What do you think of when you hear the term “estate planning?” Rich old people? Estates are all of the property that has to be divvied up and kept from taxes when rich people die, right?

 

Wrong!

 

In fact, estate planning isn’t just about what happens after you die. It also covers what happens if you become incapacitated or cannot handle your own affairs.

 

And, it’s not just about money. It’s about who will raise your children and take over your church and whether or not the doctors should pull the plug on you. Estate planning encompasses all of the end-of-life matters, including what you want to happen to everything that is currently in your control.

 

Everyone Needs An Estate Plan

Everyone who is a legal adult needs an estate plan. It doesn’t matter if you have any money or any kids. If you have breath in your lungs, you need an estate plan. If you’re broke and single, the loved ones that you leave behind still need to know if you want to be kept alive artificially, what to do with your car, what to do with your body, and how you want to be remembered.

 

So, let me say it again, everyone needs an estate plan. Don’t know where to begin? You’re in the right place. Here is a checklist of everything you need to create a complete estate plan:

 

Pieces Of An Estate Plan

▢ Will

Most people are familiar with a will, which is the document that states what you want to be done with your stuff after you die. However, a lot of pastors have never actually gotten around to making one. Several years, ago, the Southern Baptist Convention did a survey of their pastors that found that almost 40% of them have no estate planning documents at all. That’s better than the general population, though, where 60% of people don’t have a will. Go Southern Baptists! You get a D while everyone else gets an F.

 

Your will should include who you want to receive your assets, who you want to raise your minor children, and who should be in charge of making sure it all happens. Each state has different laws that govern wills, so make sure yours is state-specific. The best way to write a will is with a competent estate planning attorney. Though, if you have a simple financial/family life, you can get away with using an online template. At the very least, handwrite your wishes. You need a will.

 

▢ Trust Documents & Pour-Over Will

Depending on your situation, it might be advisable to have a revocable living trust. This allows for someone to step in and manage your money and property in the event of your death without getting the courts involved. They are also used to avoid probate, maintain privacy, and manage inheritances for minors.

 

You will need to work with an estate attorney to set up a trust. If you set one up, you will need a pour-over will that basically says that the trust documents contain your wishes and the trustee will handle everything. Also, just setting up a trust isn’t enough, you have to make sure to move all of your assets into it for it to actually serve a purpose.

 

▢ Durable Power Of Attorney

A power of attorney is a legal document that gives someone else the right to do things for you, like sign checks or sell real estate. With a power of attorney, that person’s signature carries the same legal weight as yours.

 

A “durable” power of attorney just means that it remains valid and in effect even if you become incapacitated or can’t make your own decisions. Without the word “durable,” the power of attorney is terminated when that happens.

 

You should have two kinds of durable powers of attorney; one for your finances and one for your healthcare. You may not want the same person making your medical decisions as your financial decisions. Name the person best qualified for each.

 

▢ Advance Healthcare Directive/Living Will

In addition to Advance Healthcare Directive and Living Will, this legal document is also commonly called an Advance Directive, Personal Directive, Medical Directive, or Advance Decision. Whereas a will and trust are about your stuff, the advance directive is about you. What will happen to you medically when you’re no longer able to make your own decisions or give consent?

 

Now is the time to make those decisions, through an advance directive. If you don’t want your life unnecessarily prolonged or to be dependent on a feeding tube, you need to put that in writing. When the time comes, your loved ones may not have the emotional strength to pull the plug on you. You can make it as specific or as general as you want, but, you need to tell the doctors your wishes right now, while you still can.

 

▢ Church Succession Plan

For many pastors, your church is like your baby. In your will, you choose a guardian for your real babies. If you don’t have a denomination that will do it, have you chosen a guardian for your church? What will happen to your church if you unexpectedly die?

 

You should have a named successor, even if it is kept private while you are alive. You should also make sure that any vital information does not die with you. Either someone else should know all important information, or you should have it written somewhere that people can access in the event of your death.

 

▢ Digital Estate Plan

The information age has brought with it a whole new side to estate planning. What happens to your email accounts, Facebook page, online bank accounts, etc. when you die? You need to have a plan for them.

 

Make a list of all your different online accounts. Assign someone capable to clean up your online presence when you pass away, and make sure they have access to that list. They will also need your passwords, though they should not be kept together. The safest way to do it is to use a password manager where they will only need one password to access all of your accounts.

 

▢ Memorial Instructions

For as long as I can remember, my mom has been saying that she wants the theme song from Chariots of Fire played at her funeral. I hope we don’t have to play it any time soon, but I appreciate knowing what she wants. If you have any preferences for how you want to be remembered, you have to write them down. Let people know!

 

▢ Burial Instructions

Just as you can plan some of your own memorial service even though you don’t get to attend, you can also plan your own burial. Want to be buried next to your wife? Cremated with your ashes spread in the Holy Land? If you have an opinion, let it be known!

 

 

When asked, 47% of people said they hadn’t completed any estate planning because they “hadn’t gotten around to it.” As a pastor, you probably know better than most people that life doesn’t always happen the way we have planned. If you keep putting it off, you may end up being too late. Get your estate planning done. This week! It’s one of the best ways to care for your family and church in what will be an incredibly difficult time for them.