Most people think of estate planning as being only for family members. That is, if they ever think of it at all! But I recently heard about a situation where one individual’s estate plan included a neighbor. Not something you see every day. Here is what happened.
A man and his wife were divorcing and had to put their home up for sale because neither could afford it on their own. The day the sign went up, the next-door neighbor called the man, John (not his real name, of course), very concerned about the home being sold. You see, the neighbor, a lovely elderly lady in her 80s (we’ll call her Doris here), had become quite close to the couple. Mostly to John, who had become indispensable to her over the years; always there to lend a hand, allowing her to remain in her home, alone, which was her wish. John had to explain he couldn’t stay in the house alone; he couldn’t cover the mortgage payment on his income. While Doris was older, she was quick to understand the situation AND just as fast to come up with a solution.
Doris insisted that she would loan John the money so he could stay in the house, make the payments, and therefore continue to be a great support to her. She contacted her attorney to make the necessary financial arrangements.
I was glad to hear that when the attorney learned of Doris’ request, red flags popped up as they should have. We have all heard sad stories of the elderly being taken advantage of, losing their life savings to disreputable con artists. The attorney insisted on interviewing John (and his soon-to-be ex-wife) to ensure this wasn’t some scam. While John didn’t say so, I’m confident the attorney conducted a background check as well, looking into John’s finances, employment, and so forth.
The attorney was assured all was on the up and up. So, Doris’s estate plan was updated accordingly.
Doris passed away in 2019, but she had prepared for that, of course. Upon her death, the remaining amount of money owed by John was forgiven. That was Doris’s gift to John for being the best neighbor ever. As John said, he would have done everything to help her (and had) without any compensation. She was a lovely woman who just needed a little help.
I thought this was a great example of how estate planning isn’t just about leaving your assets to your spouse or children. It is also a good illustration of the importance of making sure a person’s wishes are fully and legally documented so no one can challenge them.
Whether or not you have a worthy neighbor, having an estate plan is critical.
All the legal instruments typically included in an estate plan, from a will to medical directives, will ensure your loved ones will have a clear understanding of your wishes. Don’t leave them guessing about who gets what or if you would want artificial life support or not. Call me so we can put your customized plan together soon. I can be reached by calling 513-399-7526 or by contacting me here for more information.