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iQuestions Faculty, Ron Blue 
 
 
Question: 
 
Is there a difference between wealth transfer and estate planning? 
 
Answer: 
 
Most people talk about estate planning, but I’d like to introduce 
another term, and that’s called wealth transfer. And I’d like to draw 
some distinctions between wealth transfer and estate planning.  
 
First of all, if I think wealth transfer, what I want to think about is the 
impact on the beneficiary as the highest priority. In estate planning, 
typically the impact on the donor and the estate is the highest priority. 
In other words, I want to begin asking the questions. If I am going to 
transfer an estate or wealth, what’s going to be the impact on the 
beneficiary? Not, what is the best for me, as the donor or as the one 
who created the estate. So, I think differently when I think wealth 
transfer as opposed to estate planning. 
 
Another way that I think differently is that wealth transfer can and in 
many cases should be begin now, whereas estate planning begins at 
death. For example, if I am blessed enough and fortunate enough to 
have assets that probably are going to pass in my estate, is it maybe 
better to begin transferring those assets now to my children and to my 
grandchildren, when they can use them, as opposed to waiting until it 
has to happen at death? 
 
And the third reason, that they’re different, is I believe that wealth 
transfer is stewardship-driven, and estate planning is tax efficiency-
driven. Wealth transfer says this, “These resources were entrusted to 
me by God, and my last decision that I get to make is who is the next 
 
 
steward?” And so, I ask myself, “Who is the best steward to manage 
the resources that God has entrusted to me?” 
 
When it comes to estate planning, typically it’s driven by, “How can I 
minimize the estate taxes and pass on the most on to my 
beneficiaries, as opposed to thinking about both the beneficiary and 
the stewardship of those assets?”  
 
A fourth distinction is that wealth transfer, I believe, can and should 
honor God. It says, “God, you own it. These are your resources. What 
would you have me to do with them?” Many times, when it comes to 
estate planning, it honors self. It is amounts given to honor me. Maybe 
it’s my business or maybe it’s my university or maybe it’s my church. 
And it’s thought, “How can I get the most honoring after death?” I 
don’t think that we’re really going to care, after death, what kind of 
honor that we get. And so, the distinction is I want to honor God, as 
opposed to honor myself.  
 
And then, lastly, is that wealth transfer transfers ownership now, and 
estate planning typically retains control until death. I would much 
rather have my children and grandchildren and charities—that I am 
involved in—use the resources that God gave to me right now, as 
opposed to after my death. I would rather see the benefit, if you will, 
of my children and my grandchildren and my charities. How are they 
benefiting from those resources? I can learn a lot by seeing how they 
handle whatever it is that I choose to transfer to them now, knowing 
that it’s all God’s resources that I am responsible for. 
 
 
 
Blue -2- 
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