If you asked me 20-YEARS AGO about Estate Planning, I would have looked at you with a BLANK FACE. Fast-forward twenty-years, and I'm an estate planning attorney.
Contrary to popular opinion, Estate Planning is not just a fancy word lawyers made up to add to their infinite lexicon of fancy words.
Estate Planning is actually a functional word that embodies the process of controlling the what, when, and how your assets (i.e. estate) are distributed when you are gone and living your best AFTERLIFE.
Estate planning is synonymous with a corporation's bylaws or a coach's playbook or a last will and testament (which incidentally is also part of an estate plan).
In all three cases, plans of action, terms, and underlying objectives are meticulously thought out in order to create a seamless transition and distribution postmortem.
At its core, Estate Planning saves your loved ones time, money, and labor. Look, if you've ever encountered someone that was tasked with administering someone's estate, who did not have a trust, will, beneficiary designation (i.e. an estate plan) etc., they'll tell you what a nightmare it was, and that by no means whatsoever, is it a walk in the park.
Estate Planning SOLVES this problem.
ESTATE PLANNING: A COMPREHENSIVE PLAN
Having a will is good, but having a trust and will is better. When you are injured or god forbid mentally and/or physically incapacitated having an advanced health care directive is good, but having a durable power of attorney and an advanced health care directive is better. If you have an IRA, Roth IRA, Life Insurance, CDs, Stock/Bonds, an LLC/Corporation/Sole Proprietorship, etc., naming a beneficiary is good, but naming a secondary beneficiary (i.e. your trust) as an alternate to your primary beneficiary is better.
Estate Planning is basically the WHOLE ENCHILADA; a comprehensive plan that covers you (similar to full coverage car insurance) during life and at death.
You wouldn't just have the front half of your car insured right? Of course not, because what if you had an accident that involved the back half, then where would that leave you? The same is true of Estate Planning. Having a trust is great if you just want to ensure your assets avoid Probate AND get to your loved ones, but what if you have minor children or want to disinherit a child. Then what? You'll need a will. Having an estate plan is like full coverage on an automobile. It doesn't matter where the accident occurs, who's at fault, or whether its a fender bender or a total loss, an estate plan will cover you and your situation, PERIOD.
ESTATE PLAN: DO YOU REALLY NEED ONE OR IS JUST EXTRA TOPPINGS
I get this question time and time again, "Do I really need an estate plan?"
Listen, I wish I could give you a straight black and white answer but I can't. The truth is, it DEPENDS. On what you ask?
It depends on what assets you own, whether there are other probate avoidance tools that exist for that particular asset, the level of control you want over the asset, and other intangibles that will be different from one person to the next.
For instance, if you own nothing, then "NO" you don't need an estate plan because you have nothing to give. This also presumes you don't have minor children and thus you don't need to tackle the question of who do you want to be your child's personal guardian should you and your spouse die while your child is still a minor. The thing is, if your reading this more likely than not you have some money in the bank, you might have young kids, maybe you have a retirement account, an inheritance, maybe a home, well you get the point.
The more assets you have and the bigger your family is, the more likely an estate plan is right for you. There is also the fact that maybe you have children from a prior marriage and want to ensure your children receive some of your estate, and not just your surviving spouse.
There's a lot of factors that go into deciding whether a trust or a will, power of attorney or a health care directive, assignment of interest or a beneficiary designation, or all of the above are right for you and your situation.
Hence, whether you need an estate plan will depend on your unique set of circumstance and the level of control you want over your estate after you've KICKED THE BUCKET.
ESTATE PLANNING: DON'T OVERTHINK IT
NONE of us live forever!
This is why if you believe an estate plan is in yours and your family's best interest then don't wait until your on your death bed to create one. I cannot tell you how many times I've had clients who have mere weeks to live who call me and want to RUSH an Estate PLAN.
The issue is, YES, it can be done, but NATURALLY when you rush things, you make it more likely that important things are going to be missed, people forgotten, assets unaccounted for.
Don't overthink it, if you have a home, are married and have children, you should absolutely have a trust and will and the very least.
Don't leave it to your surviving spouse or children to pick up the pieces when you are gone. BELIEVE ME, its a HEADACHE they don't want. Till next time my legalites.
-RJM LAWYER
[DISCLAIMER]: in no way should this article be construed as legal advice. You should always consult a licensed professional before making substantive legal decisions. This articles aim is at humor and providing marginal legal advise on variety of legal matters. By sharing said information in no way do I become your attorney or is a client-attorney relationship formed.
Commentaires