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The Estate Planning Analogy of Building a Home©
- With Report Card Grading from an "F" to an "A+" -
by Robert E. Alderman, Jr.
The best way I know for explaining the estate planning process, with all the complex and comprehensive procedures involved when it's undertaken properly (particularly from a Biblical perspective), is to compare it to the concept of building a home for the safety and comfort of ourselves and our families.
How well and to what degree an estate planning home or structure will withstand the storms of life and fulfill our stewardship responsibilities can ultimately be evaluated similar to a classroom report card with grades ranging from an "F" to an "A+".
The following is a simple overview of the combined home building and report card concepts, beginning with the highest and then working down to the lowest.
The "A" and "A+" Levels are custom homes and the mansion on the hill:
The "A" and "A+" estate planning structures are those that encompass all aspects of biblical stewardship and in doing so go well beyond the "traditional" estate planning approach that deals only with superficial money issues. To attain the top grade levels of the biblical estate planning process requires the same vision, persistence and patience as that found in the building of a custom home with all the personal amenities and safeguards desired when seeking the very best for our families with the ultimate dream of one day living in that special mansion on the hill. Thus, a long-term relationship between client and attorney similar to that of personal coaching, mentoring, tutoring and/or discipling is the key factor.
At these top, building grade levels, the special details or extracurricular work is that of developing the unique purpose God has designed for each of our lives in this world with the ultimate focus being the prize of eternal paradise. This is what I describe as "whole person" and “real wealth” estate planning/stewardship, because it goes well beyond the basics found at the passing grade levels of a “C” or a “B”.
The "B" level is a solid tract home with upgrades, landscaping and other personal touches:
The "B" grade is the lowest level that qualifies as a true biblical estate planning home. At this level, customization and the beginnings of a coaching relationship are implemented to take the process past that of a mere probate and death tax avoidance structure. This means asking the hard questions, considering the “what ifs” and otherwise building the home to meet the client’s long term dreams, goals, aspirations, worries and concerns.
An additional, very important feature provided at this level (actually raising it to a “B+”) involves post-document-creation funding (e.g. moving all the furniture into the home, completing the landscaping, etc.) as well as a periodic maintenance or upkeep program to keep all features of the estate planning home in working order. (Sometimes, I will relate the importance of these services to that of post operative medical care which is extremely important to make sure the patient doesn’t die from infection or complications after the surgery is completed.)
The "C" level is like a starter or fixer-upper home:
Without extensive counseling and the inclusion of the unique people issues provided at the “B” level, an estate plan may still be sufficient to receive a "C" passing grade for probate and death tax avoidance. This is the limited, "traditional" level of estate planning with a focus almost exclusively on money issues and nothing else. Thus, it does not fulfill the responsibilities of Bible-based stewardship teachings.
Though a “C” grade estate plan will have the frame work of a living trust and perhaps some related ancillary documents such as a pour-over will, health-care power of attorney, and other incidental items, the quality is really like that of a starter or fixer-upper home – meaning it will have a roof, walls and a floor, but no improvements or features to reflect the owner’s personality. It also generally lacks a reinforced foundation or other strength and planning to withstand the storms and challenges of life.
The "D" and "F" Levels involve pitching a tent or backpacking in the wilderness:
When we go below even the traditional living trust estate planning structure with its limited, financial focus and lack of any people-needs customization, we’re at the equivalent of the "D" and "F" estate planning grades. The "D" represents plans built with just a Will and perhaps a power of attorney. The "F" represents no planned stewardship at all in which everything is left to chance or good fortune. For purposes of relating these approaches to home building, the first is the equivalent to tent camping and the latter is like backpacking in the wilderness with no shelter at all.
Biblical and nursery rhyme comparisons:
Often times at seminars, I will give an abbreviated presentation of just the "D", "C" and "B" estate planning/stewardship levels by reciting the "Three Little Pigs and the Big Bad Wolf" nursery rhyme. Such, of course, tells the story of homes that were built, respectively, out of straw, wood and brick and the consequences that followed and should be expected when such structures encounter the wolves of this world.
In the Bible, the shorthand analogy would be the parable told by Christ of the difference between the foolish man who built his house on sand and the wise man who built his house on rock. Such is also summarized in Psalm 127:1 wherein it’s stated: that "unless God builds the house, the workers labor in vain".
The ultimate reality and purpose of estate planning/stewardship responsibilities (dealing with real wealth and whole person assets), however, is found in 1 Corinthians 3:12-15:
For we are God's fellow workers; you are God's field, God's building. According to the grace of God which was given to me, like a wise master builder I laid a foundation, and another is building on it. But each man must be careful how he builds on it. For no man can lay a foundation other than the one which is laid, which is Jesus Christ. Now as any man builds on the foundation with gold, silver, precious stones, wood, hay, or straw, each man's work will become evident; for the day of judgment will show it for what it is, because it is to be revealed with fire, and the fire itself will test the quality of each man's work. If any man's work which he has built on it remains, he will receive a reward. If any man's work is burned up, he will suffer loss. (1 Corinthians 3:9-15)
Thus, the foundation for any successful life and estate planning / stewardship process is our relationship with Jesus Christ. Even if our beginning foundation is on that Rock rather than sand, we each still have responsibilities and will be held accountable for the substance of the structure we build using the varied, yet wonderful blessings with which we have each been entrusted. (Our real wealth and whole person assets.)
The rewards and other consequences eventually received will vary from an "F" to an "A+" according to the manner in which we choose to build our “estate planning” home – both for dwelling in now and for eternity.
May everyone of us seek the knowledge and the tutoring of good counselors as well as the partnership of God to raise our score from whatever it is now to an "A+" - and in doing so to reach the mansion on the hill promised in His Kingdom by building our estate planning home on God’s Blueprint in the Bible.
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