I know when I mention the terms “trust” or “estate plan”, some might automatically think I’m referring to legal instruments that only the super-rich use or need. That “everyday people” aren’t wealthy enough to benefit from them. That can’t be further from the truth. In fact, I have found very few incidents where a client wouldn’t benefit from having an estate plan because … wait for it … IT’S NOT JUST ABOUT THE MONEY! Sure, it is about the money, and who gets what if you die, but a well-thought-out estate plan, including a trust, offers valuable benefits anyone, rich or not, can use.
Let’s review the key elements of a basic estate plan here in Cincinnati and how they can benefit everyone, not just the wealthy.
HEALTHCARE DIRECTIVES – What if you become incapacitated – let me give you an example. Let’s say you are in a coma due to a car accident and unable to make medical decisions for yourself. Who will? Medical privacy laws are becoming stricter all the time. Don’t assume just because you are married, for example, that the doctors will accept your spouse as your “health care agent” if you don’t have a legal document appointing them. And if you’re single, who would you prefer to speak on your behalf? Your best friend who knows you well or an estranged sibling? Having health care directives in place can also spell out your choices regarding end-of-life care, organ donations, burial vs. cremation wishes, and more. You see? Healthcare directives can be beneficial for EVERYONE – money doesn’t enter into it.
POWER OF ATTORNEY – Another “you don’t need to be wealthy to enjoy the benefits” piece of a basic estate plan. Along the same lines as above, if you are incapacitated, let’s say for quite a while, who will make sure your rent (or house payment) is paid? For those married, your spouse, of course, but what if you are single or divorced? Or your car payment? Or credit card payment? The last thing you need while in the hospital would be late payment fees, a repossessed vehicle, or worse, the start of foreclosure or eviction actions. You can name an individual to be your agent, and that person will have the authority to access your financials to make sure bills are paid and more.
A WILL – Estate plans and trusts are not just for the wealthy, and we’ve all heard horror stories about the rich and famous who died without a will. The performer Prince comes to mind. What a hot mess he left for his loved ones. It took years and thousands of dollars in legal fees to sort that out. Even if you have little in the way of worldly goods, just making sure you don’t put your loved ones through the stress of sorting it out after you die should give you peace of mind. Even if it is only to ensure your best friend gets your marble collection and your sister gets your used car. And if you have a pet, make sure to make accommodations, including funds to keep it healthy and happy after you’re gone.
A TRUST – The word “trust” conjures up the thought of “trust fund baby” and the like. Yes, that can happen, but most trusts are created to help everyday avoid probate. Plus, it allows you to be quite specific about how your assets will be distributed. True, some assets are generally not included in a trust (I’d be happy to review specifics with you), but many can be. When you set up a trust to avoid probate, whether you have a little or a lot, your beneficiaries will be grateful for saving them time and stress. It’s like another gift you’re giving them.
So, in summary, wealthy individuals certainly benefit from having estate plans and trusts here in Cincinnati. No doubt, but it’s really not just about the money. A healthcare directive, a power of attorney, a will, and a trust are just the basics, and all offer genuine benefits to you and your loved ones. Don’t think because you haven’t amassed a fortune; you can’t benefit from it all. I would be happy to talk to you about your situation, and together we can determine what’s best for you and your loved ones. Please, don’t hesitate. None of us know what the future holds. Call me at 513-399-7526 or visit my website www.davidlefton.com for more information.