1. Copyright 2004 © David Wills Planning and Your Progeny: An Heir Raising Experience Generous Giving Another Step Toward His Likeness Orlando, Florida February 19 - 21, 2004 David H. Wills President National Christian Foundation

2. Copyright 2004 © David Wills Three Keys to Planning It is not about the money.It is not about the money. Those who are well planned give more wisely.Those who are well planned give more wisely. Until we set finish lines we cannot give as God intends.Until we set finish lines we cannot give as God intends.

3. Copyright 2004 © David Wills ? > $ ? > $

4. Copyright 2004 © David Wills My Dear Old Daddy Used to Say: If you don’t know where you’re going, you’ll get there every time. OR If you fail to plan, you’re planning to fail. OR If you don’t get you’re ducks in a row, something will run afoul.

5. Copyright 2004 © David Wills What comes to mind when you think of estate planning?

6. Copyright 2004 © David Wills Definition of Estate Planning: “The orderly distribution of one’s wealth into fees and commissions.”

7. Copyright 2004 © David Wills Perspective & Planning Good estate planning is often not good tax planning. Wealth transfer planning is a process, not a point in time. T HE N ATIONAL C HRISTIAN F OUNDATION

8. Copyright 2004 © David Wills Perspective & Planning FINISHLINEFINISHLINE Needs & Wants You & Your Children & Grandchildren… Giving Goals & PlanShortLong

9. Copyright 2004 © David Wills DeathClock.com The Internet’s friendly reminder that life is slipping away…second by second. Daryl Heald Thursday, April 22, 20381,078,482,840 Hugh Maclellan Sunday, Sept. 15, 2014 302,178,790 Bob HornerThursday, Nov. 28, 2015 334,490,588 Jeff ReeterTuesday, July 17, 2035 991,218,707 Chip Ingram Saturday, April 1, 2028 760,813,633 Sam WillsThursday, July 7, 20782,347,353,875 604,800 seconds in a week!

10. Copyright 2004 © David Wills Perspective & Planning Purposeful Planning WHY... WHAT... Should be my objectives? *Accumulation *Utilization HOW... *Preservation *Disposition Do I accomplish the objectives? Do I possess what I possess? Family Stewardship Philosophy

11. Copyright 2004 © David Wills Perspective & Planning Purposeful Planning WHY... WHAT... Should be my objectives? H Accumulation H Utilization HOW... H Preservation H Disposition Do I accomplish the objectives? Do I possess what I possess? Family Stewardship Philosophy

12. Copyright 2004 © David Wills Perspective & Planning Purposeful Planning WHY... WHAT... Should be my objectives? H Accumulation H Utilization HOW... H Preservation H Disposition Do I accomplish the objectives? Do I possess what I possess? Family Stewardship Philosophy

13. Copyright 2004 © David Wills Perspective & Planning Purposeful Planning WHY... WHAT... Should be my objectives? H Accumulation H Utilization HOW... H Preservation H Disposition Do I accomplish the objectives? Do I possess what I possess? Family Stewardship Philosophy

14. Copyright 2004 © David Wills Perspective & Planning Purposeful Planning WHY... WHAT... Should be my objectives? H Accumulation H Utilization HOW... H Preservation H Disposition Do I accomplish the objectives? Do I possess what I possess? Family Stewardship Philosophy T HE N ATIONAL C HRISTIAN F OUNDATION

15. Copyright 2004 © David Wills Perspective & Planning Purposeful Planning WHY... WHAT... Should be my objectives? *Accumulation *Utilization HOW... *Preservation *Disposition Do I accomplish the objectives? Do I possess what I possess? Family Stewardship Philosophy

16. Copyright 2004 © David Wills A Test for the men… T HE N ATIONAL C HRISTIAN F OUNDATION

17. Copyright 2004 © David Wills 9 Essential Vitamins for Passing on Wealth to Your Heirs Vitamin A – God’s Word… Ecclesiastes 7:11-12 “Wisdom, like an inheritance, is a good thing and benefits those who see the sun. Wisdom is a shelter as money is a shelter, but the advantage of wisdom is this: wisdom preserves the life of its possessor.”

18. Copyright 2004 © David Wills Vitamin B: Understand the relationship between the 3 forms of Transferable Capital Spiritual Financial Character

19. Copyright 2004 © David Wills The Paradigm of Transferable Capital 1.Spiritual Capital is necessary for the development of true Character Capital. 2.A strong work ethic is usually necessary to build strong Character Capital. 3.If Spiritual and Character Capital are strong and tested, it may be advisable to impart Financial Capital. 4.If Spiritual and Character Capital are not strong and tested, it is, typically, not advisable to impart Financial Capital.

20. Copyright 2004 © David Wills Vitamin C: Do No Harm What mean you fellow citizens that you turn every stone to scrape wealth together, but take so little care of your children to whom one day you will relinquish it all. Socrates I do not only ask, “Will my fortune be safe with my children?”, I also ask, “Will my children be safe with my fortune?” Andrew Carnegie

21. Copyright 2004 © David Wills Vitamin D: Ask Hard Questions Will this transfer of wealth: build spiritual capital in my children? build character capital in my children? negatively impact a strong work ethic in my children? increase their standard of living without them having to work for it? give Satan an opportunity to bring calamity?

22. Copyright 2004 © David Wills More Hard Questions 1. How much of your net worth did you receive as an inheritance before age 45? 2. Were you given the opportunity to develop a strong work ethic prior to receiving an inheritance? Are you thankful for those years? Why or why not? 3. Was the development of this work ethic important in the development of your character capital? 4. Would you want to possibly deprive your children and/or grandchildren of this important aspect of life?

23. Copyright 2004 © David Wills Vitamin E: Leave less rather than more, early on. Pass on, while living, an amount you can watch. This will help you determine if your children are wise stewards. This is effective in both financial and philanthropic gifts. Not leaving substantial wealth early on will encourage a stronger work ethic which may build stronger character capital. Not leaving substantial wealth early on will encourage a stronger work ethic which may build stronger character capital.

24. Copyright 2004 © David Wills Vitamin F: Don’t ask, “How much can we leave our kids?” Ask, “How much will they need?”

25. Copyright 2004 © David Wills Vitamin G: The goal is to leave behind kids that are “content whatever the circumstances.” “If we produce kids that are productive and content, and this has been tried and tested, it almost doesn’t matter how much we leave them. If our children are consumptive and discontent, we won’t be able to leave them enough.” Russ Crosson, President, Ronald Blue & Co.

26. Copyright 2004 © David Wills Vitamin H: Handle the “equality” issue with great care. The question is not what is fair, but what is right. The real questions are, will your children need your money and will they use it wisely? If the answer to the first question is no, then you should not feel compelled to leave it to them. If the answer to the second question is no, you should feel compelled not to leave it to them. If the answers markedly differ from child to child, you should deal differently with them according to those real differences. Randy Alcorn

27. Copyright 2004 © David Wills Vitamin I: If your kids don’t want an inheritance they are good candidates to receive one. Question: What would your kids say if they heard you were going to give all you had to Kingdom work?

28. Copyright 2004 © David Wills A Back-to-Back Test Write down how much your family gave to charity last year. Write down how much your family gave to charity last year. Write down how much you gave to your children last year. Write down how much you gave to your children last year. Write down your family’s net worth. Write down your family’s net worth. If the two of you died today, how much would go to your children/grandchildren? If the two of you died today, how much would go to your children/grandchildren?

29. Copyright 2004 © David Wills B 3 <> TiH x