Do I need an estate plan?
Estate plans: what are they, and why should I care?
When you hear the word “estate,” there’s a fair chance you immediately think of wealthy people out for a midday stroll on acres of private land with a beautiful mansion just over the next ridge. If something like this comes to mind, you nailed the first definition in the dictionary. But there’s a second definition, and it goes something like this…
All the money and property a person owns, especially at death.
This far broader definition is relatable to just about everyone. I mean, five bucks in your wallet isn’t much of an estate, but it’s technically an estate. Let’s make this concept even more meaningful by expressing it in biblical terms:
“Your estate is the totality of everything God has entrusted to you that will transfer to another upon your death.”
Okay, now we’ve got something we can work with. Your estate includes all your cash (whether that lives in your bank account, wallet, or couch cushion), non-cash assets (such as a house, vehicle, stocks, business, etc.), and any minor children under your care. And these things WILL transfer to another upon your death, whether you’re prepared for that reality or not. So why not be prepared? Why not have a plan? A plan that lays out who will inherit responsibility for all your stuff and who will be entrusted with caring for your young children.
We could call it… oh, I don’t know… an “estate plan.”
If you think an estate plan sounds a lot like a will, that’s an important part of it. But there are many other considerations. For example, the transfer of your cash and non-cash assets is influenced by other significant documents, such as the title to your home or vehicle and records verifying joint owners and designated beneficiaries on your accounts. It’s vital for all these documents to harmonize with your will. And sometimes, depending on your specific situation, setting up a trust makes good sense.
For Christians, estate planning should be a biblical and prayerful process that is formalized by a legal process. Working with a trusted professional is critical to navigating the natural complexities surrounding estate planning, and the Gift and Estate Design team at Orchard Alliance would love to help!