Do You Need an Estate Plan?

Trick question! Everyone needs an estate plan, or at least a will. Why? Believe it or not, you have an estate. In fact, nearly everyone does. The majority (73%) of financial advisors say the ideal age to start putting an estate plan in place is before you turn forty. Much earlier than many people think. Your estate is comprised of everything you own, your car, home, other real estate, checking and savings accounts, investments, life insurance, furniture, personal possessions, etc. So, no matter how large or how small, everyone needs an estate plan. 

When you pass, and it is a “when” not an “if,” you probably want to control how those all those things mentioned above are distributed to the people or organizations you care most about. To ensure your wishes are carried out, you need to provide instructions stating who your beneficiaries will be, what exactly you want them to receive, and when they are to receive it. 

Establishing a relationship with a trusted financial advisor or planner would be a great first step. From there you should start to consider all the aspects an estate plan should include. This is not an all-encompassing list, but a general estate plan should include: 

• Instructions for your care if you become disabled  
• A named guardian for your minor children
• Provision for family members with special needs 
• Life insurance to provide for your family at your death, and disability insurance to replace your income if you cannot work due to illness or injury
• Provision for the transfer of your business at your retirement, disability, or at death
• Instructions for specific personal possessions you want to pass on
• Instructions on specific amounts or percentages of inheritance
• Gifts to the ministries and/or charities that mean the most to you
• Final messages of love, concern, gratitude, or forgiveness you wish to communicate to your loved ones. 

A well-thought-out estate plan will also help minimize taxes, court costs, and unnecessary legal fees in the end. But it is important to remember that this will be an ongoing process, not a one-time event. Your plan should be reviewed and updated as your family and financial situations change over your lifetime. 

Communication with your heirs is crucial as well. As you prepare your family for the transfer of your financial assets, be sure to also share what is in your head and your heart. Communicating wishes openly and honestly can be difficult, but directness now can help avoid conflict later. If you wish, ask your financial advisor to be present as you meet with your heirs to explain any confusing details or legalese. 

Transferring wisdom along with wealth is the best way to safeguard a family legacy that will endure for many generations. One of the responsibilities of parents and grandparents is to prepare your children and grandchildren to be wise stewards who will not just survive but thrive! Wisdom is a shelter as money is a shelter, but the advantage of knowledge is this: wisdom preserves those who have it. The best definition of wisdom I have ever heard is that “wisdom is the correct application of knowledge.” Share those life lessons you have learned with your family!

There is universal wisdom and truth we all must accept, and that is no one lives forever. And to take it one step further, when we pass, we can’t take anything with us. Don’t put off estate planning because you think it’s too far down the road, or you don’t own enough assets to need one, and then leave your family to pick up the pieces. The best time to plan your estate is now. Knowing you are prepared, that your wishes will be carried out, and your family will be protected will give you and your family peace of mind. 

Should you need any assistance planning gifts for UPCI ministries, remember the United Pentecostal Foundation is here and ready to help. We also have a comprehensive website you can utilize to learn about planned giving tools and vehicles at unitedpentecostalfoundation.com. Or, we can travel to your church and present a Life Planning seminar to your congregation to discuss all these topics and more.