How to leave a true legacy to the next generation
Just as Abraham did in Genesis 25:5-6, it is biblical to do estate planning—that is, deciding how your money and assets are to be divided when you die. The following is gleaned from a presentation by estate planning attorney Angelo Cabrera at the N5 Conference in 2022,1 a Kingdom-focused conference on personal finance. Mr Cabrera shared his wisdom on how to leave not just wealth but a true legacy to the next generation.
A biblical perspective of wealth
Just like Maslow’s hierarchy of needs, there is a hierarchy of financial needs as well.
At the basic level is the need for financial protection, which is anything that ensures that the family is taken care of in all circumstances. Savings refers to the portion of income set aside for future needs, such as buying a house or a car, or paying for our children’s education. As we advance in our careers, we begin to look for different instruments to grow our savings. This forms our investments. Yet estate management sits at the top of this hierarchy for a reason: it forces us to examine a deeper question—who does wealth actually belong to?
Financial protection and savings are about being financially well. Investments and estate management are about wealth management, which enhances what you already have. But before we can pass on our earthly assets to the next generation, we need to have a proper perspective of wealth.
Angelo Cabrera, an estate planning attorney from the Philippines, explained the biblical perspective of wealth this way: “God is the owner of everything, from the heavens to the earth, the gold and silver … We are the managers. Ownership and stewardship—those are two different things. When we confuse our roles, and we begin to think of ourselves as the owner and not merely the managers, we begin to have a tight grip on wealth. Wealth will become a god to us and then we make wrong decisions about wealth.”
There are far greater reasons why God has entrusted us with wealth. These reasons, Cabrera maintained, should inform how we approach estate planning.
Three principles of estate planning
Quoting pastor and author Charles Swindoll, Cabrera said that estate planning is “an act of stewardship being passed on to the next steward”. He added his own definition: Stewardship is the effective utilisation, conservation and timely distribution of God’s resources entrusted to a person to enable him, his family and communities to enjoy the blessings of wealth during and after his lifetime.
Stewardship is the effective utilisation, conservation and timely distribution of God’s resources entrusted to a person to enable him, his family and communities to enjoy the blessings of wealth during and after his lifetime.
1. Plan to bless
Estate planning is not only about facing the reality of death; it is about living life to the fullest. Wealth is not only intended as a blessing to us. It is intended, more importantly, to be a channel of God’s love and mercy not only to our families but even to our church and to the least of our brethren.
2. Plan for family unity
Beyond keeping your wealth intact, estate planning is about keeping your family whole. Parents need to plan how their estate is to be divided upon their death. If not, potential squabbles over inheritance could break families apart.
He cautioned, “When parents don’t plan, it’s almost like pushing their children into a boxing arena. Sure, we hope that they don’t fight. But it only takes so little for family members to fight when it comes to property and money.”
He advised against letting the children co-own property because decisions to divide the property may end up being inequitable and cause conflict. When that happens, the family falls apart and the property, left idle, could depreciate in value. Instead, his practical advice was to earmark properties and decide who should inherit each one.
3. Plan for the discipline of stewardship
Passing on the principles, values and disciplines of stewardship is as important as passing on the wealth itself. He elaborated on three disciplines of stewardship:
a. Tithe
Honouring the Lord “with your wealth and the firstfruits of all your produce” (Proverbs 3:9) is a basic principle of stewardship.
Cabrera told of the time when he was about to receive his first fee as a lawyer, a profession he entered at the age of 50. The Word of God to honour the Lord with his firstfruits convicted him that God was asking for not just a tithe but the entire first fee he would receive as a lawyer.
When he received the cheque, it was a six-figure sum. He said: “I showed it to my children first. It was my way of telling them, ‘This is the way.’ Then, I gave everything to the Lord.”
He went on to describe how God made good on the promise that “then your barns will be filled with plenty, and your vats will be bursting with wine” (Proverbs 3:10). Two days later, he was hired by a client on a retainer. The monthly compensation was equal to what he had given away.
b. Recognise that everything comes from God and is to be used for his purposes
What are God’s purposes for our wealth? The first is to help others. The second is to build the Kingdom of God for the generations to come. The third is to be diligent.
The Bible says, “The hand of the diligent makes rich” (Proverbs 10:4). If we pass on wealth to lazy children, it will simply be sold, used and consumed, leading them into poverty. Proverbs 20:21 provides a stark warning—“An inheritance gained hastily in the beginning will not be blessed in the end.“
Cabrera shared that he advises clients against giving away their wealth during their lifetime as it could make them dependent on their children. It could also cause the children to be reliant on their inheritance instead of their God-given ability to produce their own wealth. If money or assets are given to the next generation during one’s lifetime, then do so for the right reasons, such as providing capital to help a son start a business and providing a down payment for a house to help a daughter start a family.
c. Model godly stewardship
We should also be concerned about passing on wealth that has eternal value, that is, spiritual wealth. We can do by modelling a life of godliness and faithfulness before our children. Lead by example and steward God’s resources so that our children can witness it for themselves. Show them what it means to have a life that is wholly surrendered to the Lordship of Jesus Christ and point them to no other but the person of Christ.
If we can finish our earthly race with the understanding that “The Lord is my chosen portion and my cup” (Psalm 16:5) and it is he that gives security, how wonderful that would be. This is the best and enduring legacy we can leave our children.
