Thank you for taking time from your busy schedule to read this issue of Christian Steward. This is our third issue, and we are excited about the response we are receiving from you, our friends.

In this issue, we will begin a discussion that we will complete in issue four. We will cover one of the most important areas of estate planning . . . how property is owned and the priorities by which property is transferred from one owner to another, both during lifetime and at the time of death.

Many estate plans that fail to accomplish an individual's desired distribution, fail due to lack of understanding of these two items. We trust that you will find this information to be of interest and help to you.

In the last issue of Christian Steward, we shared with you the first of five basic steps of developing a giving lifestyle. As you will recall, the first step is recognition that the basis of all stewardship is work, "By the sweat of your brow you will eat your food."

In this issue, we want to look at the second step, "Man shall take a percentage of that which he earns and give it." There are several reasons why this is important.

The first reason man should give is that giving is worship. The first time the word worship is used in the Scriptures is in Genesis 22:5, when Abraham took his son, Isaac, to the mountain to make a sacrifice.

From that point on in the Scriptures, the word sacrifice is used frequently in relationship to worship. (And in the Old Testament, sacrifice was always synonymous with offering.)

Secondly, giving a percentage of what we earn recognizes God's ownership of all. The cattle on a thousand hills . . . houses and lands . . . silver and gold . . . in fact, the earth in all of its fullness belongs to God. When we take a percentage of what we earn and give it, it is in recognition of His ownership.

The third reason we give is that it is part of God's plan to meet the needs of His people. In the Old Testament, the tithe was used to care for the priests, Levites, strangers, the fatherless, and the widows.

Jesus says, when we give to those who are in need, we do it unto Him. And in the New Testament there is evidence that our giving is to care for the needs within the body of believers.

And the fourth reason we give is to take the Gospel into all the world. We give through the local church, educational organizations that are training young people to go, sending agencies, or those who are caring for the needs of a lost, dying and hurting world. All are financed as we take a percentage of that which we earn and give it.

This is part of God's plan. And as you continue to develop your lifestyle of giving, God will continue to use you in exciting and unusual ways.

• Individual Ownership

This is property that you own in your name only, no one else's name appears on the title.
• Tenancy in Common

This is undivided interest in property that you own with another individual.
• Joint Tenants with Rights of Survivorship

This is also an undivided interest in property that you own with another individual, but has a special provision that at the death of one owner, the survivor will own the entire property.
• Tenants by the Entirety

This is the same as joint ownership with rights of survivorship, except that it can only apply to property owned by a husband and wife. For estate planning purposes, it is identical. However, generally, property held as tenants by the entirety cannot be sold during lifetime without the consent of the spouse.
• Community Property
Certain states are considered community property states, and find their basis of law in the old Spanish law. These states are:
Louisiana, Texas, New Mexico, Arizona, California, Washington, Idaho, Wisconsin, and Nevada

If you are married and have acquired property after your marriage or after the establishment of the community property ordinance in one of these states, each spouse owns one-half interest in the property.

PROPERTY OWNERSHIP AND DISTRIBUTION AT DEATH

For estate distribution purposes, consider property ownership in two categories:

Property passing through your will at the time of death:

• Individual ownership
• Your portion of tenancy in common
• Your portion of community property

Property passing to a joint owner at the time of death:

• Joint tenants with rights of survivorship
• Tenancy by the entirety

The coordination of property ownership with the legal instruments of your estate plan at the time of death is important, to guarantee that your desires for distribution will be carried out.

If property passes through joint ownership at the time of death, it may not be coordinated with the expression of your desires for distribution of your property in your will.

Don't misunderstand, property does not have to be distributed by your will at the time of death, since it would be subject to the cost and delays of probate. However, coordination is important, so that the resulting distribution will be what you desire, and what you understand to be God's plan of stewardship for your estate.

In addition to the five ways listed above, there are other peculiarities to property ownership that will affect transfers at the time of death. These include a Totten trust, transfers with retained life estate, life insurance beneficiary arrangements, and specific trust arrangements. Each of these forms bypasses probate and property is distributed outside distribution expressed in the will.

In our next issue of Christian Steward, we will further expand upon property ownership and share with you the four priorities of transfer of property at the time of death.

Today, many organizations are asking you to give to them. And many are worthy to receive your gift.

However, there is much abuse in seeking gifts, in the propagation of crises and the use of gimmicks to attract your gift.

Sometimes there are true crises. In fact, we have experienced shortages of cash needed to do what we believe God has called us to do. And during those times, we have appreciated the extra gifts our friends have sent to help us carry that financial burden.

But if those who believe in Manhattan Christian College would share with us each month, we would probably not experience those extreme financial needs.

That's why we would like to encourage you to make a monthly commitment to the mission of Manhattan Christian College. Your monthly commitment would let us know that you want to be a part of this mission, that you are concerned and want to help insure our financial security.

We believe that if individuals give to the organizations to which they are committed, on a systematic basis, eventually the crises appeals will disappear. Again, please don't misunderstand, there will still be organizations with financial needs. But those who are using crises to raise funds for ongoing operations will find that it doesn't work, because the body of believers will be committed to systematic giving to "their" organizations.

And for those who are operating on sound financial bases and have proper budgets, their needs will be met on a systematic, continuous basis.

But most important, God will be glorified. With crisis appeals, we in effect tell the outside world that the God we serve is not able to meet our needs, and that does not bring glory to His name. It presents no honor to Him when we have bills that are past due and we are unable to carry out that mission that He has placed upon our hearts.

Please consider sending your financial support each month. The Lord will bless you for it. We have provided a space on the enclosed response card for you to make your monthly commitment. Please use the card to let us know that we can rely upon your regular, systematic support.

Did we get your attention? Certainly, all of us would like to increase our incomes, to afford items of necessity or enhance our lifestyles. And many of us would like to be able to give more.

There may be a way that you can do both. You can increase your income by taking property that is currently producing a low return and transferring it to an agreement that provides additional income. And part of that income may be received tax-free.

And with that same agreement, you can make a gift to Manhattan Christian College. From your gift, you will receive a current income tax charitable deduction, resulting in your payment of lower taxes, and your return on your investment will actually be increased.

We can help you increase your income as you make a gift. Here's an example.

Probably most important, Mrs. Smith has the satisfaction of knowing that while she is living, a portion of her money is being used to help in the ministry of Manhattan Christian College.

Naturally, the circumstances would be different for you. However, if you are retired or near retirement, if you have appreciated property, or would simply like to know how you can make a charitable gift and retain the income, please write for our Special Planning Report, How to Give When You Can't Afford To. It will give you complete details on how this agreement would work in your situation.

You have hundreds of personal property items in your home or apartment. Most items subject to loss by fire, theft, or vandalism, are covered by your insurance policy. But if they were missing or damaged, could you provide your insurance company with a complete inventory and accurate estimated values?

You've heard it before, but let this be a gentle reminder: Make an inventory of the contents of your home, particularly of your most valuable possessions. Do it now. Even if you have insurance on your home's contents, filing a claim can be difficult without an accurate inventory at hand.

You may acquire an inventory form from your insurance agent or a store that sells safes and smoke alarms. Or you may simply make a listing.

It's also a good idea to take photographs of room settings and your more expensive or unique possessions, such as china, works of art and antique furniture, making sure details important to an item's value show up.

Your inventory, pictures, and related documents should be kept in a safe place, such as a safe-deposit box at your bank or a home safe. You may also wish to give a duplicate copy of the inventory to a friend or relative, or keep a copy where you work.

And while you are thinking about your household goods and personal effects, does your will distribute them according to your desires?

Most states allow for a separate letter of instructions to make distribution of household items. Such a letter would be placed with the will, giving specific instructions for distribution of personal items.

It is important that a clause also be included in your will, stating your general desires for distribution, should no letter of instructions be found.

The letter of instructions allows you to easily reflect changes in property ownership, desires concerning distribution of property, or to make lifetime gifts. Changes can be made without the legal form or complications of a will.

Thank you again for your interest in developing your personal lifestyle of giving. In addition to the special planning report, How to Give When You Can't Afford To, please let us know how we can help you.

© Lifestyle Giving, Inc., 1994, 1999. Printed by permission.