End of Life Stewardship Planning
Kay J. Confer, Certified Financial Planner, Saint Joseph MI
Provided by CN Building Adult Ministries Resource Center
The largest intergenerational wealth transfer in history is about to begin. It is estimated that $41 Trillion dollars is about to begin transferring from this generation to the next. As pastors and key church leaders we have an opportunity to educated and keep before our congregations the challenge of stewardship. Often older adults will think about what they might like to leave to the church, however, are they taking the appropriate steps to make it actually happen?
Stewardship of all that we have been given is an awesome gift as well as a responsibility. Older adults are faced with many financial challenges today, the rising cost of health care, increased cost of living and helping support children and grandchildren. While dealing with these day-to-day financial issues, it is important to not overlook setting aside time to do the needed long range planning. We always think that there is plenty of time, but that is not always the case. A few years ago my mother, who was a young 80 year old, was taken suddenly in an auto accident. We had worked hard at planning ahead, so carrying out her wishes was clear. That is not always the case. Many do not stop to think that if they fail to plan for leaving their financial legacy, others will do it for them. Others may not know what their wishes were or may decide to just ignore them.
A practical suggestion would be, making a list of the places that have been a blessing in their lifetime. After family, where have they given their time, love, attention and supported with financial resources? Most Christians understand that part of our stewardship is tithing 10% and our offerings beyond that are designated to ministries that God has laid upon our hearts. Therefore, would it not follow that God would be calling us to do nothing less with our final gifts to Him? The beauty with our last earthly gifts is that we can create “gifts that keep on giving” long after we have finished our journey. Older adults have the opportunity to share in meaningful ministries that will support their children, grandchildren and help to fulfill the Great Commission, of reaching the lost.
It has been my experience, as a Financial Planner over the past 20 years that children are often not as careful in making decisions with inherited money as were their parents with those same dollars. Often family inheritance is spent on “things”. In leaving a legacy, older adults have the opportunity to significantly give to ministries that will provide spiritual growth and guidance long after the “things” are gone.
There are so many wonderful ways today to leave a meaningful financial legacy. Here are five things to consider as we guide older adults through this process and encourage them to:
- Make a list of the places where they have been blessed over their lifetime.
- Investigate what legacy programs already exist for each of the places identified, such as endowments, trusts, scholarships etc. Seniors may want to contribute to an existing program or fund a new program.
- Make an appointment with someone from each place to identify how they might work together. They will find these people are a wealth of information.
- Utilize professionals such as attorneys, financial planners and CPA as resource people.
- Take action, once a decision has been reached. It is important to get these new plans included in the wills, trusts or as a beneficiary designation.
One great idea older adults can consider is naming the church, or charity of their choice as the beneficiary of an IRA or qualified plan such as a 401k, 401b or annuity. These can be an excellent choices; it is simple to do and may be very tax favorable for their estate. They should always check with a professional before making final decisions for their specific situation.
It is our privilege and responsibility to help our older adults to broaden their considerations, remembering not only the local church, as well as state and national ministries of the church and our Christian Colleges and Universities.