What is the difference between estate planning and wealth transfer?
Dear Friends,
Why are we embarking on a series of Virtual Feedback Loop questions that have to do with such a difficult topic (wealth transfer and, therefore, our own death) when we’re in the middle of vacation season? Well, there is never really a GOOD time to take up the issue of wealth transfer, since we’d rather be planning our vacations than planning for our ultimate demise! My family just wrapped up a week’s vacation – there were 21 of us there, and we had a great time. My wealth transfer plans are in place, but the process of developing that plan has taken many years, many prayers, and lots of communication. I look forward to sharing a few lessons that I’ve learned with you over the coming weeks.
Knowing that September is a bit like a “new year” for many, I thought that I’d take a few weeks to remind you of some important decisions that you and your spouse can to make this fall so that the future of your family is secure. No one likes to go through the process of planning what will happen after their death, but that plan will be the last message that you leave to your family. I always tell clients that the wealth transfer decision is the last stewardship decision that God allows you to make. Therefore, it is worth some forethought and careful planning!
Throughout my years as a financial advisor, I’ve come to understand the wealth transfer process as a series of six decisions. Next week, I’ll give you a philosophical question that will put these questions into perspective. Then, we’ll spend the next six weeks examining the six major decisions in a solid “estate plan.”
In short, we will walk through the following steps in the wealth transfer process:
I know that none of this is riveting stuff, and you might rather watch the latest installment of your favorite reality TV show rather than work through these questions. But, failing to answer these questions can lead to more drama in families than any television show can muster up, so please take the time to work them out!
As I said on the video, you will find it very helpful to think about your “estate planning” as “wealth transfer” instead. The decisions you make are about much more than wills and taxes, they are about God’s abundant resources in your life (material and otherwise) and they are about your plans to effectively transfer those resources to another generation! Wealth transfer begins now, and wealth transfer is a critical piece of the stewardship puzzle in your life.
May God’s peace encourage you as you pursue financial wisdom and depend on His Truth.
Blessings,
Ron
Click here for the video transcript
Why are we embarking on a series of Virtual Feedback Loop questions that have to do with such a difficult topic (wealth transfer and, therefore, our own death) when we’re in the middle of vacation season? Well, there is never really a GOOD time to take up the issue of wealth transfer, since we’d rather be planning our vacations than planning for our ultimate demise! My family just wrapped up a week’s vacation – there were 21 of us there, and we had a great time. My wealth transfer plans are in place, but the process of developing that plan has taken many years, many prayers, and lots of communication. I look forward to sharing a few lessons that I’ve learned with you over the coming weeks.
Knowing that September is a bit like a “new year” for many, I thought that I’d take a few weeks to remind you of some important decisions that you and your spouse can to make this fall so that the future of your family is secure. No one likes to go through the process of planning what will happen after their death, but that plan will be the last message that you leave to your family. I always tell clients that the wealth transfer decision is the last stewardship decision that God allows you to make. Therefore, it is worth some forethought and careful planning!
Throughout my years as a financial advisor, I’ve come to understand the wealth transfer process as a series of six decisions. Next week, I’ll give you a philosophical question that will put these questions into perspective. Then, we’ll spend the next six weeks examining the six major decisions in a solid “estate plan.”
In short, we will walk through the following steps in the wealth transfer process:
- Life overview – the “why.”
- Decision 1 – the “Transfer Decision.” (to whom?)
- Decision 2 – the “Treatment Decision.” (how much?)
- Decision 3 – the “Timing Decision.” (when?)
- Decision 4 – the “Title Decision.” (what?)
- Decision 5 – the “Tools and Techniques Decision.” (how?)
- Decision 6 – the “Talk Decision.” (communicating all of the above)
I know that none of this is riveting stuff, and you might rather watch the latest installment of your favorite reality TV show rather than work through these questions. But, failing to answer these questions can lead to more drama in families than any television show can muster up, so please take the time to work them out!
As I said on the video, you will find it very helpful to think about your “estate planning” as “wealth transfer” instead. The decisions you make are about much more than wills and taxes, they are about God’s abundant resources in your life (material and otherwise) and they are about your plans to effectively transfer those resources to another generation! Wealth transfer begins now, and wealth transfer is a critical piece of the stewardship puzzle in your life.
May God’s peace encourage you as you pursue financial wisdom and depend on His Truth.
Blessings,
Ron
Click here for the video transcript
It's hard to think about wealth transfer at this point in my life - late 30s, small kids, mortgage, little wealth - but Ron reminds me every time I listen to him about planning for the future and thinking intentionally about it. Thanks!
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My Dad died at age 55. I am 58 and know my time can come at any time. I am in the process of handling all my end-of-life affairs now so this is a timely topic for me. I like the idea of wealth transfer. It includes God in the process. It makes me think differently. There was also a good article on on the front page of this month's Sound Mind Investing newsletter titled "Biblical Wisdom for Giving" that also talks about how to make giving and stewardship decisions. I use that information in my wealth transfer decisions. Their website is soundmindinvesting.com
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I'm so glad to say that my husband and I signed our wills, etc. last week...just in time for our first weekend trip away from our 18 month old. I pray that the plane doesn't go down, but if it does...I'll be with Jesus and Julianna will be well taken care of by my brother and his wife with the proceeds of her trust moneys. It's a weight off of my shoulders to know that I've done my best to take care of our little one if the worst should happen. Now if I only were worth more alive than dead...hmmm...that's a goal.
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I liked the article and the video concerning the difference between estate planning and wealth transfer. I know that no one likes to think about impending death but these decisions have to be made to ensure that those left behind are taken care of in the event that one is called home to be with the Lord. I appreciate you taking time to develop a website that provides a Christian perspective and sound financial advice on being wise stewards of the resources God has blessed His people with.
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