Guidelines for Christian Estate Planning Part IV: Biblical Basis for Charitable Giving

on November 2, 2011 · Leave a Comment
3496683322 03cafa2fc0 m Guidelines for Christian Estate Planning Part IV: Biblical Basis for Charitable Giving
by tray

This is the fourth in a seven-part series on estate planning for the Christian.

A Christ-centered Estate Plan does not mean we leave everything to God.  In fact, our first responsibility lies with our family (see previous articles).  But after caring for our family in whatever manner God directs, we then turn to the biblical basis for charitable giving through our Last Will and Testament or Revocable Living Trust.

God Loves People-Centered Ministries

Throughout Scripture, God expresses His concern for the less fortunate of the world—widows, orphans, infirmed, elderly, poor.   The Apostle John gives a stern warning to anyone who knowingly ignores the needy.  He questions whether the love of God abides in that person at all (1 John 3:16-17).  Paul weighs in by saying “as we have opportunity, let us do good unto all men, especially unto them who are of the household of faith” (Galatians 6:10).

Consider also the fact that Jesus entered this world and died in our place (John 3:16).   This demonstrates God’s deep concern for people (Romans 5:8).  Where God’s heart lies, so also should our concerns.

These important facts impact the charitable distributions of our Estate Plan. We need to consider a bequest to some organization or individual involved in telling people of Jesus or caring for the needy.  We fail to honor God if we fail to make this a prayerful consideration.  This does not mean that God requires a distribution to a Christian charity.  It means that we at least discuss with Him the possibility.  

God’s People Sustain God’s Work

Galatians 6:6 instructs us to share all “good things” with those who have ministered to us (see also Romans 15:24, 1 Corinthians 9:4, 14).  God even lists the Levites (the Old Testament religious workers) in the same category with the needy like widows, orphans and the homeless (Deuteronomy 14:29; 26:12).  God’s plan calls for His children to support those Christian ministries that have provided spiritual help during one’s life.  This includes a church, radio/television ministry, school, mission organization, etc.  Once again, the actual decision to include charitable distributions or not, and to what extent, needs to be made after prayerful consultation with the Lord.

Don’t Give Caesar What Isn’t His

Jesus said, “Render to Caesar the things that are Caesar’s, and to God the things that are God’s” (Mark 12:17).  Paul builds on that by adding, “Render, therefore… tribute to whom tribute is due; custom to whom custom” (Romans 13:7).  While both taught the believer’s responsibility to pay taxes, neither advocated giving Caesar what was not due Caesar.  Every Christian has the perfect right to avoid paying as much tax as possible (not to be confused with evading taxes).  We do not have an obligation to pay more than the minimum tax required by law.

In the context of estate planning, this comes into play with an estate of significant size to subject it to estate tax (death tax).  An estate large enough to incur tax can benefit from charitable bequests because such contributions avoid taxes.  Since the parameters of estate tax seem to change yearly, check with an Estate Planning professional to determine how your estate fits into current tax law. 

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Other articles in this seven-part series, Guidelines for Christian Estate Planning:

Click here for Part I: The Biblical Basis for Estate Planning.

Click here for Part II:  Biblical Guidelines for Estate Distribution (Article part 1).

Click here for Part III:  Biblical Guidelines for Estate Distribution (Article part 2).

Click here for Part IV:  Biblical Basis for Charitable Giving.

Click here for Part V:  Guidelines for Selecting Charities.

Click here for Part VI:  The Believer and Secular Charities.

Click here for Part VII:  The Believer and the Ethical Will.

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Written by TimothyWise

default Guidelines for Christian Estate Planning Part IV: Biblical Basis for Charitable Giving

Featuring Prof. B. Howard Pearson, BS ’76 In December 2010, Congress passed legislation that determined the gift and estate tax law for 2010-12 ( million exemption, with added flexibility in 2010 for decedent’s estates). If Congress does nothing, the exemption will return to million with an increased tax rate. Will Congress ever pass a more comprehensive approach to estate and gift taxes? If so, what is it likely to be? More importantly, how should one plan estate affairs under these circumstances? Professor Pearson teaches estate planning and will lead this information session on estate planning techniques under the current law and what may change in the future.

Question by just wondering: Estate Planning?
My brother in law recently passed and his wife got a check from his insurance company and its made payable to ‘the estate of xxxx xxxxx’. He did not have his estate planned out nor did he have a will, what are her options?

Any info would be great.

Best answer:

Answer by Edward W
His wife is next of kin and is, by default, the administrator of his estate.

What do you think? Answer below!

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Planning For In-Home Elder Care

on October 27, 2011 · 3 Comments

For many families with aging family members, the goal of in-home elder care is to avoid the need for long-term nursing home admission. By caring for a family elder in-home, or the home of an extended family member, the elder doesn’t have to feel like they are being abandoned or neglected in a alien nursing home. Studies have repeatedly shown that the elderly are healthier and happier when they are cared for in the comfort and privacy of their own homes.

Given the choice, most elderly would prefer to continue living in their own homes. Unfortunately, the need for considering the option of in-home elder care is often the a result of a series of unexpected mishaps and warning signs that indicate a need for some form of additional supportive elder care.

For elder home care to succeed, it’s important that to plan how the in-home medical and supportive care giving needs of the elder will be met. After a determination by family and medical professionals, has been made that in-home elder care is advisable, it is important to discuss the elder’s health care needs with family members. Determining the best type, or level of elder care is required involves evaluating home safety , the availability of local in-home care services, management of medical, legal, financial issues, and the liklihood of crisis intervention. Ultimately, a decision regarding who will be responsible for routine money management, including health insurance benefits will be required.

It is important that family members and other trusted people, understand the legal authority and directions that are set forth in legal documents which include living wills, organ donation and similar end-of-life decsisions. The elder’s medical history, financial resources, personality, relationships with potential caregivers, proximity to services and other factors are all important factors that will ultimately determine the best approach to take. One concern that frequently goes without the attention it deserves is how the elder’s home maintenance needs will be handled to keep the home in good condition. Of course, these decisions should never be made without the consent and complete participation and disclosure to the elder.

If an elder’s home care needs cannot be met with in-home elder care services, an investigation into what alternative  elder care services are available is in order.  Perhaps in-home nursing is most appropriate. On the ther hand, if they are able to remain in their own home and take care of themselves properly some considerations should be given to the kind of supportive elder care services are needed. Other choices includes that availability and preference for assisted living compared to life in a nursing home, any difficulties posed by the elder’s physical and mental health, and the best way to access community elder care resources.

Planning for long-term in-home elder care services is a difficult challenge, especially since it effects the life of someone we love dearly. Once the decision is made, however, everyone concerned will need to take time to determine how the decision will impact their own lives.

Written by SpiderWriter

When taking care of the elderly, a person must be patient, they must listen and they must help the elderly maintain some independence. Find out how to determine what an elderly patient wants with help from a board-licensed practical nurse in this free video on nursing and becoming a nurse. Expert: Dan Carlson Contact: www.myspace.com/dclpn Bio: Dan Carlson has a degree in practical nursing and is licensed out of Minnesota. Carlson worked for many years at a nursing home and specializes in working with the handicapped. Filmmaker: Christopher Rokosz

Categories: Home and Family - Tags: , , ,

Five jump-overs of estate planning

on September 20, 2011 · Leave a Comment

It is not a good thought to consider about your untimely death.  However consider the practical aspects of it – where your hard earned money will go, who can raise your children and what they should do about their inheritance.  Bad estate planning can get you in trouble.  There are many jump-overs and you should be aware of them.

Here are five such jump-overs of estate planning

1.    Leaving all your estate to your spouse

Is your estate exceeds one million?  Then this is certainly for you.

Under present law, whatever you leave to your spouse is exempt of the Federal estate tax.  In addition to this, you can leave million to anybody tax free. This number will go up to .5 million in 2009 and will be unlimited for 2010.  The figure can drop back to million in 2011.

Many people think that they should leave all their estate to their spouse.  This is halfway planning.  With this arrangement, there is no tax to your spouse but there’ll be a big hit when the spouse dies.

Let us take an example to explain this.  Suppose you have an estate of million.  If you leave your spouse everything in your will, he/she will pay no tax. Now your spouse has an estate of million. When your spouse dies he/she will inherit million out of which there is exclusion for million. The remaining money is subject to tax which is to be paid by your children.

There is one solution for this.  You should form a bypass trust.  So you’ll leave the amount of your exclusion to a trust for the benefit of your surviving spouse.  Your spouse can get all the income for health, education and maintaining the standard of living out of the income of the estate.  Your spouse can also tap the principal to the extent of five per cent or 00 whichever is greater.

On the death of your spouse the property would go to your children without any estate tax.

By filtering your assets thru a bypass trust, you save your children the tax.  So only if your estate is more than million you should face a federal bill for an estate tax.

2.    Giving your children everything in one shot

Most of the couples make an arrangement under which upon the death of the second spouse the entire estate is left to their children.  So once your children are aged 18, they will get whole assets.  This is a big mistake.  It is recommended that you should put the money in trust and they should get it when they need but their access is spread over a number of years.

So at the age of 18 they can get 5% of the estate, which can be useful for college fees and buying a car.  At the age of 21 they can get 10% which they can use for finishing their education traveling overseas.  At the age of 30 they can get 25 per cent of the estate which can be used for starting a new business.  At the age of 30 they can get 25 per cent of the estate probably for buying a house and for getting married.  And the balance of the estate they should get at the age of 35.

By making this arrangement you are allowing your children to mature and perhaps use the money for the appropriate reasons.

3.    Ignoring the disability provision

Okay, you made a power of attorney and sign it with your spouse.  However what about the disability clause?  If you become disabled or incompetent then laws of many states automatically provide withdrawal of your power of attorney.

The solution is simple –insert a clause saying that the power of attorney shall not be revoked in case of any spouse becoming disabled or incompetent.  And this can be ensured by hiring an attorney who specializes in estate planning.

4.   Ignoring Health Care directives

You should always identify other people to make Health care decisions.  So if you are not able to make that decision of pulling the plug, some family members should be authorized to do that. It is called living will. Remember, this living will is for protecting them and not for protecting you.

Normally such authorization is given to children jointly.  And if the children are under 18, you can include a third party to do this. This is because until then children lack the capacity to make such a decision legally.

5.    Failing to make a couple as Guardian

A very important clause in your will is selection of a person who will raise your kids if you and your spouse die.

Most often people make the mistake of naming one individual as a Guardian.  Suppose you have selected your brother for this work to take care of your young children.  Your brother dies accidentally.  In such a situation the contingent guardian should be the spouse of your brother.  If you do not make this selection of who will be the second guardian, your children may be pulled out of their present residence and they can suffer psychologically for this.  So its advisable to make a couple as Guardian in your will.

Go to a specialized attorney for inserting these special provisions in your will.  After all it is your money and you should ensure that it is going correctly after you.

Written by Chintamani

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