From Anstey’s Doctrinal Definitions:
The distinction between these two things is of vast importance if an understanding is to be had of the New Testament Scriptures—especially the epistles. Standing and state refer to two sides of the truth on a variety of subjects, and seeing this necessitates “rightly dividing the Word of truth” (2 Tim. 2:1515Study to show thyself approved unto God, a workman that needeth not to be ashamed, rightly dividing the word of truth. (2 Timothy 2:15)). If we don’t distinguish between these things, we will come away with mistaken ideas.
Standing
This has to do with where a person stands in relation to God. There are only two possible standings in which men can have before God:
Through receiving the Lord Jesus Christ as our Saviour, our standing before God is forever changed from being “in Adam” to being “in Christ.” It is a standing in “grace” that is eternally fixed (Rom. 5:1-21Therefore being justified by faith, we have peace with God through our Lord Jesus Christ: 2By whom also we have access by faith into this grace wherein we stand, and rejoice in hope of the glory of God. (Romans 5:1‑2); 1 Cor. 15:11Moreover, brethren, I declare unto you the gospel which I preached unto you, which also ye have received, and wherein ye stand; (1 Corinthians 15:1); 1 Peter 5:1212By Silvanus, a faithful brother unto you, as I suppose, I have written briefly, exhorting, and testifying that this is the true grace of God wherein ye stand. (1 Peter 5:12)). It is perfect and complete now as it ever will be! It will not be more perfect by our entrance into heaven. Having a standing before God “in Christ” means that the believer is in Christ’s place before God (Eph. 1:66To the praise of the glory of his grace, wherein he hath made us accepted in the beloved. (Ephesians 1:6); 1 John 4:1717Herein is our love made perfect, that we may have boldness in the day of judgment: because as he is, so are we in this world. (1 John 4:17)). (See Acceptance and In Christ.)
This has to do with the believer’s moral condition. If we walk closely to the Lord in communion with God, we will be in a good state of soul. But if we are careless and indifferent to the claims of Christ in our lives and live at a distance from Him practically, our state of soul will be poor. Needless to say, our state will have an effect on our walk.
The practical exhortations in the epistles having to do with our state are based on our standing in Christ. For instance, Colossians 3:9-109Lie not one to another, seeing that ye have put off the old man with his deeds; 10And have put on the new man, which is renewed in knowledge after the image of him that created him: (Colossians 3:9‑10) says, “Lie not to one another, seeing that ye have put off the old man with his deeds; and have put on the new, which is renewed in knowledge after the image of Him that created him.” The fact that we have put off the old man and have put on the new (which has to do with our standing) should exercise us about not lying to one another—since what is true of our standing should be also true of our state. Hence, while our standing in grace before God is unalterable, our spiritual state of soul may fluctuate, depending on how we walk.
In Philippians 4:1111Not that I speak in respect of want: for I have learned, in whatsoever state I am, therewith to be content. (Philippians 4:11), Paul spoke of being “content” in “whatsoever state” that he was in. We must not misunderstand what he was saying in this verse. He was not referring to his spiritual state, but rather, to his temporal state—that is, the possessing of material goods or having a lack thereof. Paul would never encourage contentedness with a low spiritual state.
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As mentioned, in studying the various subjects of Scripture, we must take care to be “rightly dividing the Word” (2 Tim. 2:1515Study to show thyself approved unto God, a workman that needeth not to be ashamed, rightly dividing the word of truth. (2 Timothy 2:15)). With each subject that we look at we must distinguish what pertains to our standing and what pertains to our state. If we do not take note of this, we will get confused very quickly. We may be led to think that the Bible contradicts itself. The following are a few examples:
Perfection—Hebrews 10:1414For by one offering he hath perfected for ever them that are sanctified. (Hebrews 10:14) says that Christ’s work on the cross has made us “perfected forever.” But Hebrews 13:20-21 Says that God is seeking to make the believer “perfect”—thus indicating that believers are not presently perfect! This seems contradictory, but when we understand that the former text refers to our standing and the latter text to our state, the problem is solved.
Holiness—In Colossians 3:1212Put on therefore, as the elect of God, holy and beloved, bowels of mercies, kindness, humbleness of mind, meekness, longsuffering; (Colossians 3:12), believers are said to be “holy and beloved,” but in 1 Peter 1:1616Because it is written, Be ye holy; for I am holy. (1 Peter 1:16), we are exhorted: “Be ye holy.” Again, these passages may seem to conflict with each other, but when we understand the distinction between standing and state, we see that there is no contradiction. The first passage applies to our standing, and the latter to our state.
Acceptance—In Ephesians 1:66To the praise of the glory of his grace, wherein he hath made us accepted in the beloved. (Ephesians 1:6), the believer is said to be “accepted in the Beloved,” but in 2 Corinthians 5:99Wherefore we labor, that, whether present or absent, we may be accepted of him. (2 Corinthians 5:9) we are told that we are to “labour” that “we may be accepted of Him.” Again, these things are not a contradiction; the first has to do with our standing and the second has to do with our state.
Sanctification—In 1 Corinthians 1:22Unto the church of God which is at Corinth, to them that are sanctified in Christ Jesus, called to be saints, with all that in every place call upon the name of Jesus Christ our Lord, both theirs and ours: (1 Corinthians 1:2), believers are said to be “sanctified in Christ,” but in 2 Timothy 2:2121If a man therefore purge himself from these, he shall be a vessel unto honor, sanctified, and meet for the master's use, and prepared unto every good work. (2 Timothy 2:21) we are told that if we separate ourselves from vessels to dishonour, we will be “sanctified.” The former refers to our standing and the latter has to do with our state.
Salvation—In Acts 16:3131And they said, Believe on the Lord Jesus Christ, and thou shalt be saved, and thy house. (Acts 16:31) we are told to “believe” on the Lord Jesus Christ to be “saved,” but in Philippians 2:1212Wherefore, my beloved, as ye have always obeyed, not as in my presence only, but now much more in my absence, work out your own salvation with fear and trembling. (Philippians 2:12), we are told to “work” for our “salvation.” Are we to believe to get salvation or are we to work to get it? Again, the answer lies in understanding that one applies to our standing and the other to our state.
Purgation—In Hebrews 1:33Who being the brightness of his glory, and the express image of his person, and upholding all things by the word of his power, when he had by himself purged our sins, sat down on the right hand of the Majesty on high; (Hebrews 1:3) and 9:14, believers are said to be purged by faith in Christ’s finished work, but in 2 Timothy 2:2121If a man therefore purge himself from these, he shall be a vessel unto honor, sanctified, and meet for the master's use, and prepared unto every good work. (2 Timothy 2:21), we are to purge ourselves. Again, we have the difference between standing and state.
Dead With Christ—In Romans 6:22God forbid. How shall we, that are dead to sin, live any longer therein? (Romans 6:2), it says that believers are “dead,” but in Romans 8:1313For if ye live after the flesh, ye shall die: but if ye through the Spirit do mortify the deeds of the body, ye shall live. (Romans 8:13) and Colossians 3:55Mortify therefore your members which are upon the earth; fornication, uncleanness, inordinate affection, evil concupiscence, and covetousness, which is idolatry: (Colossians 3:5) we are told to “put to death” the evil deeds of the body. Again, this can only be understood through knowing the difference between standing and state.
A person will be hopelessly confused in trying to understand these and many other Biblical topics, which could be included here, if he didn’t know the difference between standing and state.