copyright 2004 © david wills planning and your progeny: an heir raising experience generous giving...

Copyright 2004 © David Wills

Planning and Your Progeny:Planning and Your Progeny:An Heir Raising ExperienceAn Heir Raising Experience

Generous GivingGenerous GivingAnother Step Toward His LikenessAnother Step Toward His Likeness

Orlando, FloridaOrlando, FloridaFebruary 19 - 21, 2004February 19 - 21, 2004

David H. WillsDavid H. WillsPresidentPresident

National Christian FoundationNational Christian Foundation


Three Keys to PlanningThree Keys to Planning• It is not about the money.It is not about the money.• Those who are well planned give Those who are well planned give

more wisely.more wisely.• Until we set finish lines we Until we set finish lines we

cannot give as God intends.cannot give as God intends.


? > $? > $


My Dear Old Daddy Used to Say:My Dear Old Daddy Used to Say:If you don’t know where you’re going, If you don’t know where you’re going,

you’ll get there every time.you’ll get there every time.OROR

If you fail to plan, you’re planning to fail.If you fail to plan, you’re planning to fail.OROR

If you don’t get you’re ducks in a row, If you don’t get you’re ducks in a row, something will run afoul.something will run afoul.


What comes to mind when you think of What comes to mind when you think of estate planning?estate planning?


Definition of Estate Planning:Definition of Estate Planning:““The orderly distribution of one’s wealth into fees and The orderly distribution of one’s wealth into fees and

commissions.”commissions.”


Perspective & PlanningPerspective & Planning

Good estate planning is often not good tax Good estate planning is often not good tax planning.planning.

Wealth transfer planning is a Wealth transfer planning is a processprocess, not , not a point in time.a point in time.

THE NATIONAL

CHRISTIAN

FOUNDATION


Perspective & PlanningPerspective & PlanningFINISH

LINE

Needs &Wants

You & YourChildren &

Grandchildren…

Giving Goals &Plan

ShortShort LongLong


DeathClock.comDeathClock.comThe Internet’s friendly reminder that life is The Internet’s friendly reminder that life is

slipping away…second by second.slipping away…second by second.

• Daryl Heald Thursday, April 22, 2038 1,078,482,840

• Hugh Maclellan Sunday, Sept. 15, 2014 302,178,790

• Bob Horner Thursday, Nov. 28, 2015 334,490,588

• Jeff Reeter Tuesday, July 17, 2035 991,218,707

• Chip Ingram Saturday, April 1, 2028 760,813,633

• Sam Wills Thursday, July 7, 2078 2,347,353,875

604,800 seconds in a week!



Purposeful Purposeful PlanningPlanning

WHY...

WHAT...Should be my objectives?

*Accumulation*Utilization

HOW...

*Preservation*Disposition

Do I accomplishthe objectives?

Do I possess what I possess? Family Stewardship Philosophy




WHY...

WHAT...

Should be my objectives?

Accumulation

Utilization

HOW...

Preservation

Disposition

Do I accomplish

the objectives?

Do I possess what I possess?

Family Stewardship Philosophy




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WHAT...

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ccumulation

Utilization

HOW...P

reservationD

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Do I accom

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Do I possess w

hat I possess? Fam

ily Stew

ardship Philosophy




WHY...WHAT...

Should be my objectives?

Accumulation

Utilization

HOW...

Preservation

Disposition Do I accomplish

the objectives?

Do I possess what I possess?

Family Stewardship Philosophy




WHY...


AccumulationUtilization

HOW...

PreservationDisposition



THE NATIONAL

CHRISTIAN

FOUNDATION




WHY...


*Accumulation*Utilization

HOW...

*Preservation*Disposition




A Test for A Test for the men…the men…

THE NATIONAL

CHRISTIAN

FOUNDATION


9 Essential Vitamins for Passing on 9 Essential Vitamins for Passing on Wealth to Your HeirsWealth to Your Heirs

Vitamin AVitamin A – God’s Word… – God’s Word…Ecclesiastes 7:11-12Ecclesiastes 7:11-12

““Wisdom, like an inheritance, is a good thing and Wisdom, like an inheritance, is a good thing and benefits those who see the sun.benefits those who see the sun.Wisdom is a shelter as money is a shelter, Wisdom is a shelter as money is a shelter, but the advantage of wisdom is this:but the advantage of wisdom is this:wisdom preserves the life of its possessor.”wisdom preserves the life of its possessor.”


Vitamin B:Vitamin B: Understand the relationship Understand the relationship between the 3 forms of between the 3 forms of TransferableTransferableCapitalCapital

SpiritualSpiritual

FinancialFinancialCharacterCharacter


The Paradigm of Transferable CapitalThe Paradigm of Transferable Capital1.1. Spiritual Capital is necessary for the Spiritual Capital is necessary for the

development of true Character Capital.development of true Character Capital.2.2. A strong work ethic is usually necessary to A strong work ethic is usually necessary to

build strong Character Capital.build strong Character Capital.3.3. If Spiritual and Character Capital are strong If Spiritual and Character Capital are strong

andand tested, it tested, it maymay be advisable to impart be advisable to impart Financial Capital.Financial Capital.

4.4. If Spiritual and Character Capital are not If Spiritual and Character Capital are not strong and tested, it is, typically, not strong and tested, it is, typically, not advisable to impart Financial Capital.advisable to impart Financial Capital.


Vitamin C: Do No HarmVitamin C: Do No HarmWhat mean you fellow citizens that you turn What mean you fellow citizens that you turn

every stone to scrape wealth together, but every stone to scrape wealth together, but take so little care of your children to whom take so little care of your children to whom one day you will relinquish it all.one day you will relinquish it all.

SocratesSocrates

I do not only ask, “Will my fortune be safe I do not only ask, “Will my fortune be safe with my children?”, I also ask, “Will my with my children?”, I also ask, “Will my children be safe with my fortune?”children be safe with my fortune?”

Andrew CarnegieAndrew Carnegie


Vitamin D: Ask Hard QuestionsVitamin D: Ask Hard QuestionsWill this transfer of wealth: Will this transfer of wealth:

build spiritual capital in my children?build spiritual capital in my children?build character capital in my children?build character capital in my children?negatively impact a strong work ethic in my negatively impact a strong work ethic in my children?children?increase their standard of living without them increase their standard of living without them having to work for it? having to work for it? give Satan an opportunity to bring calamity?give Satan an opportunity to bring calamity?


More Hard QuestionsMore Hard Questions

1. How much of your net worth did you receive as an 1. How much of your net worth did you receive as an inheritance before age 45?inheritance before age 45?

2. Were you given the opportunity to develop a strong 2. Were you given the opportunity to develop a strong work ethic prior to receiving an inheritance? Are you work ethic prior to receiving an inheritance? Are you thankful for those years? Why or why not?thankful for those years? Why or why not?

3. Was the development of this work ethic important in 3. Was the development of this work ethic important in the development of your character capital?the development of your character capital?

4. Would you want to possibly deprive your children 4. Would you want to possibly deprive your children and/or grandchildren of this important aspect of life?and/or grandchildren of this important aspect of life?


Vitamin E: Leave less rather than Vitamin E: Leave less rather than more, early on.more, early on.

• Pass on, while living, an amount you can Pass on, while living, an amount you can watch. This will help you determine if your watch. This will help you determine if your children are wise stewards. This is effective in children are wise stewards. This is effective in both financial and philanthropic gifts.both financial and philanthropic gifts.

• Not leaving substantial wealth early on will Not leaving substantial wealth early on will encourage a stronger work ethic which may encourage a stronger work ethic which may build stronger character capital.build stronger character capital.


Vitamin F:Vitamin F:Don’t ask, “How much can we Don’t ask, “How much can we

leave our kids?”leave our kids?”Ask, “How much will they need?”Ask, “How much will they need?”


Vitamin G: The goal is to leave Vitamin G: The goal is to leave behind kids that are “content behind kids that are “content whatever the circumstances.”whatever the circumstances.”

““If we produce kids that are productive and content, If we produce kids that are productive and content, and this has been tried and tested, it almost doesn’t and this has been tried and tested, it almost doesn’t matter how much we leave them. If our children are matter how much we leave them. If our children are consumptive and discontent, we won’t be able to leave consumptive and discontent, we won’t be able to leave them enough.”them enough.”

Russ Crosson,Russ Crosson,President, Ronald Blue & Co.President, Ronald Blue & Co.


Vitamin H: Handle the “equality” Vitamin H: Handle the “equality” issue with great care.issue with great care.

The question is not what is fair, but what is right. The question is not what is fair, but what is right. The real questions are, The real questions are,

will your children need your money and will your children need your money and will they use it wisely? will they use it wisely?

If the answer to the first question is no, then you should If the answer to the first question is no, then you should not feel compelled to leave it to them. If the answer to the not feel compelled to leave it to them. If the answer to the second question is no, you should feel compelled not to second question is no, you should feel compelled not to leave it to them. leave it to them. If the answers markedly differ from child to child, you If the answers markedly differ from child to child, you should deal differently with them according to those real should deal differently with them according to those real differences.differences.

Randy AlcornRandy Alcorn


Vitamin I: If your kids don’t want Vitamin I: If your kids don’t want an inheritance they are good an inheritance they are good

candidates to receive one.candidates to receive one.

Question: What would your kids say if they heard you Question: What would your kids say if they heard you were going towere going to

give all you had to Kingdom work?give all you had to Kingdom work?


A Back-to-Back TestA Back-to-Back Test• Write down how much your family gave to Write down how much your family gave to charity last year.charity last year.• Write down how much you gave to your Write down how much you gave to your children last year.children last year.• Write down your family’s net worth.Write down your family’s net worth.• If the two of you died today, how much If the two of you died today, how much would go to your children/grandchildren?would go to your children/grandchildren?


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copyright 2004 © david wills planning and your progeny: an heir raising experience generous giving...

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