You’ve worked hard, saved faithfully, and want your resources to reflect your values. Two terms often surface in that conversation—estate planning and legacy planning.

They are related, but not the same:

Estate planning makes sure your assets are managed and distributed according to your wishes, in a legally sound and tax‑efficient manner. Think documents, directives, and distribution.
Legacy planning focuses on the impact of those resources—how your faith, story, and generosity shape lives long after you’re gone. Think purpose, people, and perpetual influence.

The best outcomes happen when these two are woven together.

Quick Overview

Topic	Estate Planning	Legacy Planning
Primary Aim	Protect and transfer assets according to your wishes.	Define and fund long-term impact aligned with your values and faith.
Core Questions	Who receives what, when, and how? Who makes decisions if I can’t?	What do I want my life to say? Whom do I want to bless and how?
Typical Tools	Will, revocable/irrevocable trusts, powers of attorney, healthcare directives, beneficiary designations.	Charitable bequests, donor-advised funds, charitable trusts, beneficiary gifts to ministry, endowments, scholarships, letters of intent.
Time Horizon	Primarily end of life and incapacity planning.	Begins now; continues during life and beyond.
Advisors	Estate attorney, tax professional.	Estate attorney, tax professional, planned giving/legacy advisor, ministry partners.
Outcomes	Avoids probate issues, reduces conflict, may reduce taxes.	Multiplies Kingdom impact, communicates values to family, creates sustainable support for ministry.

Myths vs. Facts

Myth: Estate planning is only for the wealthy.
Fact: If you have people you love or anything you own, you need a plan.

Myth: Legacy planning is only about money.
Fact: It’s also your testimony, values, and example to the next generation.

Myth: A will covers everything.
Fact: Beneficiary designations and account titling can override your will—coordination matters.

Myth: I can “set it and forget it.”
Fact: Life changes; your plan should too.

What Is Estate Planning?

Estate planning is the legal framework that ensures your financial and healthcare decisions are honored and your assets pass smoothly to the people and causes you choose.

Key Components

Will – Names heirs, guardians for minor children, and a personal representative.
Trusts – Tools to control timing and manner of distributions, manage taxes, and protect privacy. (Revocable living trusts, irrevocable trusts, special‑needs trusts, etc.)
Powers of Attorney – Appoint trusted people to handle financial or healthcare decisions if you’re incapacitated.
Advance Healthcare Directive/Living Will – Guides medical decisions consistent with your wishes.
Beneficiary Designations – On accounts like 401(k)s, IRAs, life insurance; these override your will and should be reviewed regularly.
Titling & Ownership – Joint tenancy, transfer‑on‑death (TOD) designations, and community property considerations.

Primary Benefits

Reduces family conflict and costly delays.
May minimize probate exposure and taxes.
Provides clarity and care in moments of crisis or incapacity.

What Is Legacy Planning?

Legacy planning shapes the meaning of your estate. It aligns your giving, values, and testimony with practical vehicles that bless the people and ministries you love—during life and after.

Key Components

Values & Vision Statement – A short articulation of your faith, priorities, and the impact you hope to make.
Charitable Bequests – Gifts in your will or trust to churches and ministries.
Beneficiary Gifts to Ministry – Naming a ministry as a partial beneficiary of retirement accounts or life insurance.
Donor‑Advised Fund (DAF) – A flexible account for tax‑efficient giving now and over time, including naming successor advisors (children/grandchildren).
Charitable Trusts – Charitable Remainder Trusts (CRT) for income today and gifts later; Charitable Lead Trusts (CLT) for gifts today and eventual family transfer.
Endowments & Scholarships – Funding ongoing programs, capital projects, or named funds aligned with your passions.
Legacy Letters/Ethical Wills – Non‑legal documents sharing your testimony, blessings, and life lessons with loved ones.

Primary Benefits

Connects resources to calling and multiplies Gospel impact.
Teaches the next generation stewardship and generosity.
Can create lifetime income and tax advantages while funding ministry.

How Estate and Legacy Planning Work Together

Think of estate planning as the structure and legacy planning as the story. Without the legal structure, your story may not be carried out. Without the story, the structure can feel transactional and miss your deepest purpose.

Integrated Example

You create a revocable living trust (estate planning) to avoid probate.
You add a charitable bequest to your trust that funds a scholarship and supports our ministry’s discipleship and recovery programs (legacy planning).
You open a donor‑advised fund today, bunch several years of gifts for a deduction this year, and involve your children as successor advisors (legacy planning).

Which One Do You Need First?

Most families begin with estate planning to cover the legal basics. But inviting legacy planning into the conversation early ensures your documents reflect your heart, not just your holdings. The most fruitful path is to do both—iteratively—so your plan stays current as life changes.

Learn More

Common Planning Tools

Wills & Trusts (Estate)

Revocable Living Trust – Keeps control while alive; can simplify transfer later.
Irrevocable Trust – Often used for tax planning or asset protection; changes are limited.

Beneficiary Designations (Estate & Legacy)

Retirement accounts (IRA/401k), life insurance, and some bank/investment accounts let you name primary and contingent beneficiaries—including ministries.

Donor‑Advised Funds (Legacy)

Contribute cash or appreciated assets, receive a charitable deduction, and recommend grants over time. Name successors to extend your generosity.

Charitable Trusts (Legacy)

CRT – Provides you or a loved one with income for life or a term of years; the remainder goes to ministry.
CLT – Pays a ministry for a term; the remainder can pass to heirs, often with transfer‑tax advantages.

Life Insurance (Estate & Legacy)

Use a policy to replace wealth given to charity or to create a larger future gift by naming a ministry as owner/beneficiary.

Faith‑Formed Questions to Prayerfully Consider

What testimony do I want my resources to tell about God’s faithfulness?
Who are the people and ministries God has placed on my heart?
What portion is God calling me to steward for Kingdom work—now and later?
How can I invite my family into a joyful, multi‑generation posture of generosity?
Who should serve as my trusted stewards (personal representative, trustees, agents)?

Step‑by‑Step: Getting Started

Clarify your values and goals. Draft a one‑page vision for impact.
List your assets and how they’re titled. Include beneficiary designations.
Meet with qualified advisors. An estate attorney and tax professional handle legal/tax design. A planned giving partner helps translate your values into a giving strategy.
Design your plan. Coordinate will/trusts with charitable tools (DAF, bequests, beneficiary gifts, charitable trusts).
Communicate. Share your intentions with your family and selected ministries.
Review annually or at life events. Marriage, birth, adoption, moves, business changes, or tax‑law changes are prompts to revisit your plan.

Practical Scenarios

Young Family – Focus on guardianship, basic will, term life insurance, and starter giving plan.
Peak Earning Years – Add trusts as needed, consider a DAF to bundle giving, and engage kids in generosity decisions.
Retirement – Coordinate Required Minimum Distributions (RMDs), consider Qualified Charitable Distributions (QCDs) from IRAs (age‑based rules apply), and evaluate charitable trusts for income plus impact.
Business Owner – Succession plan, potential CLT/CRT strategies, and gifts of closely held stock where appropriate.

Note: Tax rules are complex and change over time. Always consult qualified legal and tax advisors for your situation.

Glossary

Bequest: A gift in a will or trust.
Beneficiary Designation: Names who receives an account at death.
DAF (Donor‑Advised Fund): A giving account for flexible, tax‑deductible donations.
CRT/CLT: Charitable trusts that combine income and giving.
Executor/Personal Representative: Person who administers your estate.
RMD/QCD: Retirement distribution rules; QCDs may allow direct giving from IRAs (age limits apply).