Planning for the Future (Part 2A)

Last week, we introduced the importance of planning ahead and how a thoughtful estate plan protects your loved ones from confusion, conflict, and unnecessary pressure. This week, we shift from understanding why planning matters to taking practical steps that bring clarity and protection to the people you love.

Whether you are single or married, a parent or not, a business owner or an employee — every adult needs a few foundational documents to ensure their wishes are honored. These tools are not complicated, but they are essential. Without them, major financial, medical, and personal decisions can be left to courts, default state laws, or individuals you might not have chosen.

This part of planning is not about wealth; it is about stewardship. It is about caring for your family with wisdom and intention.

💡 This Week’s Focus: Putting Your Wishes in Writing
The foundation of any strong estate plan begins with three key documents: your will, your trusts, and your beneficiary designations. These are the tools that determine how your assets are distributed, who will receive them, and how your intentions are carried out after you are gone.

By understanding what each of these documents does and why they matter, you can take confident steps toward protecting your family, bringing clarity to your financial life, and avoiding the confusion that so many loved ones face when no plan is in place.

📖 Verse of the Week
“The heart of man plans his way, but the Lord establishes his steps.”
— Proverbs 16:9 (ESV)

Planning with wisdom honors God, but we trust Him to guide and establish our steps as we steward what He has placed in our hands.

The Essential Documents Every Adult Needs

1. A Will: The Foundation of Every Plan

A will is the most basic — and most essential — part of any estate plan.

A will clarifies:
• How your assets should be distributed
• Who will be responsible for managing your affairs
• Who will care for minor children
• How personal and sentimental items should be handled

Without a will, state law decides these matters for you — often in ways that do not reflect your heart or your intentions.

Even a simple will protects your loved ones from months of unnecessary stress, confusion, and legal expense.

2. Trusts: When You Need More Than a Will

A will distributes your assets, but sometimes you need more control and protection than a will alone can provide. That’s where a trust comes in.

A trust is a legal arrangement that lets you place assets under the care of a trustee (a person or institution you choose) who manages those assets for your beneficiaries according to the rules you set.

A trust can be set up to start working while you’re alive or to take effect only after you pass away, depending on the type of trust you create.

A trust is helpful when you want to:
• Provide guardrails for someone who may not manage money well
• Ensure money set aside for young children is managed responsibly, so caregivers cannot misuse funds and the child’s needs are fully protected
• Protect young adults from receiving a large inheritance too soon, by releasing funds gradually or at certain ages
• Maintain privacy (trusts are not public record like wills)
• Avoid probate for the assets placed inside the trust
• Provide long-term stability or oversight for a beneficiary

A trust doesn’t replace your will — it works alongside it to give you more control, clarity, and peace of mind.

👉 If you have a child with special needs, a traditional inheritance may not be the best option. Specialized planning — often through a trust — helps protect their care, benefits, and long-term stability, and I encourage you to seek guidance from a qualified professional as you put a plan in place.

3. Beneficiary Designations: The Simple Step Most People Forget

Many assets skip the will entirely and go straight to the beneficiaries listed on the account, which is why outdated beneficiary forms can cause major problems even if your will is perfectly written.

These include:
• Life insurance
• Retirement accounts (401(k), 403(b), IRA)
• Annuities
• Transfer-on-death (TOD) or payable-on-death accounts

Because beneficiary designations override your will, it is critical to review them regularly — especially after major life events like marriage, divorce, births, or deaths.

Many people unintentionally leave an ex-spouse or outdated beneficiary in place simply because the form was never reviewed — a simple oversight that can completely change who receives your assets.

🎯 Weekly Challenge

• Take five minutes this week to review the beneficiaries on at least one major account — your retirement plan, life insurance policy, or bank account — and make sure they reflect your current wishes.

💬 Reflection Questions

1. Do my current beneficiary forms accurately reflect my intentions?

2. Have I reviewed or updated these forms since any major life changes?

3. Is there anyone who needs to be added, removed, or confirmed as a beneficiary?

📢 What’s Coming Next
Next week, in Part 2B, we’ll continue exploring the essential documents every adult needs, including your Power of Attorney, Healthcare Proxy and Advance Directive, and a plan for managing your digital life — along with practical steps for completing and storing everything securely.

Stay faithful. Stay intentional. Steward well what God has entrusted to you, today and for the generations to come.

🔁 New here or missed a few? Catch up on past newsletters at financebyfaith.beehiiv.com

Blessings and financial peace to you!