Planning and Your Progeny: An Heir-Raising Experience
- by David Wills
David Wills is president of the National Christian Foundation in Atlanta, Ga. The following is an excerpt from a speech he delivered at the annual Generous Giving Conference, Orlando, FL, February 19-21, 2004.
I want to give you a basic framework for approaching the issue of wealth and your kids. There are nine essential vitamins:
Passing the Legacy Baton
- Vitamin A: God's word. Ecclesiastes 7:11-12 says, "Wisdom, like an inheritance, is a good thing and benefits those who see the sun." Inheritance is not a bad thing. Wisdom is a shelter as money is a shelter, but the advantage of wisdom is that wisdom preserves the life of its possessor.
- Vitamin B: Understand the relationship between the three forms of transferable capital-the spiritual, the character and the financial. The most important capital that you can transfer to your children or your grandchildren is spiritual capital. Spiritual capital is salvation in Christ and the ability to understand and apply God's word in our lives. There is no better investment in your children or your grandchildren than to pass on spiritual capital. Like spiritual capital, character capital is a non-tangible transfer. Character capital involves things such as integrity and honesty. Least important is financial capital. Spiritual capital is necessary for the development of true character capital. If spiritual and character capital are strong, it may be advisable to impart financial capital. That is where the decision of how much should go. If spiritual and character capital are not strong, it is typically not advisable to impart financial capital.
- Vitamin C: Do no harm. You need to think through a worst-case scenario regarding how you pass wealth onto your children or your grandchildren. The philosopher Socrates said, "What mean you, fellow citizens, that you turn every stone to scrape wealth together but take so little care of your children to whom one day you relinquish it all?" You can also put the word "spouse" in there. Andrew Carnegie said, "I not only ask, 'Will my fortune be safe with my children,' but, 'Will my children be safe with my fortune.'"
- Vitamin D: Ask hard questions. Will this transfer of wealth build spiritual capital in my children? We generally skip over that question because we don't typically think of financial capital building spiritual capital, but it certainly can. Will it build character capital in my children? Will it negatively impact a strong work ethic in my children? Will it increase their standard of living without them having to work for it? Consider these questions: Were you given the opportunity to develop a strong work ethic prior to receiving an inheritance? Are you thankful for those years? Why or why not? Would you want to possibly deprive your children and or grandchildren of this important aspect of life?
- Vitamin E: Leave less rather than more early on. Simply stated, put it out there and watch what happens to it. Use it as a test. I am not talking just about financial capital from a spending standpoint. Get your kids engaged in the giving process. Get them engaged, watch what they do, and you will observe to what degree you have discipled them.
- Vitamin F: Don't ask how much you can leave your kids; ask how much they will need.
- Vitamin G: The goal is to leave behind kids who are content whatever the circumstances, as Paul says in Philippians 4. When your kids are content whatever the circumstances, you know that they are able to handle financial capital. Christian financial advisor Russ Crosson says, "If we produce kids that are productive and content, and this has been tried and tested, it almost doesn't matter how much we leave them. If our children are consumptive and discontent, we won't be able to leave them enough, and they will dissipate it rapidly."
- Vitamin H: Handle the "equality" issue with great care. This is the number-one issue with regards to dealing with children. Randy Alcorn writes,
"The question is not what is fair, but what is right. The real questions are will your children need your money, and will they use it wisely? 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 second question is no, you should feel compelled not to leave it to them. If the answers markedly differ from child to child, you should deal differently with them according to those real differences."
- Vitamin I: If your kids don't want an inheritance, they are good candidates to receive one. What would your kids say if you told them you were giving it all away? If they responded positively, then you should feel much freer to leave them financial capital because they will become faithful stewards of it in your stead.
- It's evident from the article by David Wills that passing a legacy of good stewardship to the next generation is no simple feat! There is much to consider. If this is an area of concern for you, I would encourage you to find the book "Family.Money" by Mr. Wills for a more in-depth treatment.
As I write this, I pray that God will grant the insight you need to transfer a legacy of good stewardship to your heirs. Of course, we at Food for the Hungry want to see you excel in your partnership with us; but we also have a heart to see you excel at arranging that strong legacy with your family. As you journey through that process, we are here to offer assistance and encouragement. Contact our Legacy Giving team for support with resources, ideas and expertise.