Deferred Generosity

We normally think of generosity as giving financially. We can also be generous with our time, spiritual gifts, love, and friendship. There is also an opportunity for “deferred generosity.” It’s surprising how few people plan to give significantly to their church or other ministries in their will or trust. Frankly, it’s even more surprising that nearly two-thirds of Americans (including Christians) don’t have a will or trust. I strongly affirm generous giving while we are alive, but often, the single largest act of generosity will be after our “graduation” to be with Jesus.

Since life expectancy for Americans is greater than ever, it’s natural to be concerned that we might “outlive” our money. We have learned from the debates on health care and medical reform that the greatest medical expenses generally occur in the last few months (or years) of life. We want to be assured that we will be properly cared for and that our surviving spouse will live well after our death. When we have addressed those matters appropriately, we can arrange to leave the remainder of our resources to our heirs and charities.

The best way to assure that our wishes are followed and our survivors are cared for is to have a will or trust drawn by a competent professional. An experienced attorney or trust officer will work with us to learn how we want to distribute our property following our death, as well as to provide for minor children. In most cases, everything goes to the surviving spouse and is distributed following that spouse’s death. The advisor will help us think through our wishes for “end-of-life” circumstances, like resuscitation, life support efforts, and other matter we tend to avoid discussing. Pre-planning these matters greatly assists family members as well as medical personnel in knowing how to act when death approaches.

Michael Jackson’s death reminds us that death can come at any time, regardless of wealth, fame, good health, or other circumstances. It appears that Michael’s will and trust will greatly simplify handling a very complex estate. While most estates are much smaller than Jackson’s, proper preparation will greatly assist our heirs in settling our estate, including care of our dependent children, donations to charity, as well as distribution of assets to our heirs.

Another benefit of having an estate plan, including a will or trust, is that there are vehicles that provide lifetime income, a tax deduction in certain cases, and leave a gift to heirs or charity. We’ll talk more about that in another (much later) post. We must also decide whether a will or a trust is the appropriate format for our situation. A will must be probated, which can take many years and consume much of the estate. In most cases, a trust avoids probate and delivers more resources to our heirs and charities. If we don’t have a will or trust, our estate will most likely go through probate anyway. Some initiative and planning now will help our survivors when they are grieving. It will also allow us to be as generous after death as we were in life. In fact, gifts given after our death may outlive our heirs and glorify God for generations.

We want to be generous every day of our lives. We can also be a blessing to charities and our heirs by practicing “deferred generosity” as well.

Note: I am not an attorney. This post isn’t intended as legal advice—simply one person’s advice to his friends.

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