You Need a Good Will!

Choose your giving while you're living; Then you'll know where it will go.

A will (a written and signed document) tells others what you want to have happen to what you own when God calls you home. If you fail to specify where assets should go, then the laws of the state in which you reside or own property will decide for you. And it probably will not be the way you wanted! Some property (real or personal) may go to Uncle Fred whom you met only once, while other persons who are very dear to you but unrelated will not receive a thing. If you want part of your estate to go to God's work, that cannot happen without a will.

How do you prepare a will?

In most cases, a will is NOT a do-it-yourself project. You often need an attorney skilled in estate planning. If you do not know one, ask some of your older friends, who probably have wills and have used an attorney skilled in estate planning. If you have a financial advisor, ask him or her. You might ask your pastor for suggestions. If you still don't know where to go, call the local bar association. Laws regarding estates change frequently and you need someone who is up-to-date on these matters.

Before you go to the attorney, gather together this information:

1) A list of all your assets and their approximate value. If you and your spouse have separate assets, indicate who owns what, and what is owned together. This may include:

- Real estate (your home, a summer home, lots you may own)
- Checking and Savings Accounts
- Stocks, Bonds, and other investments
- Your retirement accounts--IRA or Keogh accounts or other pension plans
- U.S. Treasury Notes and Bonds
- Automobiles and other valuable personal property
- Life Insurance policies and their beneficiaries

2) A list of people who are important to you and whom you want to remember in your will. Get their addresses and birth dates. These may include:

- Parents
- Children and grandchildren
- Brothers and sisters, nieces and nephews
- Other special people

3) If you have minor children, you need to name a guardian, someone who agrees to care for your children in the event you die before they are grown.

4) A list of charitable organizations and/or your church that you would like to continue to support after your death. You may want to think through what proportion of your estate you want to use for charitable purposes.

5) The name of a person to serve as executor or administrator of your will. If you do not have a relative with whom you feel confident, you may wish to name your bank. An executor may be entitled to collect a fee. You can discuss this with your attorney.

How much does it cost to have a will drawn up by an attorney?

Discuss fees at your first meeting with the attorney. It depends on how complicated your will is. A very simple will may cost $300 or less. If you are drawing up trusts, etc. for minor children and/or a spouse, it will be more expensive.

What if I want to change my will later?

Every will should be reviewed at regular intervals and especially when there is any major change in the family, such as marriages, births, deaths, changes in relationships or in financial status. You may change your mind about who or what is important to you. Minor changes can be made by adding a "codicil." Major changes may require a new will.

Do both spouses need a will?

Yes. This is true even if all property is held jointly. The wills may be identical except that each provides for the other spouse. In cases where a couple dies in a common disaster, individual wills are especially important.

Can I set up trusts in my will?

Yes. You may choose to set up a trust to manage property for your heirs, or to hold property for minor children, or for an incompetent beneficiary. You may want to set up a trust for your spouse.

How do I include CBE in my will?

There are several possibilities:

1) Designate a certain percentage of your estate for CBE. The gift will change with the size of the estate. This is the most flexible method.

2) Designate a fixed amount for CBE. This is the easiest but not necessarily the best because the amount of your available estate may change.

3) Specify certain property for CBE. If you have an IRA, for example, you might designate CBE or some other nonprofit group as the secondary beneficiary. The charitable organization will NOT have to pay income tax on this money as your children would have to. Better to leave children cash, stocks, or insurance money, on which they will probably NOT pay income tax. (They will inherit stocks at their current value when they inherit them, and may not have to pay full capital gains tax.)

4) Residue--you can leave to your favorite charity what is left after other bequests have been fulfilled.

5) You can make a contingent gift. "I leave $10,000 to my aunt Sarah. If she dies before me, I give this amount to CBE."

6) You can create a trust for an incompetent relative or other beneficiary, with the income and principal to be used for his/her support, and the residue to go to the charity when the trust terminates.

7) You may make a bequest in the memory of someone important to you. The charity will find ways to make that person's name known.

8) You can name CBE as a beneficiary of an insurance policy.

You probably have many other questions that your attorney can answer as he or she draws up your will to be signed and witnessed.

There is satisfaction in being a good steward of what God has given you. Preparing a will gives you an opportunity to examine your resources, thank God for your family, and to plan ahead. If you decide to remember CBE in your will, please let us know so that we can thank you while you are alive!

CBE does not give legal or tax advice. This information is intended to give only suggestions of a general character. The attorney in YOUR State is the one who must give you up-to-date information and advice.

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*CBE is an exempt organization as described in IRC Sec. 501(c)3 and as such, donations may qualify as charitable contributions where allowed by law. CBE is a member of The National Association of Evangelicals and Evangelicals for Financial Accountability.*