Grant Morgan conducted two financial stewardship workshops as part of LifeHouse Church’s series on Stewardship towards the end of 2011.
The two workshops were incredibly insightful, but also highlighted how much there is to cover in being diligent around the management of finances, as well as putting things in place for spouses and the next generation in the event of your death.
In fact, there was so much information and so much to digest that we didn’t get through all the material and LifeHouse Church will be looking to carry on the workshops in early 2012.
Here is a diagram of the kind of topics that were covered over the two weeks – although we did not get to all of them.
Accountability was seen as the starting point on all matters financial with Gary Bradshaw (who leads LifeHouse Church) suggesting that people are accountable to at least three other people around their budgets and financial decisions.
Much of the first session centred around putting things in place in the event of death, particularly unforeseen death and what happens when someone dies.
Grant said the key focus for him was getting everything in place so that in the event his death, a lack of planning would not become an increased burden on his family.
Key focus here includes getting all the documentation together so that family members have everything they need. This includes:
• IDs, marriage certificates, etc.
• Tax numbers.
• Where the will can be found.
• All necessary contacts (brokers, etc).
• Executer’s details on the will, Guardian’s details, trustee’s details.
• Insurance details.
• Budgets, etc.
The will was a main focus. Some important information that was highlighted included the fact that bank accounts become frozen when you die and all accounts in your name; like cellphone accounts, utility bills, etc; are also frozen.
This has huge RICA and FICA implications if a spouse dies and everything is in their name!
It was also pointed out that if family members are not named as executors with the power to delegate, then executors (bank, attorneys or the state) will not always act in the beneficiaries’ best interests.
Guardians of children and trustees to administer the assets of minors were also special focuses which require a lot of thought for those who have children.
Other things to think about regarding wills include planning for the next generation and how estates get taxed. With up to R3.5 million able to be given to someone other than your spouse without incurring tax and R100 000 being able to be made in donations, parents can leave at least R7.2 million tax free to their children. This has to be structured in the will though.
There are practical consideration around whether the will has been properly drawn up and whether the will is constructed in such a way so as to wrap up the estate in the quickest possible time, especially when minors are involved.
Living wills also need to be considered in the event that you are comatose in hospital, so that family know how you would want that situation handled.
The second session looked at estate planning, briefly at tax, how to get control of debt if you are in debt, and investments.
There were some really useful tips on how to begin thinking about investments and what the bible says about wealth creation.
Another spin off of the workshops was that people started sharing ideas and testimonies. Grant had some very insightful stories to share about lessons learnt from parents and parents-in-law passing away. Others shared testimonies about how they handled appointing guardians, whether to have a joint will or separate wills and how to re-evaluate expenditure to free up short terms cash flow to assist with paying off debt and saving/investing for the future.
In future workshops LifeHouse Church will be looking at practical steps like budgets and how to start investing for the future. We’re also looking at practical ways to share information and help people within the community to become better stewards.
Click here are the notes from the two sessions and a check list of documentation needed should you pass away.
If you would like to be included in future workshops, email LifeHouse Church on admin@lifehousechurch.co.za