Complimentary Story
June 2024“Now concerning the times and the seasons, brothers, you have no need to have anything written to you. For you yourselves are fully aware that the day of the Lord will come like a thief in the night. While people are saying, ‘There is peace and security,’ then sudden destruction will come upon them as labor pains come upon a pregnant woman, and they will not escape.” (1 Thessalonians 5:1-3).
“Besides this you know the time, that the hour has come for you to wake from sleep. For salvation is nearer to us now than when we first believed.” (Romans 13:11).
“Look carefully then how you walk, not as unwise but as wise, making the best use of the time, because the days are evil. Therefore do not be foolish, but understand what the will of the Lord is.” (Ephesians 5:15-17).
The reality of the impending return of Christ is one that most Christians accept as theological truth. One of the primary struggles of Christian life, however, is to make decisions with our time, abilities, relationships and finances that reflect this truth.
In his second epistle, Peter confronts readers with the reality that the end of this earth is just as real as God’s work in Creation and the Flood. After making that point, Peter poses the question to which we all must respond: “Since all these things are thus to be dissolved, what sort of people ought you to be in lives of holiness and godliness, waiting for and hastening the coming of the day of God, because of which the heavens will be set on fire and dissolved, and the heavenly bodies will melt as they burn!” (2 Peter 3:11-12)
Indeed, that question rings louder in the hearts of Christians as the labor pains of the end times grow stronger and more painful. And among the many facts of life that must be tuned according to that question is a Christian’s legal and financial plan.
After twenty years of representing Christians in matters relating to the distribution of estates, it has become clear that several false ideas have hamstrung many believers from making the appropriate preparations for their trip to glory. Among those false ideas are:
• “My kids will sort everything out after I’m gone, so I don’t need to worry about it.”
• “My estate is too small for me to worry about a will or a trust.”
• “My family will donate to my charities with my estate, so I don’t need to specify any charitable gifts.”
• “Preparing an estate plan is a waste of money. Someone else can figure it out when I’m gone!”
To be sure, each of those statements is false and contrary to our obligations to be awake (Romans 13:11) and wise (Ephesians 5:15-17) in our dealings on this earth. We will examine them one by one under Wisconsin law and in light of 20 years of estate planning experience.
1). “My kids will sort everything out after I’m gone, so I don’t need to worry about it.”
Three primary problems arise with this lazy thinking. We will handle them one at a time.
First, without a proper estate plan, you have consented to the government dictating, supervising and slowing the administration of your estate through a process called probate. Your kids will not have authority to do anything with your property unless it is consistent with laws you do not know and approved by a judge you will never meet.
Second, without an estate plan, you surrender the right to decide which of your children will be in charge of handling your estate. Are all of your children believers walking with the Lord? Are all of them competent with handling money and property? Are all of them peacemakers? If not, who is likely to take over in a time of confusion from a lack of guidance by you?
Finally, without an estate plan, your children might pay significant unneeded taxes on money that would otherwise be tax-free and smooth. For example, if your children get your IRA but you want them to turn around and give some or all of it to a charity, they will have to pay income tax on that money before they give the remainder to the church. A proper estate plan would cut them out as the middle person and go directly to the church, which would not be required to pay any income tax.
2). “My estate is too small for me to worry about a will or a trust.”
Wisconsin law provides that a person who dies with assets in his or her name is subject to the jurisdiction of the court, and any person who dies with assets greater than $50,000 in his or her name must go through the standard probate process. Particularly for homeowners, this is an extremely low bar that makes estate planning necessary at a much lower net worth than many would think.
3). “My family will donate to my charities with my estate, so I don’t need to specify any charitable gifts.”
In short, no they won’t. Two decades of legal experience, confirmed by loads of statistics, confirm that nothing from most estates goes to charity unless the deceased person requires that it goes there in his or her estate plan. If you wish to be diligent in supporting Christ-honoring organizations, then you must be diligent in preparing an estate plan that specifically supports them. If you are not, your wishes are very likely to be ignored once you are no longer there to voice them, particularly with family members who do not share your worldview.
4). “Preparing an estate plan is a waste of money. Someone else can figure it out when I’m gone!”
Many estate planning attorneys (including this one) do not charge for initial consultations because it is so simple to explain to clients how their family, friends and favorite organizations will come out far ahead by them investing in a wise estate plan.
Challenge yourself to meet with an experienced estate planner to see if this is the case for you. For the reasons listed above and many more specific to your situation, you are very likely to determine that an estate plan is some of the best stewardship you have ever done.
McLario, Helm, Bertling & Spiegel, S.C.
N88 W16783 Main St.
Menomonee Falls, WI 53051-2890
Tel: (262) 251-4210
McLario.com
