Again, we want to express to you our appreciation for your continued reading of Christian Steward. In this issue, we begin to explore giving during lifetime . . . to families, friends, and to help reach the lost and hurting world around us.

How much should we accumulate and what should we do with anything more than our present needs? In this and future issues, we will discuss the pros and cons of retaining accumulated assets, the problems and advantages of lifetime gifts, and the tax and spiritual implications.

We will also continue looking at the tools we use in the estate planning process. In this issue, we will take an in-depth look at the marital deduction, as the beginning of our study on federal estate taxes.

And of course, we'll continue our study From the Word.

Questions About Stewardship That No One Ever Asked

Why did the steward hide his talent in the ground? (Matthew 25:14)

After a time, the master returned to settle his accounts with his servants. The servants who had invested the master's property brought it back with an increase, and received the reward, "Well done, good and faithful servant: you have been faithful with a few things, I will put you in charge of many things: come and share your master's happiness."

But the one who hid the money received a different response from the master. "Thou wicked, lazy servant . . . Take the talent from him, and give it to the one who has the ten talents . . . and throw that worthless servant outside into the darkness where there will be weeping and gnashing of teeth."

There are many interpretations of this parable. But the haunting question is, Why did the servant dig a hole in the ground? Why didn't he put the money in the bank or purchase stocks, bonds or real estate?

Maybe . . . the servant knew that to invest the money, he would have to title it in his master's name, the owner of the property.

Maybe . . . he thought that the master would not return from his long journey. Illness, an accident, or thieves and robbers along the road could have prevented his return.

Maybe . . . he knew that if he invested the money and the master did not return, the property would become part of the master's estate, and would be distributed to his heirs.

Maybe . . . he thought if he buried the property and the man did not return, he could dig it up and keep it as his own.

As Christians, do we realize that what we have is owned by the Master and has been entrusted to us for care . . . for a period of time . . . as stewards?

Property is not ours, but is owned by God. We are caretakers, trustees, servants, stewards. Stewardship is "using God-given abilities (verse 15) to manage God-owned properties (verse 14) to accomplish God-ordained results (verse 27)."

There will be a reward for our stewardship, when we hear the Master's, "Well done, thou good and faithful servant."

To fully understand the marital deduction, we need to understand basic estate tax laws.

To fully understand what is included in the estate for tax purposes, let's look at an outline of the property listing on a federal estate tax return.

Real Estate
Miscellaneous Property
Stocks and Bonds
Lifetime Transfers
Mortgages, Notes and Cash
Powers of Appointment
Insurance on Descendant's Life
Annuities
Jointly Owned Property

From total value of these properties (the gross estate) we can take deductions for:

Funeral/Administration Expenses
Marital Deduction
Descendant Debts, Mortgages, Liens
Special Use Valuation
Net Losses During Administration
Charitable Deduction

This gives us the taxable estate. However, a tax credit is available. This credit is changing each year, but will cap at a value equal to the tax on $1 million of estate assets.

The value of your estate in excess of this amount will be taxable. However, it is not necessary to pay a tax at the death of the first spouse. This tax can be avoided by qualifying property for the marital deduction.

Now, let's look at what qualifies as marital deduction property.

Property Qualifying for the Marital Deduction

• Outright gift.
• Transfer in a revocable trust.
• Transfer in an irrevocable trust or life estate where the surviving
  spouse receives lifetime income and has a general power of appointment.
• Transfer in a trust where income is distributed or accumulated, but
  the entire assets of the trust are included in the estate of the surviving spouse.
• Transfer of life insurance proceeds payable under a settlement option.
• Transfer in a qualified terminable interest property (Q-TIP) trust. The spouse receives all income, and the trustee can use the principal for the benefit of the surviving spouse. At the death of the surviving spouse, the remainder is payable to beneficiaries designated by the first spouse.

In Og Mandino's book, "The Greatest Success in the World," he makes the following statement:

"To die and leave behind one's wealth for distribution is the very essence of selfishness, indulged in usually by those of means who gave not even a penny when alive."

When an individual has accumulated more than enough to provide for the necessities, and some enjoyments of life, we believe there are two questions that person should ask.

Q : How much? If I could never work another day, how much do I need to make sure that my family and I will be cared for in future years?

"How much" depends upon lifestyle, personal needs, family, and giving to support the church and other charitable organizations.

But for every person, there is an amount that would be sufficient. How much is that for me?

Q : Why? Why has God entrusted to me more than what is sufficient? There must be a reason. We have defined stewardship as: "Using God-given abilities, to manage God-owned property, to accomplish God-ordained results."

What results does He wish for me to accomplish with that which is more than the necessities of life?

The Gift of Giving

We believe the first step in answering the "Why?," is to honestly ask God if you have the gift of giving. Romans 12 talks about an ability that is to be presented to God as an act of worship, so that we can take our places in the body of believers, to help meet the needs of the body. One of these abilities is the equipping necessary to fulfill the gift of giving.

This is an important gift in the body of believers.

If you believe God has given you the ability to accumulate wealth, to fulfill the gift of giving, then it's important for you to develop a long-range plan. You need to mature spiritually, and organize your priorities to use your gift with maximum efficiency and effectiveness.

In other words, you need to clearly define your "God-ordained results," and set out to accomplish them. For some, it might be to start planning for the distribution of assets entrusted to them.

Mr. Mandino goes on in his book to give us nine commandments for success. The eighth commandment is this, "Thou shalt lighten thy load, if ye would reach thy destination." Many of us have allowed ourselves to be weighed down by heavy baggage, in the name of security. Our journey through life has become punishment rather than pleasure. Maybe it's time to "Lighten thy load."

In future articles, we will talk about giving during lifetime . . . to family, to friends, and to our charitable organizations. Our next topic will be a basic rule of giving, "Never give away anything there is any possibility you will ever need any time in the future."

We look forward to the opportunity to share with you the reasons why this is so important.

Possibly no other industry has changed as much in the past few years as the life insurance industry. And many changes have been very favorable.

Because of increased investment earnings by insurance companies, and the increased life expectancy of individuals, older, existing policies may be obsolete or too costly. New products recently introduced by the insurance industry may more adequately meet your life insurance needs.

Perhaps your responsibilities have changed. New family members, children who no longer are dependent, business obligations, and growth in estate assets point to the importance of a periodic review of your insurance program.

If you have not reviewed your life insurance program within the last two years, why not take time today to call your agent and make an appointment?

And as you review your program, make certain that your life insurance beneficiary arrangements are coordinated with your estate plan. Many estate plans fail to accomplish their purposes because beneficiary arrangements have not been coordinated with the total estate plan.

Life Insurance and Charitable Giving

Many friends of Manhattan Christian College also find that life insurance is an excellent way to make a gift to our ministry. Not only is it easy and convenient, but often it is one of the most thoughtful gifts you can make.

You might have property that you want to distribute to family members, but still want to support the ministry of Manhattan Christian College through your estate plan. With a gift of life insurance, your estate assets are not diminished, because the gift of life insurance is an amount in addition to your estate.

We trust you have found the information in this issue of Christian Steward to be of interest and value.

And now, may we ask a favor? Many of you have been receiving Christian Steward for some time. From time-to-time, we have received comments on the value of the information, and we know that we are meeting the needs of some.

But we want to constantly improve the quality of our information. In each issue of Christian Steward, we give you the opportunity to request additional information in a Special Planning Report. With this issue, we would also like to ask you for additional information.

We have enclosed a questionnaire. You need not sign your name, and we have furnished a business reply envelope, so it will cost you nothing . . . except your time.

Please complete this questionnaire so that we will know to whom we are writing, your needs, and whether or not we are meeting those needs.

We know you have received questionnaires in the past, and we know it is easy to put them aside. But it is important for us to continue to do the best job we can. And we can only do that with your help.

© Lifestyle Giving, Inc., 2002. Printed by permission.