Proverbs 13:22 tells us, “A good man leaves an inheritance to his children's children…” But while the Bible emphasizes the importance of leaving an inheritance, it doesn’t provide a step-by-step guide. That’s where careful planning and biblical wisdom come into play. 

Here are some principles to help you make wise decisions about your estate—particularly when it comes to real estate—and avoid unintended conflicts among your heirs.

The Common Approach: Equal Division

One of the most common phrases in wills is, “My estate will be divided equally among my children.” This approach seems fair and straightforward, especially when the estate consists entirely of financial assets. However, complications arise when property, such as a home or vacation property, is included.

When real estate is left to multiple heirs, they face tough decisions:

• Joint ownership: Should they retain the property together, splitting the responsibilities and costs?
• Sell and split proceeds: Should they sell the property and divide the cash?
• Buy out: Should one or more heirs buy out the others to take full ownership?

These decisions can quickly lead to financial and emotional challenges without clear guidance.

The Hidden Challenges of Inheriting Property

Leaving property to multiple heirs often creates unexpected burdens, both financial and emotional.

Properties come with ongoing expenses, including:

• Maintenance costs
• Property taxes
• Insurance premiums
• Homeowners association fees

Who makes decisions about upkeep? How are expenses divided? And what happens if one heir can’t—or won’t—pay their share? These issues can turn a blessing into a burden.

Emotions can also complicate property decisions, especially when tied to childhood memories. Disagreements over minor details—like paint colors or furniture placement—can spiral into larger conflicts. Long-buried resentments may resurface, particularly if one sibling is named executor and perceived as having undue authority.

Practical Solutions to Prevent Conflict

To avoid these challenges, consider these strategies:

Treat Property Like Any Other Asset

Many estate experts recommend stipulating in your will that all property is to be sold, with proceeds divided among heirs. This approach provides clarity and avoids forcing heirs into joint ownership.

Allow for Flexibility

Some heirs may wish to “buy out” the others to retain the property. By structuring your will thoughtfully, you can provide this option while ensuring a fair division of the estate.

Consider Unique Needs

Ron Blue, author of Splitting Heirs, suggests that “if you love your children equally, you will treat them uniquely.” Equal division may not always be the wisest choice. Consider factors like financial need and money management skills when planning your estate.

The key to preventing conflict lies in communication. Discuss your estate plans openly with your family so they understand your decisions and the reasoning behind them. This transparency eliminates surprises and fosters unity among your heirs.

Seek Professional Guidance

Creating or updating a will is a critical step that requires professional expertise. Work with an estate attorney who shares your Christian worldview to ensure your wishes align with biblical values. Certified Kingdom Advisors are an excellent resource; visit FaithFi.com to find one near you.

By planning thoughtfully and communicating clearly, you can leave your children and grandchildren not only a financial inheritance but also a legacy of love and wisdom. Proverbs 13:22 reminds us of the importance of stewardship—not just in what we leave behind but in how we prepare to pass it on.

On Today’s Program, Rob Answers Listener Questions:

• I'm 77, and my husband is 81. The only thing that we have of any value is property. We live on about an acre and a half, and we're in a trailer. We would like to gift this property to our grandson, who is 26. We would like to know the best way to gift it without him being hit with too much of a financial penalty.
• I'm trying to figure out how capital gains are calculated when I withdraw money from my 401(k), especially since my company stock has appreciated significantly over the years.
• My daughter's credit score is 625, and she's committed to repairing it. My credit score is over 800, and I've heard you talk about making someone an authorized user on a credit card to help with their score. How does that work, and how would it affect our credit scores?
• I'm completely lost when it comes to finances. However, I want to set my family up for financial success, so I would like to know if you could point me to a resource that can help me learn what I need to know about finances.

Resources Mentioned:

• Faithful Steward: FaithFi’s New Quarterly Publication
• Christian Credit Counselors
• Christian Healthcare Ministries (CHM)
• Master Your Money: A Step-by-Step Plan for Experiencing Financial Contentment by Ron Blue with Michael Blue
• Splitting Heirs: Giving Your Money and Things to Your Children Without Ruining Their Lives by Ron Blue with Jeremy White
• Your Money Counts: The Biblical Guide to Earning, Spending, Saving, Investing, Giving, and Getting Out of Debt by Howard Dayton
• Money, Possessions, and Eternity: A Comprehensive Guide to What the Bible Says about Financial Stewardship, Generosity, Materialism, Retirement, Financial Planning, Gambling, Debt, and More by Randy Alcorn
• Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)
• FaithFi App

Remember, you can call in to ask your questions every workday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources.

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