieve the following goals:
- Make provision for children. Parents desire their children to be financially provided for and looked after in a sensible and flexible way. A good estate plan can remove some restrictions placed on how assets should be utilized so that the children can benefit from them.
- Appoint guardians. Minor children do not have the civil capacity to do certain legal acts like accepting a gift, receiving insurance proceeds or entering into a contract. Guardians for their person and property are needed to ensure they are properly assisted ad attended to.
- Protect Dependents. A person can have some dependents who may lose out if there is no estate plan. They might include the spouse and/ or any other relative outside the immediate family but who might be living with the person.
- Make gifts and legacies. This is one function of an estate plan for a believer in God, or a person with a philanthropic heart. With an estate plan, he or she can leave gifts of money, appreciated assets or items to his or her church and/ or charities.
THE IMPORTANCE OF ESTATE PLANNING
An Estate Plan can serve several important purposes:
- Providing for one’s own needs and security including retirement
- Providing for members of the family and other relatives
- Planning for special family needs and situations
- Providing for other people directly or through charitable organisations
- Providing for the cause of God
Estate Planning Tools:
Once an individual has decided or considered the best ways to transfer his or her assets to others, he or she can choose any or a combination of the following tools of estate planning:
- Outright gifts (Lifetime gifts or Donations)– An outright gift is a transfer of assets made during the lifetime of a person. Thus it is otherwise known as a lifetime gift, as contrasted to the passing of property upon or after death by will or by interstate succession. One can make gifts to his/her family, friends and other parties while living and have the pleasure of seeing the recipients enjoy those gifts. Donations are easy enough and they can be very useful to the church in spreading the gospel apart from taking one’s family.
- Last Will and Testaments – It is a document written by a person where the person states how his/her property should be distributed after he/she dies, amongst other things. Under one’s will a person can divide property and direct who to receive share, Provide for special needs. (Some children, due perhaps to a lingering illness or flawed condition, need to give more than the rest), reward services, set up trusts, name guardians for minor (or incapacitated) children.
PGTS, encourage Church members in having a Christian Will, not just a Will. A Christian Will is one where an individual has made provisions to dispose of his/her assets to his/her family members and has directed the distribution of a portion of such assets towards God’s work. “In disposing of your property by Will to your relatives, be sure that you do not forget God’s cause”, (Counsels on Stewardship, page 328).
Trusts- A trust is established when one party (known as a Settlor), transfers ownership of property or asset to another person (known as Trustee) for the benefit of the third party (known as Beneficiary). By establishing or leaving a trust in a properly drafted document, an individual can: Provide income to himself or herself and/or to others, Transfer management responsibilities to some other person, or retain all or part thereof, in a “trust or-directed trust” (with the trustee being permitted to assume these responsibilities upon the settler’s death thus avoiding the need to appoint a guardian), Implement certain religious stewardship objectives.
GETTING READY TO PREPARE YOUR ESTATE PLAN
To ensure that your estate plan meets your needs and desires, prior to the preparation of any documents you will want to gather some personal information and make several important decisions.
- List your aspirations for your legacy. In general terms, what desires do you have for the things you leave behind? What would you like your assets to do for those you choose to support?
- Make an inventory of your assets. Include things you totally own, partially own, partnerships, investments, real estate, bank accounts, insurance policies, personal property, liabilities, etc.
- List your beneficiaries and their information, including notes about what you would like each to have or what you would trust each one to handle. Include individuals you wish to list as guardians if you have children who are under 18.
- Gather official documents you may need before meeting with your representative, such as existing wills or trusts, real estate deeds, investment account information, etc.
- Select a person to follow the instructions in your Will (Executor) or Trust (Trustee).
- Note any complications, sensitivities, or other special circumstances in which you wish to receive counsel or recommendations from your PGTS representative.
With this information in hand you are ready to consult with the Planned Giving and Trust Services representative. If you have any questions or wish to make an appointment please call +263-292250681/2, or e-mail us on pgts@zwuc.adventist.org. We look forward to serving you.
Today is the best time! To start on your estate plan