Making a will (for purposes of this article we use “will” as shorthand for “estate plan,” which could include a revocable trust) is part of being a good steward of all the material blessings God has given us. Your will provides a smooth process for distributing your assets to those relatives and friends you cherish and to the Church ministries you wish to continue to support after your death.
Are you putting off making your will, or updating a will done years ago? You are not alone. Many of us do just that.
Why? Because we don’t like to think about our own mortality; we delude ourselves into believing there will always be time. Some believe making a will is just for “rich people.” Or, perhaps we haven’t decided how we want things distributed to beneficiaries. Some of us assume our assets will automatically pass to our natural heirs just as we might prefer.
Whatever the reason, procrastination exposes your family and property to serious risks.
Dangers of having no will — or an old will
If you leave this world without a will (intestate), your assets will be distributed according to state law. Your wishes won’t matter. Instead of providing for the family members you would like to help most, state law will distribute your estate among your relatives according to a rigid, unchangeable legal formula, depending on whether you are married, have children by that marriage, and other family relationships. And nothing will go to your friends outside your family or to organizations you have supported, such as the Church.
Without a will, someone you would not have chosen may be appointed by the probate court to administer your estate. Taxes, which you could have avoided by proper planning, may shrink the amount distributable to your beneficiaries. And your heirs will be exposed to a maze of legal technicalities.
A will you have not reviewed for many years can be almost as bad as no will. Each new year brings changes that affect the lives of your family and the nature of your property. A birth, marriage, death or change in your financial circumstances can make a big difference in your plans. Your will also can become outmoded because of a substantial inheritance, a new home or business, or the sale or gift of an important asset. Changes in the tax law occur almost annually, and may also have a serious impact on your estate plan.
What good may come
When you make a will, you ensure the wisest and most productive use of your property for the benefit of those individuals and institutions you hold dear.
You can do many good things with your will:
- Direct the division of your property the way you choose.
- Make special financial arrangements for family members who are minors, disabled, or unfamiliar with money management; or simply because you love them.
- Make a gift to your parish or archdiocesan institution.
- Select a personal representative who is well-qualified to settle your estate promptly and efficiently.
- Devise an estate plan, with the help of a qualified attorney and other advisers, to minimize the taxes on your estate, and also help avoid family misunderstandings.
Charitable giving options
Your will is the final declaration of your Christian life. It is also the final expression of love of God here on earth. There are several ways you can do this in your will:
- Give the Church — your parish, Archdiocese of Detroit Endowment Foundation, Sacred Heart Major Seminary, Catholic Charities of Southeast Michigan, or other archdiocesan institution — a specific amount of cash or securities.
- Leave specifically identified personal or real property to the Church.
- Give the Church a share of what’s left in your estate after other obligations, such as taxes, are met.
- Make a contingent bequest: give part of your estate to an individual if that person survives you; if not, then it goes to the Church.
- Create a trust to pay income to your spouse or other relative for life and designate the remaining principal for the Church.
Think of making a will as stewardship, a rewarding task, an opportunity to benefit others in a creative manner after your lifetime.
To make sure your will accomplishes all that you intend, seek the help of an attorney who specializes in estate planning. The archdiocesan Department of Development and Stewardship is available to help you choose a gift to the Church that satisfies your stewardship wishes.
Tom Scholler is associate director in the Department of Development and Stewardship for the Archdiocese of Detroit. For information on estate planning and making a gift to your parish or the archdiocese, call him at 313-596-7408, or via e-mail at [email protected]. This article is for your information on stewardship, estate planning and charitable giving. It is not intended to be legal, financial or tax advice. You should consult with your attorney, financial planner or tax advisor for the planning of the transactions suggested here.
