Scripture repeatedly affirms the importance of preparing for the future. Proverbs 13:22 states,
"A good man leaves an inheritance to his children's children."
This inheritance is not merely financial but certainly includes finances. Consider how bizarre it would be to go to a will reading and hear that the deceased left only his wisdom to his firstborn son, just his work ethic to his second son, and nothing but an example of a godly marriage to his daughter. We are called to leave an earthly inheritance; gold, silver, property, livestock or the modern equivalents. Christian Reconstructionist author R.J. Rushdoony emphasized that godly dominion includes the proper ordering of one’s household even after death:
"The Christian man is called to exercise dominion, and this extends to the wise and faithful use of wealth, ensuring it is placed in the hands of those who will further the Kingdom."
Many families suffer due to a lack of preparation. Consider John, a devoted Christian businessman who never put a formal estate plan in place. Upon his sudden and unexpected passing, his family was forced into a lengthy probate process, during which legal fees devoured a significant portion of his assets. Worse yet, his wealth was divided according to state laws, leaving out the church and ministry organizations he had supported throughout his life. His heirs were left in financial distress, and his assets were divided according to a secular and ungodly system, an outcome that could have been avoided with a proper plan.
A simple and effective estate plan should include at least a revocable trust with a pour-over will, a durable financial power of attorney, and an advanced healthcare directive. These three elements work together to minimize legal complications, protect assets, and provide clarity in times of crisis.
1. The Revocable Trust and Pour-Over Will
The Problem
Without a proper estate plan, assets must go through probate, a process that can take months or even years, draining resources and causing unnecessary stress for loved ones. Probate can also expose financial details to public scrutiny, leaving an estate vulnerable to disputes and unwanted claims.
The Solution
A revocable living trust provides a structured way to manage and distribute assets according to biblical principles and personal convictions. Unlike a standard will, a trust allows for:
Avoidance of Probate: Assets placed in a trust bypass the costly and time-consuming probate process entirely, ensuring that your family retains control and financial stability.
Continued Stewardship: A trust provides instructions on how assets should be managed and distributed, whether immediately or over time, allowing your assets to continue to be used according to your wishes even after death.
Flexibility and Control: You can amend or revoke the trust at any time during your lifetime, adapting to changes in your family or financial situation.
The Drawback: The assets placed in a revocable trust are still considered part of your estate and will be used when calculating estate taxes if applicable.
A pour-over will complements the trust by ensuring that any remaining assets not placed in the trust during life are transferred into it upon death. This creates a seamless transition and avoids intestacy laws that might distribute your wealth in unintended ways.
Example
Sarah, a faithful mother of three, lost her husband unexpectedly. Because he had set up a revocable trust, she was able to access necessary funds immediately and continue managing their household with minimal legal interference while they waited for his death certificate so they could get his life insurance pay-out and get back to relative financial normalcy. His business assets seamlessly transitioned to their children without the drawn-out process of probate, ensuring stability in a time of crisis. His funeral wishes were made very clear in the trust, and a family friend was tasked with seeing those wishes through, taking the logistical burden off of Sarah, giving her room to grieve. The revocable trust helped to ensure the best financial and legal outcome in a tragic situation.
John Calvin himself emphasized that believers should act wisely with their possessions, writing:
"We are not the owners of what we possess, but stewards of God’s bounty."
A trust allows for faithful stewardship even beyond one’s earthly life, and clarity in those moments no one wants ambiguity.
2. Durable Financial Power of Attorney
The Problem
Imagine suffering a debilitating illness or injury that leaves you unable to manage your financial affairs for an extended period of time. Without a durable financial power of attorney, your family might have to petition the court to gain control over your finances—a time-consuming and costly process that could leave bills unpaid, assets mismanaged, and debts accrued.
The Solution
A durable financial power of attorney (POA) designates a trusted individual to handle financial matters if you become incapacitated. This is vital for maintaining order in your household and ensuring that expenses, investments, and other obligations continue to be managed according to biblical principles. It essentially does three things:
Prevents Financial Disruption: This document ensures bills, mortgages, and daily expenses can continue to be paid without delay.
Avoids Court Intervention: It protects your family from the stress and expense of legal proceedings to gain back control of your assets.
Ensures Biblical Stewardship: The appointed agent can be instructed to continue charitable giving and wise investment strategies precisely according to your wishes.
Example
James, a small business owner, suffered a stroke that left him unable to communicate. Because he had designated his wife as his financial power of attorney, she was able to access their accounts, manage payroll for his employees, and keep their business running. Without this critical document, his company may have folded, jeopardizing the livelihood of his family and his employees.
3. Advanced Healthcare Directive
The Problem
Medical emergencies often place loved ones in difficult positions. Without clear instructions, family members may struggle to make life-altering decisions, sometimes clashing over treatment choices. I have personally seen families torn apart over choices made during end-of-life care. After a car wreck, should your wife be forced to decide if you should lose your leg or risk losing your life?
The Solution
An advanced healthcare directive allows you to outline your medical wishes in advance with biblical ethics and Reformed principles. It also appoints a trusted individual to make healthcare decisions on your behalf if you are unable to do so. This document essentially does 3 things:
Ensures That Medical Choices Align With a Christian Understanding of Life and Dignity: It can help to prevent unnecessary suffering while honoring God's design for life and death. You make the preemptive decisions on medicines, treatments, surgeries, and end-of-life care that are according to your convictions.
Relieves Family Members of Difficult Decisions: Provides clear guidance, preventing emotional disputes in stressful times, so that your family members are not responsible for making those decisions for you. I know several people placed in that situation who still wonder if they made the right choices years later.
Avoids Legal Complications: Reduces the likelihood of state intervention in medical care; something I am sure none of us want.
Example
When Margaret was diagnosed with terminal cancer, her children were divided over treatment options. However, because she had prepared an advanced healthcare directive, her wishes were honored without legal dispute, ensuring she received care in line with her Christian convictions while sparing her family from further turmoil. Her children did not all agree with their mother's choices, but at least they had clarity as to her wishes.
As Gary North wrote,
"The future belongs to those who prepare for it,"
and this extends to how we manage both our wealth and our health.
Conclusion: Building a Legacy of Dominion
Estate planning is not merely a legal exercise—it is an act of faithfulness. By implementing a revocable trust, a pour-over will, a durable financial power of attorney, and an advanced healthcare directive, we ensure that our resources are used for godly purposes, our families are protected, and our legacies reflect the wisdom of biblical stewardship.
Christians must think generationally. We do not own our wealth; we manage it for God’s glory. By establishing a solid estate plan, we follow the biblical command to provide for our families and extend dominion over God’s creation beyond our lifetime. As Proverbs 24:3-4 reminds us,
"By wisdom a house is built, and by understanding it is established; by knowledge the rooms are filled with all precious and pleasant riches."
Let us be wise builders, ensuring our households are established in faith, wisdom, and financial prudence. Let us be wise testators (someone who leaves an inheritance), ensuring the wealth we build here on the earth is left in good hands, with good instructions, ensuring your legacy continues in faith.
If you want more information or would like to get your estate plan prepared, you can book a meeting with us here.
Comments