#1- I AM SINGLE AND DON’T OWN MUCH SO I DON’T NEED AN ESTATE PLAN
Many single folks believe because they don’t have a house, kids, etc., they don’t need to bother with a will or estate plan. Well, they should. They probably have parents or siblings. Maybe they have pets. Or favorite charities that would love any level of contribution. Or perhaps a friend who has always admired an antique dresser or a piece of jewelry. Sure, if this person dies without a will (that’s called dying intestate), the State of Ohio will step in via probate and distribute your assets to your closest surviving relative. Maybe a parent or sibling. But the charity won’t get anything. Your pet may end up in a shelter because you didn’t make arrangements. And your best friend will have nothing to remember you by. Just because you don’t have a lot of assets doesn’t mean your life wasn’t filled with meaningful relationships and you didn’t care about those pets, friends, and charities. Being single does NOT mean you don’t need a plan.
#2 – ONLY THE WEALTHY NEED ESTATE PLANS
You might be surprised to learn how many believe that estate plans are only for the rich. Those with multi-million dollar homes, vacation homes at the beach, several sports cars, maybe a racehorse or two. Sure, these individuals usually have estate plans (though we do read once in a while about a wealthy celebrity who never quite got around to drafting the plan). Still, estate plans are for ALL of us. Wealthy, not wealthy and in-between. That is because estate plans are not just about the assets. They are about your loved ones and ensuring you’ve done everything possible to protect them after you’re gone. For example, providing clear direction on how you want your assets to be distributed to avoid any misunderstandings or disputes among your loved ones. An estate planning attorney can provide the guidance you need to ensure all the “I’s are dotted and t’s are crossed” with your plan, giving you enormous peace of mind. And we all deserve that, not just the rich.
#3 – I DON’T NEED A WILL. WHEN I DIE, MY LOVED ONES WON’T ARGUE OVER MY ASSETS
I am willing to bet every person reading this has experienced, first or second hand, what can happen when someone dies without a will or clear direction on who gets what. Siblings or adult children who had been on good terms suddenly turn on one another, engaging in arguments over assets and claiming the decedent always promised a particular asset to them. And maybe that person did, but if it isn’t in writing, then it doesn’t count. Families have been permanently torn apart over what might appear on the surface to be a simple thing, a beloved keepsake that has no actual monetary value. The simple way to ensure your family doesn’t go through this is to have a will. Better yet, an estate plan with all the proper legal documents such as health care directive, living will, and power-of-attorney.
#4 – GOING THROUGH PROBATE IS EASY; MY HEIRS WON’T MIND
So, if #3 above didn’t motivate you to create a will, read on. If you have ever been through probate, you likely don’t believe this myth. But let’s start at the beginning. What is probate? If a person dies without a will (called dying intestate), the State of Ohio steps in. According to the Ohio Bar’s website, probate is “a legal proceeding to administer certain kinds of property (called probate property) owned by someone who has died (the decedent), to see that claims, expenses, and taxes are properly paid, and to see that the remaining estate is distributed to those entitled to receive it under the terms of the decedent’s will or under Ohio law.”
It says, “Probate property consists of all property titled in the decedent’s name and not transferable on death. It is distributed according to the terms of the decedent’s will or, if the decedent died without a will (intestate), according to Ohio law.”
Other aspects of probate that might interest you. If you don’t have a will, for example, your loved ones will be faced with what can be a time-consuming process. The probate process can take weeks, months, or even years. And no one gets any inheritance until it is all settled.
In addition to dragging things out, it might cost your loved ones THEIR hard-earned money to get it done—fees including court costs and possibly attorney and executor fees. It doesn’t seem fair.
Last but not least, if you are a private person and wouldn’t want the community, colleagues, friends, or neighbors to “know your business,” then you need to pay attention here. Probate proceedings are usually a matter of public record, meaning the details of your estate, including assets and distributions, are a matter of public record. Accessible by pretty much anyone. If you value privacy, this aspect of probate alone should convince you to have a will.
#5- I CREATED MY ESTATE PLAN SEVERAL YEARS AGO. I’M ALL SET.
Upon completing their estate plan, my clients enjoy both a sense of completion and peace of mind. They have taken the necessary steps to protect their hard-earned assets and loved ones. Kudos! It is undoubtedly a reason to celebrate. This myth might be true IF clients never experience a life change after establishing their plan. What do I mean by life change? Having children, getting married or divorced or coming into a large inheritance. Moving out of state. Losing a loved one such as a sibling, close friend, or spouse. Suffering a relationship break-up with a trusted individual who was your appointed trustee. Any or all of these reasons, and others, are enough to necessitate updating your plan. This is why I offer a complimentary review of my client plans every three years to ensure they still meet their goals. But, the good news here is that an update to a plan is usually a quick and painless event. Make the updates, and you’re done. Very easy. An outdated plan can be almost worse than not having one at all.
In summary, I hope I have cleared up any misconceptions you might have had about wills and estate plans and encouraged you to call me to create or update your plan soon. Life is uncertain. We don’t know what tomorrow holds. Call me at 513-399-7526, and my website is www.davidlefton.com.