Integrating Faith into Your Financial Legacy: A Biblical Approach to Inheritance and Estate Planning

 

Integrating Faith into Your Financial Legacy: A Biblical Approach to Inheritance and Estate Planning

 

By Matthew Allgood, Principal and CFP®

 

In the journey of life, our financial decisions often mirror our deepest values and beliefs. For those guided by their faith, integrating biblical principles into financial planning, especially concerning inheritance and estate planning, is not just a practice but a fulfillment of spiritual stewardship. This article explores how the timeless wisdom found in the Bible can guide us in creating a financial legacy that honors our values and supports our families ethically and effectively.

 

Biblical Principles and Financial Stewardship

The Bible offers profound insights into the management of resources, emphasizing stewardship, generosity, and the ethical handling of wealth. In Matthew 25:21, the parable of the talents teaches us to be good stewards of what we are given, as the master says, “Well done, good and faithful servant. You have been faithful with a few things; I will put you in charge of many things.”

 

This principle underscores the importance of responsibly managing the wealth we accumulate over our lifetimes and ensuring it continues to serve a purpose beyond our earthly existence.

 

A Heart for Generosity

Generosity is a recurring theme in biblical teachings, and it profoundly impacts estate planning. Proverbs 13:22 states, “A good person leaves an inheritance for their children’s children.” This passage speaks to the heart of legacy, encouraging believers to extend their generosity across generations.

 

Strategically planning your estate allows for meaningful contributions to your family and charitable causes that reflect your values and commitments. Through tools like charitable trusts or designated gifts, you can ensure that your wealth serves as a blessing to others, just as you intended.

 

Ethical Considerations in Estate Planning

The ethical management of estate taxes and the fair distribution of assets are critical aspects of biblical estate planning. Romans 13:7 advises, “Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor.” This guidance emphasizes the importance of fulfilling our legal and ethical obligations.

 

By planning in advance, you may be able to legally minimize the estate taxes that may diminish what is passed on to your heirs and charities, ensuring that your resources are utilized according to your faithful intentions.  But it is important to recognize that paying what is owed is part of being faithful stewards as well.

 

Conversations with Family

Another essential aspect of faith-based estate planning is having open and honest conversations with family members about your plans. These discussions can sometimes be challenging but providing clarity and understanding about your decisions can foster peace and unity, reflecting the biblical principle of peace-making.

 

Seeking Wise Counsel

Just as Proverbs 15:22 highlights, “Plans fail for lack of counsel, but with many advisers they succeed.” It’s crucial to seek advice from experienced financial advisors who respect and understand your desire to integrate faith into your financial planning. They can provide guidance on the most effective tools and strategies to ensure that your estate plan aligns with both your financial goals and your spiritual values.

 

 

Integrating faith into your financial legacy is about more than just the distribution of your assets; it’s about making a lasting impact that honors God and reflects your beliefs. As we steward our resources wisely, plan for future generations, and navigate the ethical challenges of estate planning, we fulfill a calling that extends beyond our lifetime. At Allgood Financial, we are dedicated to helping you achieve an estate plan that not only meets your financial objectives but also enriches the lives of those you hold dear and upholds the values you cherish.  Of course, we cannot draft legal documents … we CAN refer you to qualified attorneys who do that … but being versed in several common techniques you may want to consider with your attorney, we can still provide you with insights and generate good questions for your attorney as you prepare to meet with them.  This may save you time on their meter and potential lower your ultimate fees there.