Stewards for Family, Church, Community: Settling Accounts

The earth is the LORD’s and all it holds,

the world and those who dwell in it. Psalm 24:1

Legally, stewardship refers to a legal fiduciary duty to care of another person's property for the benefit of the true owner of the property. In the Gospel, Jesus provides with many parables about stewardships.

Estate Planning is the most important stewardship as that one will ever undertake.

As steward of earthly assets, we are given a free will to make decisions how to be use of material wealth. It is our responsibility to be knowledgeable about opportunities to provide for our family, churches, and community.

Ultimately in planning an estate, as stewards we are left with three basic choices for leaving assets.

First, we can leave assets to our family and other people we love who have been meaningful to us during our lives. 

Second, we can leave a portion of our assets to those institutions, including churches that have impacted us and will continue to impact the world after our death.

Finally, we can leave assets to the Internal Revenue Service, through estate taxation.

In Matthew’s Gospel, Jesus tells us, “Render to Caesar the things that are Caesar's; and to God the things that are God's." But through estate planning, we are empowered to render less to Caesar.

“Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes. Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands.”

Judge Learned Hand, U. S. Court of Appeals in the case of Gregory v. Helvering 69 F.2d 809, 810 (2d Cir. 1934), aff'd, 293 U.S. 465, 55 S.Ct. 266, 79 L.Ed. 596 (1935)

Due to recent increases in the Federal Estate and Gift Tax Rates, individual could leave $11.4 million to heirs and pay no federal estate or gift tax, and a married couple could be able to shield $22.8 million. While estate tax may not be a threat to the vast majority of people, it is important to recognize that there are also income tax and capital gains tax that can effect even small estates.   Thus through estate planning, there are opportunities to minimize income and capital gains taxation.

As stewards, are we not called to minimize estate, income and capital gains taxation through proper and legal methods.

 It is  empowering to legally re-direct assets to family and  institutions that might better reflect our religious values, rather than to the government, which may not always spend our money prudently or consistent with those values.