The vast majority of Americans say religious values and customs are a significant part of their lives. Surveys show that more than 95% of Americans believe in God or some higher being. Even many who profess not to be actively practicing any particular organized religion may still feel an affinity toward, or find comfort and solace in, the faith of their family or youth.

Yet when it comes to estate and financial planning, religious topics are rarely discussed and almost never integrated into planning. The most finely executed rolling GRAT tax strategy may still leave a family fractured beyond repair if religious disputes mar a parent's final days and funeral. If a client's personal beliefs include strong feelings about avoiding certain types of investments or making certain types of expenditures, and these are ignored, how can the investment plan really succeed?

Religious issues have received considerable media attention. The tragic last days of young Terri Schiavo's life became a media circus, undoubtedly magnifying the terrible pain for everyone involved. But financial planners rarely concern themselves with the decisions in a client's living will and health proxy (other than encouraging clients to address these documents with their attorney). So are there religious considerations that planners can and should address with clients? Absolutely.

A COMPREHENSIVE PLAN

While some religious considerations may be on the fringe of a planner's responsibility, they nonetheless remain important to providing a surprisingly large number of clients with a comprehensive estate plan. Planners do not need to develop comprehensive religious knowledge or expertise, all they need to do is raise the issues and use their existing skill set a bit more creatively to address religious concerns. Religious queries should be viewed no differently than other personal questions planners routinely ask.

As advisors add client's religious and other personal wishes to the planning process, they often build a bond that will expand the relationship beyond being merely a planner to being a true family advisor. The rewards of providing that level of personal service will enhance their practice and client retention. Following is an overview of how clients' religious beliefs might affect some aspects of estate planning.

* General directions. If religious customs or laws are important to a client, then advisors can tailor estate planning and documents to reflect these religious wishes. For example, limited liability companies (LLCs) and family limited partnerships (FLPs) are ubiquitous among wealthy clients. The legal documents governing a client's business or investment FLP can require that business operations conform to general religious precepts.

For example, a family real estate LLC might include a prohibition against renting to tenants such as a bar, liquor store, an adult bookstore or other businesses that would offend the family's religious views. Addressing these concerns early can avoid conflict at a later stage.

A more specific approach would be to modify specific provisions to incorporate religious requirements. For example, an LLC operating agreement for a Muslim client could include a prohibition against paying or earning interest based on a prohibition of making a guaranteed profit on capital. There are other ways to structure many business transactions to avoid charging interest. For example, the operating agreement could mandate that in the event of any dispute about the application of Islamic investment standards, the manager shall consult the ISNA (Islamic Society of North America) for further clarification.

* Charitable giving. Every religion advocates the virtues of charity, but charitable giving can be tailored to reflect the unique nuances of your client's faith. While many religions mandate tithing of income or assets to charity, others provide more specific standards.

For example, charitable giving is an essential part of the Baha'i Faith as it demonstrates devotion to Baha'u'llah and represents the ideal of charity. Baha'is are expected to give a certain percentage of their income and assets to Baha'i charitable organizations through a mandatory donation. But proactive giving is often necessary to comply with the requirements.

Planners needn't understand the nuances of any particular client's religious mandates for philanthropy. Instead they must merely inquire how to coordinate techniques like charitable lead trusts, bequests and insurance to address religious charitable objectives.

* Lending transactions. Several religious traditions place prohibitions and restrictions on the charging of interest. While modern commerce has generally ignored these restrictions, they are important for a meaningful number of clients. Thus, in structuring an estate plan transaction for a Muslim or Jewish client, advisors should be ready to address how to recharacterize or avoid interest charges, if asked.