The

LEGACY

INSTITUTE

a division of

The LIFE Financial Group, Inc.

Roy L. Russell, CFP Greg Reed, JD

Parts of the following slides have been taken from Randy Alcorn’s book “The Law of RewardsThe Law of Rewards.”Published by Tyndale Books.

Jim Elliot1927-1956

Christian martyr in Ecuador

““He is no fool who givesHe is no fool who giveswhat he cannot keepwhat he cannot keep

to gain what he cannot to gain what he cannot lose”lose”

I.I. The Treasure PrincipleThe Treasure Principle

A.A. Where is our treasureWhere is our treasure??

Is it in IRA’s, 401(k) accounts, Is it in IRA’s, 401(k) accounts, stocks, mutual funds, gold coins, stocks, mutual funds, gold coins, annuities, real estate, expected annuities, real estate, expected inheritance?inheritance?

oror

Do you have a different Do you have a different perspective ?perspective ?

B.B. Consider the question: Consider the question: What will What will last?last?

Finite PerspectiveFinite Perspective – Farmland, real – Farmland, real estate, gold, investments, and other estate, gold, investments, and other things will all perish!things will all perish!

Infinite PerspectiveInfinite Perspective – We are told to – We are told to fix our eyes fix our eyes notnot on what is seen, but on what is seen, but on what is unseen. For what is seen on what is unseen. For what is seen is “is “temporaltemporal, but the things which , but the things which are not seen are eternal.… For we are not seen are eternal.… For we walk by faith, not by sight” walk by faith, not by sight” (2 (2 Corinthians 4:18, 5:7 + Col 1:16).Corinthians 4:18, 5:7 + Col 1:16).

How would you answerHow would you answerthese questions?these questions?

1.1. If you had enough moneyIf you had enough money what would you do what would you do different?different?

How could you make a How could you make a difference?difference?

2. If the doctor said you only had 3 2. If the doctor said you only had 3 years to live what would you do years to live what would you do different?different?

3. If you were to die tomorrow what 3. If you were to die tomorrow what would be your greatest regret? would be your greatest regret?

Stingy?Stingy?Self-centered?Self-centered?

Carnal?Carnal?Unfaithful?Unfaithful?

II. II. The Reward PrincipleThe Reward Principle

When we invest money now When we invest money now in God’s kingdom, we will in God’s kingdom, we will receive great rewards later receive great rewards later in heaven.in heaven.It’s a totally different way of It’s a totally different way of

thinkingthinking

Jesus said:Jesus said:

““Lay not up for yourselves Lay not up for yourselves treasures upon earth, where moth treasures upon earth, where moth and rust doth corrupt, and where and rust doth corrupt, and where thieves break through and steal; thieves break through and steal; but lay up for yourselvesbut lay up for yourselves treasures treasures in heavenin heaven… …

For where your treasure is there For where your treasure is there will will your heartyour heart be also be also” ”

Matt 6:19-24Matt 6:19-24

We are expected to invest in the We are expected to invest in the Kingdom. Jesus actually Kingdom. Jesus actually commandedcommanded us us to store up to store up treasurestreasures, , in heavenin heaven..

The reality of The reality of eternal rewards should eternal rewards should foster an investment mentalityfoster an investment mentality..

What do we expect when we invest?What do we expect when we invest?– We expect gain or growth!We expect gain or growth!

I believe that…

“God prospers you and Inot to raise

our standard of living,but to raise

our standard of giving”

The Bible says that in the multitude of The Bible says that in the multitude of counselors there is wisdom. Talk with your counselors there is wisdom. Talk with your children, your pastor, accountant and/or children, your pastor, accountant and/or attorney and seek wisdom.attorney and seek wisdom.

I am not an attorney and this is intended to I am not an attorney and this is intended to be informational only and should not be be informational only and should not be construed to be legal advice. You should construed to be legal advice. You should consult with a licensed attorney regarding consult with a licensed attorney regarding any legal issues.any legal issues.

Give frequent flyer milesGive frequent flyer miles Give matching challenge grantsGive matching challenge grants Assign rebates to the churchAssign rebates to the church Eliminate eating out for a period of timeEliminate eating out for a period of time Do extra work for a specific projectDo extra work for a specific project Have yard sales or re-sale items on e-BayHave yard sales or re-sale items on e-Bay

III.III. ApplicationApplication: : Ways to Ways to Raise Your Standard of Raise Your Standard of GivingGiving

Often Overlooked IdeasOften Overlooked Ideas

Shares of stock – Shares of stock – great tax planninggreat tax planning Real Estate – Real Estate – life estate?life estate? CRT – CRT – (Charitable Remainder Trust)(Charitable Remainder Trust) Gift Annuity – Gift Annuity – with your church?with your church? Life Insurance – Life Insurance – still needed?still needed? Family Foundation – Family Foundation – how much is enough?how much is enough? IRA – IRA – tax planning is wisetax planning is wise Collectibles: coins, gems, guns, booksCollectibles: coins, gems, guns, books Software licenses – Software licenses – cheaper upgradescheaper upgrades

Here’s some more ways to Here’s some more ways to give:give:

A.A. God expects us to plan. God expects us to plan.

Be a blessing to your children.Be a blessing to your children. Proverbs Proverbs 13:2213:22An inheritance is to be expected.An inheritance is to be expected. Proverbs 19:14 Proverbs 19:14 Planning leads to profit.Planning leads to profit. Proverbs 21:5Proverbs 21:5The foolish man doesn’t save.The foolish man doesn’t save. Proverbs 21:20Proverbs 21:20The foolish man doesn’t plan.The foolish man doesn’t plan. Proverbs 22:3Proverbs 22:3We should know our net worth. We should know our net worth. Proverbs 27:23-24Proverbs 27:23-24

Why? Why? Because, no man has power over the day of his death. Because, no man has power over the day of his death. Ecclesiastes 8:8Ecclesiastes 8:8

Estate Planning from a Christian Worldview

B. Estate planning is often Estate planning is often avoided.avoided.

““Estate planning is confusing.”Estate planning is confusing.” ““I don’t want to think about death.”I don’t want to think about death.” ““I don’t think I have a large enough I don’t think I have a large enough

estate.”estate.” ““The topic is too overwhelming.”The topic is too overwhelming.” ““The Lord is coming soon – who cares?” The Lord is coming soon – who cares?” ““I don’t know who to name as guardian.”I don’t know who to name as guardian.”

Write down Write down youryour reason reason

II. II. When Do I Need Estate When Do I Need Estate DocumentsDocuments??

The moment you The moment you startstart a family a family

Any time you Any time you own assetsown assets in your in your name alonename alone

Everyone needs a Will,Everyone needs a Will,

some need moresome need more

III.III. What should a Will What should a Will include?include?

Your Testimony and ChallengeYour Testimony and Challenge Charitable Planning for MinistryCharitable Planning for Ministry Provisions for Your ChildrenProvisions for Your Children

– Did you forget one?Did you forget one?– Christian Schooling or College?Christian Schooling or College?

Guardian, Trustee & ExecutorGuardian, Trustee & Executor– Did you provide for backups?Did you provide for backups?– What age are they to receive the What age are they to receive the

money?money? Proper Witness’sProper Witness’s Memorandum and Self-Proving Affidavit Memorandum and Self-Proving Affidavit

IV.IV. What is a Living Trust What is a Living Trust andand when do you need one? when do you need one?

A Living TrustA Living Trust

Provides for ongoing management. Provides for ongoing management. Avoids the cost and delays of probate.Avoids the cost and delays of probate. Avoids Avoids ancillary probateancillary probate.. A must for the residents of some states.A must for the residents of some states. Is more complex and costly to draft.Is more complex and costly to draft. Still need a basic will. Still need a basic will. All titled assets need to be re-titled into All titled assets need to be re-titled into

the trust: the trust: house, investments, etc.house, investments, etc. Usually for larger estates.Usually for larger estates.

V. V. What is Probate &What is Probate &how can you avoid it?how can you avoid it?

A.A. Probate - Probate - A legal process used to A legal process used to transfer assetstransfer assets

- - Occurs in every state where you own real Occurs in every state where you own real estate.estate.

- Probate is very easy in some states and - Probate is very easy in some states and very costly & troublesome in others. very costly & troublesome in others. Attorney fees can be costly and vary by Attorney fees can be costly and vary by state.state.

- It usually takes 1 year or more to settle - It usually takes 1 year or more to settle an estate.an estate.

B. Probate can be avoided.Probate can be avoided.

Through a living trust.Through a living trust. Through proper titling of accounts.Through proper titling of accounts. Through beneficiary designations.Through beneficiary designations.

– Annuities, IRAs, life insurance, etc.Annuities, IRAs, life insurance, etc. By not owning any titled property at By not owning any titled property at

death.death. Typical attorney fees: hourly or Typical attorney fees: hourly or

percentage of estatepercentage of estate

VI. What Else Should You What Else Should You Know?Know?

A.A. Federal Estate TaxFederal Estate Tax - - also called the also called the

Confiscation Tax, this can take up to 50% Confiscation Tax, this can take up to 50% or more of your estate at death. or more of your estate at death. Next Next year limit is 1 million dollars (this includes all year limit is 1 million dollars (this includes all life insurance!).life insurance!).

– Avoid by planning ahead.Avoid by planning ahead.– Avoid by including a “disclaimer trust” in Avoid by including a “disclaimer trust” in

your Wyour Will or Living Trust.– It’s a moving target.

B.B. Power of AttorneyPower of Attorney - Legally - Legally appoints a personal appoints a personal representativerepresentative

– Choose a backupChoose a backup– Can be dangerous in the wrong handsCan be dangerous in the wrong hands– But a lifesaver in othersBut a lifesaver in others– Needed by everyoneNeeded by everyone, especially as you , especially as you

approach retirementapproach retirement

C.C. Health Care DirectiveHealth Care Directive - also called a Medical Power of Attorney. - also called a Medical Power of Attorney.

– ““Keep me alive forever” or Keep me alive forever” or – ““let me die in peace—pull the plug.”let me die in peace—pull the plug.”

– Living Will should contain Living Will should contain

new HIPPA language to avoid new HIPPA language to avoid

problems with doctors problems with doctors

and hospitals.and hospitals.

Drafting a Christian’s WillDrafting a Christian’s Willis your final actis your final actof stewardship.of stewardship.

Consider what’s important to Consider what’s important to you as a believeryou as a believer

and protect your family.and protect your family.

Remember Proverbs 22:3Remember Proverbs 22:3What does a wise man do?What does a wise man do?

Please pass in the data sheets for the Please pass in the data sheets for the Christian’s Will Christian’s Will even if they are not even if they are not totally totally completed.completed.

Time for Questions ???Time for Questions ???

For a Financial Advisor with a Biblical For a Financial Advisor with a Biblical World View or to locate a Christian World View or to locate a Christian

attorney please visit our website or call attorney please visit our website or call us at (800) 688-5800us at (800) 688-5800

www.TheLifeGroup.orgwww.TheLifeGroup.org

For a Financial Advisor with a Biblical For a Financial Advisor with a Biblical World View or to locate a Christian World View or to locate a Christian

attorney please visit our website or call attorney please visit our website or call us at (800) 688-5800us at (800) 688-5800

www.TheLifeGroup.orgwww.TheLifeGroup.org